Delta cost cutting proposal
Delta Air, Pilots Reach Tentative Deal to Trim Costs
NEW YORK (Reuters) - Delta Air Lines said on Friday that it had reached a tentative deal with its pilots that will allow the airline to trim costs as the industry continues to struggle in the aftermath of the Sept. 11 attacks.
Under the deal, Delta pilots can schedule a month-long leave while receiving partial payment equivalent to 55 hours of flying time, less than they would receive for a full month of work, the airline said.
Atlanta-based Delta, the No. 3 U.S. airline, said the agreement allows it to reduce overall pay and better staff its different aircraft categories.
"It's really a mutually beneficial agreement,'' said Christine Frias, a spokeswoman for the airline.
The deal is still subject to approval by the Air Line Pilots Association. Union officials were not available for comment.
Most airlines have slashed capacity and cut jobs to better match lower demand. Earlier this year, Delta announced it would lay off 13,OOO workers as part of cutbacks. About 11,000 of those have opted for voluntary leave or early retirement programs.
Labor expenses are among an airline's highest costs and Delta's pilots became the highest paid in the industry after they reached a new contract deal in May, the airline said.