Delta, Pilots Implement New Contract

Delta Air Lines and its pilots today enacted a new contract that will garner $280 million in annual concessions, following yesterday's nod from pilots and subsequent U.S. Bankruptcy Court approval. The Chapter 11-protected carrier said the deal is "crucial to Delta's successful reorganization."

The Air Line Pilots Association, which represents Delta pilots, said voting closed Wednesday morning, with 95 percent of pilots casting ballots and 61 percent in favor of the new contract. Pilots at Northwest Airlines, which also is under Chapter 11 protection, early last month approved-with 95 percent turnout and 63 percent in favor- a five-and-a-half-year contract that reduces pilot costs by $358 million. That deal heads to the bankruptcy judge for final approval later this month.

Delta Air Lines in April took its first major step forward with its pilots union when the Air Line Pilots Association ratified the tentative contract agreement. As part of the deal, the carrier sought $280 million in concessions from pilots, reducing its initial figure of $325 million. Delta said the labor agreement will "become amendable on Dec. 31, 2009." Barring any disruptions, the company said the deal would contribute to hitting $3 billion in annual cost savings-with the goal of emerging from bankruptcy next year.

"We stand unified and focused on the shared goal of transforming our airline into a strong, fiercely competitive and profitable company-one that can grow and provide good jobs and financial rewards for its people and superior service and amenities to its customers. Our company has a solid plan for the future and Delta people are making real progress together," said Delta CEO Gerald Grinstein.