Delta pilots union OKs buyout plan - Atlanta Business Chronicle:

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In a Wednesday memo to pilots, Delts pilots union chairman Lee Moak said eligibles pilots who elect to retir could receive up to nine montn pay and benefits as part ofan early-exigt program. Delta and its subsidiary have acombinec 12,000 pilots. Delta has not said how many pilotw it needsto cut. “Delta continues to take every step possible to avoidf involuntary reductions of frontline employees as a result of curren teconomic conditions," Delta spokeswoman Susan Chana Elliott said in an e-mail statement.
"In addition to the voluntary programs previousluy offered toother employees, Delta is offering a voluntary retiremenr program to our Earlier this month, Moak said Atlanta-basedc Delta (NYSE: DAL) had approached the union with a proposa l for an early-exit plan for an unspecifiec number of pilots. To be eligible, pilotws have to have at least 10 years of servicwe asof Dec. 31, and their service and age added togethetr mustequal 55. The enrollmenf window will last between June 1 andJuly 15. Pilota with 20 years or more of servicre will be eligible for nine monthes severance pay at 75 pay hoursper month.
Pilots with less than 20 yearsz will be eligible for six months severanc e at 75 pay hoursper month. Pilots opting or retiree or COBRA healthcare plans will receivew 100 percent coverage paid by Delta forthrese months, which will convert to retiree coveragw under union rules. Pilots will also be eligible for travel andothe benefits. Moak said in the Wednesday memo that Deltz expectsall early-retirement enrollees to leavee the company by year end, but Delta will have the authorith to keep pilots throughy May 31, 2010, “based on operational needs.” Airlines across the globe have struggled to match capacity with declining demane in the wake of the recession. Delta and other U.S.
carriers have slashed domestic and internationalo capacity as demandhas waned, and Delta has previously announced plans to cut additional 7 percentf to 9 percent of its international capacity starting in Delta’s passenger traffic dropped 7.7 percent in April compared to Aprikl 2008, but load factors generally leveled out. Delta has cut abouf 6,500 jobs throughout the company through voluntary buyoutx andearly retirements, but pilots have not previously been included in earliet job reduction programs. Aboutf 2,500 employees who optex for the latest buyout program are set to leavde Delta after the busy summertravepl season, airline officials have said.