Proposal for Delta pilots to be aired Thursday
By RUSSELL GRANTHAM
The Atlanta Journal-Constitution
Published on: 08/17/04

Delta Air Lines' pilots union said it expects to hear Thursday what sort of financial stake the company proposes if pilots agree to $1 billion in pay cuts and other concessions.

Union spokeswoman Karen Miller said Delta will present "a complete proposal regarding equity issues" at the meeting, which follows a recent exchange of new proposals that left the two sides well apart.

The meeting will come one day after Delta's board of directors meets Wednesday to get briefed on a new turnaround plan being prepared by executives.

Delta spokesman John Kennedy said the airline is "anxious to resume discussions" with the Air Line Pilots Association. He confirmed Thursday's meeting but declined to elaborate. "We are prepared to address concerns raised by ALPA," he said.

The union recently offered concessions that it valued at up to $705 million annually. The union said it wanted an equity stake in exchange and that the offer was contingent on concessions from lenders and other stakeholders.

Delta responded by saying it needs at least $1 billion in concessions, including unspecified changes to the pilots' pension plan.

While seeking a pilot deal, Delta Chief Executive Gerald Grinstein and his leadership team also have been working on a much-anticipated turnaround plan that Grinstein has said will be dramatic.

However, the airline also has said it will keep much of the plan under wraps as long as possible for strategic reasons.

Some industry analysts speculate that Delta will drop money-losing routes and further cut operations at hubs such as Dallas and Salt Lake City to concentrate on bigger hubs and longer-distance routes with a large share of business travelers.