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Wed, Jul 07, 2004

Delta May Ask Pilots For $1 Billion Concession

Otherwise, Carrier Says, It's Chapter 11

Delta Airlines wants its high-paid pilots to give up $1 billion a year in concessions, otherwise threatening to file for Chapter 11 bankruptcy, according to a national newspaper.

USA Today reports the new demand is decidedly higher than the $800 million Delta asked its pilots to give up earlier this year.

The pilots' union (ALPA) appears unwilling to play the "take-it-or-leave-it" deal Delta is offering. A spokeswoman for the union told USA Today that it will make its own offer to the airline next week.

Talks between Delta and the ALPA broke down back in January. The company wanted $800 million a year in concessions. The pilots were only willing to take a 30-percent pay cut. That left them the highest paid pilots in the business, while it left Delta with a lot of red ink on its books.

But the ALPA pilots may want something in return for their concessions. Union Chairman John Malone told USA Today he expects some sort of equity or a seat on the Delta board if his pilots give in.

FMI: www.alpa.org, www.delta.com

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