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Published on 12/22/2006 in the Prospect News Distressed Debt Daily.

Delta Comair unit seeks injunction against threatened pilot strike

By Caroline Salls

Pittsburgh, Dec. 22 - Delta Air Lines, Inc. subsidiary Comair, Inc. filed a complaint against the Air Line Pilots Association, its Comair master executive council, their officials and the Comair pilots seeking an injunction against a threatened pilot strike, according to a Friday filing with the U.S. Bankruptcy Court for the Southern District of New York.

Comair said it is looking to enjoin the defendants from authorizing or participating in any strike or work stoppage intended to interfere with Comair's airline operations or to cause Comair pilots to refuse to perform their normal responsibilities.

Although Comair was entitled to implement necessary changes to its pilots collective bargaining agreement as of Dec. 21, the company said it deferred implementation until Dec. 30 and continued to bargain with ALPA in the hope of reaching a consensual agreement.

Also, on Dec. 11, Comair representatives asked if ALPA would agree to provide 15-days advance notice of any planned strike activity in response to implementation, and ALPA representatives have not responded to this inquiry.

ALPA leaders at Comair, however, have stated that they will launch strike activity in response to any implemented contract changes, according to the complaint.

Comair said in the complaint that a strike by ALPA threatens to disrupt the travel plans of thousands of Comair's passengers, and also to endanger Comair's successful reorganization, as more than 1,500 Comair pilots are represented by ALPA, and Comair believes that many or all of them will participate in the job action called by their union.

In addition, Comair said even a short-term interruption of its airline operations would cause a significant loss of revenue, an increase in expenses, a drop in future bookings and a decrease in customer goodwill.

Comair said any sustained interruption would threaten its reorganization and future existence.

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


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