November 11, 2004
Delta Pilots Ratify Agreement to Provide $5 Billion in Savings
ATLANTA, GA --- The Delta pilots have ratified an agreement that will provide Delta Air Lines with $5 billion in cost savings over a five-year period. Of the 6,756 pilots eligible to vote, 91 percent cast a ballot. Of those, 79 percent voted in favor of the agreement.
Elements of the new contract include:
A 32.5 percent wage reduction, effective December 1, 2004.
Changes to work rules to increase the efficiency of pilot scheduling.
An increase in the number of 70-seat jets that Delta’s regional code-sharing partners may operate.
A freezing of the pilots’ retirement Defined Benefit Plan and the creation of a Defined Contribution Plan with a reduction in the total benefit.
Changes to the Delta Pilots Medical Plan resulting in higher premiums.
Approximately 30 million stock options distributed to pilots.
An amendable date of December 31, 2009.
“Our airline has been managed to the brink of bankruptcy and the Delta pilots had to decide between two bad choices. They chose the lesser of two evils,” said Capt. John Malone, Chairman of the Delta Master Executive Council (MEC), a unit of the Air Line Pilots Association (ALPA). “We have bought Delta time to continue restructuring outside of the courts. It is now up to management to successfully execute a viable business plan.”
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