ATLANTA, May 31, 2006 – Delta Air Lines (Other OTC: DALRQ) has reached an agreement with DP3, Inc., an organization representing retired pilots on pension issues, thereby removing one of only two objections to Bankruptcy Court approval of Letter of Agreement 51 (LOA 51), the contract that was ratified by Delta pilots today.
“Delta is pleased that the concerns of the retired pilot group were able to be satisfactorily resolved between the parties and that DP3 has withdrawn its objection to what is an essential component of Delta’s ability to successfully restructure,” said Edward H. Bastian, Delta’s executive vice president, chief financial officer and head of the company’s in-court restructuring efforts. “We recognize that Delta retired pilots, all of whom have made a contribution to this company, are impacted by our restructuring. It is a regrettable but necessary component of Delta’s transformation, and affects all Delta people and stakeholders,” Bastian said.
As part of the DP3 agreement, which is subject to bankruptcy court approval, Delta will provide to retired pilots an administrative claim of $9 million. The claim accounts for a portion of non-qualified pension plan benefits accrued from the date of Delta' bankruptcy filing until the termination of such benefit. Unsecured pre-petition claims for the remainder of the accrued benefits up to the date of termination also are allowed. Retired pilots will receive notice of the proposed agreement and its terms and, as creditors, an opportunity to file a claim at a later date.
With the DP3’s concerns resolved, the Pension Benefit Guaranty Corporation (PBGC) is now the sole objector to the pilot contract among Delta’s tens of thousands of creditors and other stakeholders. Delta strongly disagrees with the federal pension agency’s assertions and believes they are without merit.
Delta Air Lines (Other OTC: DALRQ) is one of the world’s fastest growing international carriers with more than 50 new international routes added or announced in the last year. Delta offers flights to 447 destinations in 96 countries on Delta, Delta Shuttle, the Delta Connection carriers and its worldwide partners. In summer 2006, Delta plans to offer customers more destinations and departures between the U.S., Europe, India and Israel than any global airline*, including service on 11 new transatlantic routes from its Atlanta and New York-JFK hubs. Delta also is a major carrier to Mexico, South and Central America and the Caribbean, with nearly 40 routes announced, added or applied to serve since Jan. 1, 2005. Delta's marketing alliances also allow customers to earn and redeem SkyMiles on more than 14,000 flights offered by SkyTeam and other partners. Delta is a founding member of SkyTeam, a global airline alliance that provides customers with extensive worldwide destinations, flights and services. Customers can check in for flights, print boarding passes and check flight status at delta.com.
*From the U.S., based on July 2006 OAG.