Delta Air Lines and the Air Line Pilots Association have reached an agreement in principle on a cost-cutting deal that would prevent the leave of hundreds of pilots during the coronavirus pandemic, officials said Thursday evening.
The deal, which is subject to union members’ approval, would provide pilots with leave protection until Jan. 1, 2022. The deal includes a five percent reduction in mandatory minimum hours for pilots in exchange for ” improvements to the schedule and improved retirement savings benefits.
DELTA, CEOS-UNIS PROVIDE VERY DIFFERENT RETURN DATES FOR BUSINESS TRAVEL
“This agreement is the result of a partnership with ALPA and the search for common ground. It contains several quality of life improvements while allowing Delta to generate much-needed savings through a way to avoid time off – a key goal of ours from the start, ”said John Laughter, senior vice president and Chief Operating Officer of Delta in a note to employees.
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Earlier this month, Delta reported a loss of $ 5.4 billion for its fiscal third quarter of 2020. Passenger volume is down more than 70% from the same quarter a year ago. At the time, Delta CEO Ed Bastian warned that the airline would lay off around 1,700 pilots without a cost-cutting deal with union officials or additional government help.
Airlines have lobbied Congress for further relief as they face revenue shortfalls during the coronavirus pandemic. Under the CARES Act, airlines received $ 25 billion in aid and were barred from further holidays until October 1.
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The cost reduction agreement will be frozen if the federal government allows an extension of the relief measures under the same conditions set out in the CARES Act.
“ALPA has diligently sought creative solutions with Delta to achieve a win / win deal that preserves pilot jobs while positioning Delta to return to where it was before COVID, the pinnacle of the airline industry,” said Chris Riggins, Delta pilot and ALPA spokesperson. in a report. “With this agreement inking, ALPA’s priority will remain focused on having our voice heard on Capitol Hill as we continue to seek a clear extension of the CARES Act and the PSP despite recent delays that have been encountered.
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