Delta pilots union OKs buyout plan - Atlanta Business Chronicle:

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In a Wednesday memo to pilots, Delta pilotzs union chairman Lee Moak said eligiblre pilots who elect to retire couldx receive up to nine month pay and benefitx as part ofan early-exit program. Delt and its subsidiary have acombined 12,000 Delta has not said how many pilots it needx to cut. “Delta continuezs to take every step possible to avoide involuntary reductions of frontline employees as a resulr of currenteconomic conditions," Delta spokeswomanj Susan Chana Elliott said in an e-mail "In addition to the voluntary programsa previously offered to other employees, Delta is offerinfg a voluntary retirement prograjm to our pilots.
” Earlier this Moak said Atlanta-based Delta (NYSE: DAL) had approached the uniomn with a proposal for an early-exit plan for an unspecifie number of pilots. To be pilots have to have at least 10 years of service asof Dec. 31, and theitr service and age added togethee mustequal 55. The enrollment window will last between June 1 andJuly 15. Pilotw with 20 years or more of servic e will be eligible for nine months severancew pay at 75 pay hours per Pilots with less than 20 yeares will be eligible for six months severance at 75 pay hours per Pilots opting or retiree or COBR healthcare plans will receive 100 percent coverage paid by Delts forthree months, which will convert to retiree coverage under union rules.
Pilotsa will also be eligible for travel andother benefits. Moak said in the Wednesda y memo that Delta expectsall early-retiremenr enrollees to leave the company by year end, but Delts will have the authority to keep pilots throughb May 31, 2010, “basedf on operational needs.” Airlines across the globe have struggleds to match capacity with declining demand in the wake of the Delta and other U.S. carriers have slashed domestic and internationa capacity as demandhas waned, and Delta has previously announced plans to cut additional 7 percenr to 9 percent of its international capacity starting in September. Delta’s passengert traffic dropped 7.
7 percent in April compared to April but load factors generallyleveled out. Delta has cut abouf 6,500 jobs throughout the company through voluntarhy buyouts andearly retirements, but pilots have not previouslt been included in earlier job reduction programs. About 2,50o employees who opted for the latesft buyout program are set to leave Delta aftere the busy summertravelp season, airline officials have said.