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Last Updated: Wednesday, 1 March 2006, 23:11 GMT
No agreement on Delta pay issue
Airport screen showing Delta logo
Delta is the third-largest carrier in the US
Pilots and Delta Airlines have missed the Wednesday deadline set for them to reach a long-term deal on pay and benefit cuts.

In December, pilots voted to approve a 14% pay cut to help the bankrupt carrier survive a cash shortage.

Delta filed for Chapter 11 bankruptcy protection last year, and said the wage measure would save $143m (83m) a year.

However, a long-term pay deal was meant to follow. The issue will now go to a three-strong arbitration panel.

The arbitrators will hold two weeks of hearings in Washington from 13 March and decide whether to grant Delta's request to tear up its contract with its pilots.

The Atlanta-based airline, the third-largest in the US, says it would then be able to impose $325m in cuts.

Pilots are threatening to strike if their current deal is thrown out.

The two sides have agreed to arbitration instead of letting the bankruptcy court make the decision.

After the arbitrators have taken evidence, they will then have several weeks to make a decision.


SEE ALSO:
Delta pilots agree to 14% pay cut
28 Dec 05 |  Business
Red ink spreads at bankrupt Delta
01 Dec 05 |  Business
US airlines make bankruptcy move
14 Sep 05 |  Business
Skies clear for US airline merger
12 Sep 05 |  Business
Delta to sell Atlantic for $425m
15 Aug 05 |  Business
Delta dives on bankruptcy fears
09 Aug 05 |  Business


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