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Delta debtor Comair requests court approval to reject pilots' collective bargaining agreement
By Caroline Salls
Pittsburgh, Nov. 2 - Delta Air Lines, Inc. debtor Comair, Inc. requested court approval to reject its pilots' collective bargaining agreement, according to a Thursday filing with the U.S. Bankruptcy Court for the Southern District of New York.
The pilots are represented by the Air Line Pilots Association, International.
According to the motion, in January 2006, ALPA submitted Comair's original contract proposal to a vote of the pilots, and the pilots accepted and ratified that proposal, which contained $17.3 million in pilot labor cost reductions, in addition to previous pilot cost reductions under other agreements reached in 2005.
The January proposal, however, contained a contingency clause that prohibited implementation of the agreement until Comair achieved its then-proposed cost reductions for flight attendants and mechanics.
When it later became apparent that Comair would not achieve its original cost reduction targets for flight attendants, the company said ALPA confirmed that it would not allow implementation of the January agreement.
Comair said it then resumed negotiations with ALPA for a new agreement on pilot labor cost reductions, which reduced the size of its proposed pilot cost reductions to $15.8 million from $17.3 million, but these negotiations have been unsuccessful to date.
As a result, Comair said it is looking to reject the pilots' contract to realize the necessary labor cost reductions from changes to the rates of pay, rules and working conditions.
A hearing is scheduled for Nov. 27.
Delta, an Atlanta-based airline, filed for bankruptcy on Sept. 14, 2005. Its Chapter 11 case number is 05-17923.
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