Delta pilots approve contract revisions
May 15, 2008
Union agrees to pact as part of merger with Northwest Airlines
Delta Air Lines Inc. pilots voted overwhelmingly in favor of changes to their
contract that will give them pay raises, an equity stake and other benefits, but
also will give management more leeway as part of a proposed combination with
Northwest Airlines Corp.
Voting, which started May 1, ended Wednesday. A letter
from the chairman of the union's executive committee, Lee Moak, to fellow pilots
said 78 percent of pilots who voted approved of the changes.
The contract covers more than 7,000 pilots at
Atlanta-based Delta. Northwest's 5,000 pilots are not part of the agreement.
Delta agreed to extend its existing collective bargaining agreement with its
pilots through the end of 2012. The revised contract provides the Delta pilots a
3.5 percent equity stake in the new company.
In exchange, the company will be able to place the
Delta code and brand on Northwest flights and retain Northwest's large stake in
Midwest Airlines, while maintaining those two carriers' separate operational
status.
Delta announced April 14 that it had agreed to acquire
Northwest in a stock-swap deal that would create the world's largest carrier.
The deal, which calls for the combined carrier to be called Delta and to be
based in Atlanta, must be approved by shareholders and regulators. Delta pilots
have been granted a voting seat on the board of the combined company.
Union leaders from Delta and Eagan, Minn.-based
Northwest hope to work out an agreement on a merged contract and an integrated
seniority list. They could not agree on the seniority issue before the
combination was announced.
Moak was expected to discuss the proposed combination
with lawmakers in Washington later Wednesday.
The two airlines believe the deal is necessary to
allow them to be profitable in the future amid fuel prices that have soared to
more than $125 a barrel.
Source: The Associated Press
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