Delta Deal Would Change Benefits, Pay

A tentative agreement with its pilots union that Delta announced Thursday would freeze the pilots’ defined-benefit plan and add a new defined-contribution plan, according to TheStreet.

TheStreet reports that the deal also “provides a 32.5 percent wage reduction from May 2004 levels, effective Dec. 1, with no increases for five years. Pilots will also receive about 30 million shares of Delta common stock, representing a 15 percent equity stake in the company.” In a statement issued Thursday, Delta said that it is “committed to the principle that employees will have an opportunity to share in any success their sacrifice helps make possible.”

Delta has already announced the elimination of 6,000 to 7,000 non-pilot positions. Delta CEO Gerald Grinstein says he’s doing what he can not to declare bankruptcy, but that there’s no guarantee it will be avoided.

Meanwhile, Delta is updating its cabin interiors; adding more flights from certain cities and cutting back from others; and growing the low-cost airline called Song that Delta started operating last year.