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American Morning

Delta Deal: Pilots' Strike Averted

Aired April 23, 2001 - 10:10   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KYRA PHILLIPS, CNN ANCHOR: Well, the labor storm clouds that had gathered over Delta Air Lines have cleared. The airline has reached a tentative agreement with its pilots just a week before a strike deadline threatened to plunge the airline, and perhaps your summer travel plans, into limbo.

CNN's Patty Davis is at Reagan National Airport near Washington, where the two sides met for their latest round of talks. And she is going to update us -- hi there, Patty.

PATTY DAVIS, CNN CORRESPONDENT: Hi, Kyra.

Those storm clouds may have cleared for Delta, but analysts are saying that passengers may still get soaked -- that is because this, as they say, a very expensive contract. The Delta pilots now, if this contract is agreed to, will be the highest paid in the industry.

And passengers, analysts say, will end up paying most likely higher ticket prices on the way -- now, that tentative deal reached late yesterday here in Washington, D.C. The National Mediation Board, in the middle of those talks, was able to bring the two sides together -- that deal announced around early evening here in Washington, D.C.

Now, here's how it stacks up: The pilots at Delta will get some 24-34 pay hikes over the next four years -- that contract becoming amendable in 2005. Delta Express pilots -- that is the low-cost carrier at Delta Air Lines -- 63 percent pay hikes for those pilots through 2005. Also, pilots will see retirement, job security and vacation improvements.

The pilots union leadership is expected to take up the ratification over the weekend on Saturday -- after that, the 9800 members of the pilot's union expected to take it up sometime after that -- but I have to say that Delta Air Lines not yet out of the woods as far as strikes is concerned.

Of course, this agreement has to be ratified, first of all. But Comair is striking -- in its fourth week right now. Delta Air Lines owns Comair, although it is a subsidiary separately run by Comair -- now, that in its fourth week -- no sign of that letting up. However, this week, both sides Comair and its pilots' union will be meeting as well in Washington, D.C. with a National Mediation Board -- and, of course, both sides hoping they can bring this to an end.

Both they both have demands that they want met -- Leon, Kyra.

PHILLIPS: All right, Patty Davis, thanks so much.

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