Labor & Economic News Blog

Wednesday, September 06, 2006

Judge: Delta can terminate pilot pension plan

Judge: Delta can terminate pilot pension plan
A bankruptcy judge Tuesday approved Delta Air Lines' request to dump its pilots' pension plan, clearing another obstacle to the carrier's hopes of emerging from Chapter 11 proceedings by next summer. Termination of the pilot plan is the latest step by the Atlanta airline to overhaul its cost and labor structure and become a leaner competitor in a turbulent industry. The move enables Delta to avoid about $2.5 billion in payments needed to bring the pilot plan to full funding. The airline also argued that certain features of the plan hindered its ability to line up financial backers.

 



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