Delta Pilots May Strike Over Pensions

Nation's 3rd Largest Carrier Says A Strike Would Put Them Out Of Business

(AP)  Delta Air Lines Inc. pilots will strike if their contract is thrown out as part of the carrier's attempt to impose $325 million in concessions, the chairman of the union's executive committee said Thursday.

The chairman, Lee Moak, also told The Associated Press that the airline has informed the union that it believes the pilots' defined benefit pension plan will be terminated.

"If our contract is rejected, we will strike," Moak said in an interview in his most definitive statement on the subject to date.

The nation's third-largest carrier has said a strike would put the Atlanta-based company out of business.

In response to Moak's comments, Delta spokesman John Kennedy repeated past company statements that the airline hopes to reach a consensual agreement with its pilots.

"Our language hasn't changed," Kennedy said. "We're in negotiations, so that's all we're focused on."

As to the pilots' pension, Kennedy said that as far as he knows Delta has not made any decisions on that.

"We're fighting hard to save our plans and are certainly awaiting the outcome of the pension bill in Congress," he said.

Delta and the negotiating committee of the union that represents its 6,000 pilots have less than three weeks to reach a comprehensive agreement on a second round of permanent pay and benefit cuts.

If the sides can't do that by March 1, a three-person arbitration panel will decide Delta's request that its contract with its pilots be thrown out so the company can impose $325 million in cuts unilaterally.

The pilots union has offered about $115 million in annual concessions.

Moak's comments came as Delta, which is operating under protection of a bankruptcy court, announced new international destinations in Africa on Thursday. A top executive said the friction with the pilots won't stand in the way of the carrier's expansion plans.