Administration November 28, 2006

Delta Adds $719M in Claims for Retired Pilots

November 28, 2006 (PLANSPONSOR.com) - Delta Air Lines has agreed to give its retired pilots an extra $719 million in unsecured US Bankruptcy Court claims to help them recoup losses from the termination of the pilot pension plan.
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The agreement would increase the retired pilots’ unsecured claims to roughly $800 million if approved by a Bankruptcy Court judge in New York City, the Associated Press reported. Delta says the claims will help make up some of the pilots’ lost non-qualified pension benefits (See  Delta Pushes for Pension Termination ).

The retired pilots’ claims are separate from a $2.1 billion unsecured claim Delta’s active pilots negotiated as part of a concessions agreement reached in April, Delta spokeswoman Betsy Talton said.

Delta has said it plans to file its reorganization plan by next month. It said it hopes to emerge from Chapter 11 by the middle of next year.

Management and the pilots union have both expressed opposition to Tempe, Arizona-based US Airways Group Inc.’s hostile bid to buy Delta in a deal now worth $8.6 billion.

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