BULLETIN: Delta Air Lines Inc. Pilots' Approval Of Contract Does Not Affect Rating May 06
- ID: 1929498
- May 2006
- Standard & Poors
NEW YORK (Standard & Poor's) May 31, 2006Standard & Poor's Ratings Services said today that its rating on Delta Air Lines Inc. (D/--/--) is not affected by the members of Delta pilots' union ratification of a concessionary contract, averting a potential strike and advancing the airline's goal of reorganizing in bankruptcy. The new contract, which is intended to save Delta $280 million annually (part of approximately $900 million of total labor savings), must still be approved by the bankruptcy court. The Pension Benefit Guaranty Corp. is opposing the new contract, because pilots agreed not to oppose termination of their pension plan, in return for $650 million of new unsecured notes issued upon the airline's emergence from Chapter 11. If the...
Companies mentioned in this report are:
- Delta Air Lines Inc.
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