Delta Air Lines Inc. asked a U.S. Bankruptcy Court judge Wednesday to void its contract with Delta's pilots' union so the beleaguered airline can impose deep wage and benefit cuts and avoid further financial erosion.
With several uniformed Delta pilots looking on in a standing room-only courtroom, Delta attorney Jack Gallagher said the airline valued its pilots and tried to negotiate reductions, but ultimately failed.
Delta is seeking to slash $325 million from its collective bargaining agreement with its pilots, saying the money is needed to keep its operations running. The, ALPA, which has offered $90.7 million in concessions, has threatened to strike if the court grants Delta's request.
In court papers filed Monday, Delta called a potential strike a "murder-suicide" that would eliminate every job at the company.
Delta pilots currently earn an average of $169,393 a year, according to a company bankruptcy court filing.
If the court approves the cuts, they would be on top of $1 billion in annual concessions the pilots agreed to in a five-year deal reached in 2004.