New York Delta Air Lines Inc. said late Sunday it has reached a tentative agreement with its pilots on a temporary 14 percent across-the-board wage cut, days after the pilots' union decided to ask its members to authorize a strike.
Together with other temporary cuts the sides agreed to that are equal to 1 percent of wages, the deal could save the bankrupt carrier more than $152 million a year.
The agreement requires approval from U.S. Bankruptcy Court in New York and is subject to ratification by the pilots no later than Dec. 28. Part of an effort to get a comprehensive deal over the next few months, it comes just days after the executive committee of the Air Line Pilots Assn. voted to ask its members to authorize a strike.
Because of the agreement, both sides will ask the bankruptcy court Tuesday to suspend the company's request to reject the pilots' existing collective bargaining agreement. The company wanted to reject the contract so it could impose $325 million in concessions on its pilots.