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Published on 10/10/2006 in the Prospect News Distressed Debt Daily.

Delta unit Comair asks court to clarify ruling on CBA rejection

By Caroline Salls

Pittsburgh, Oct. 10 - Delta Air Lines, Inc. subsidiary Comair, Inc. asked the U.S. Bankruptcy Court for the Southern District of New York to clarify its ruling allowing rejection of the collective bargaining agreement with Comair flight attendants, according to a Tuesday court filing.

According to the motion, on Monday, Comair told its flight attendants and the International Brotherhood of Teamsters that, effective Nov. 15, Comair will implement some of the cost-saving modifications to the flight attendant collective bargaining agreement.

Comair said it also told the union and the flight attendants that Comair's entire proposal for a new agreement remains "on the table" and open for the Teamsters to accept.

However, Comair said it has not yet determined whether or when to implement three groups of additional proposed changes, which were included in the rejection order, including proposed changes which either have no meaning or legal significance in the absence of mutual agreement; provide future, "out-year," changes that are not presently ripe for implementation; or constitute enhancements, compromises, or "upsides" offered by Comair in an effort to encourage consensual agreement.

Comair said it is seeking clarification of the court's order because no clear guidance is provided on the appropriate scope of implementation of new terms and conditions of employment following labor contract rejection; and because Comair wants to honor both the court's intentions in issuing the order and all applicable legal obligations.

Comair said it has deferred implementation of changes so far in an effort to negotiate a new agreement with the Teamsters, but the parties Comair have been unable to reach an agreement on terms that the court found were necessary for Comair's successful reorganization; fair and equitable to the flight attendants; bargained in good faith by Comair; and rejected by the Teamsters without good cause.

As previously reported, the Comair flight attendants appealed the contract rejection on Aug. 3.

A hearing on clarification of the order is scheduled for Nov. 2.

Delta, an Atlanta-based airline, filed for bankruptcy on Sept. 14, 2005. Its Chapter 11 case number is 05-17923.


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