Delta Air Lines CEO praises pilots' willingness to talk

ATLANTA — Delta Air Lines chief executive Gerald Grinstein said Friday pilots' willingness to renew wage cut talks is a "positive sign" the financially struggling company can get the concessions it needs to avoid bankruptcy.

Grinstein told The Associated Press no new negotiation sessions have been scheduled, but he is optimistic they will take place soon, given a pilots' union memo this week alluding to the possibility.

"I think the statement they made is a sign they realize how serious the situation is," Grinstein said.

Speaking in an interview at the Atlanta-based company's 75th anniversary celebration, Grinstein said the nation's third-largest airline is working hard to stave off bankruptcy.

"It's the last choice," he said. "It's not part of something you want to do. You hope everyone can take a sensible course and we avoid it."

On Thursday, Delta's pilots union said in a memo that it has instructed its negotiating committee to seek new talks with the carrier's management to break an impasse on wage concessions.

"As has been reported, Delta is under considerable pressure due to increasing fuel costs and declining yields," the Air Line Pilots Association told its members.

The two sides have not had formal negotiations since late January.

Delta is seeking a 30 percent wage cut, while pilots are offering 9 percent and to forego a 4.5 percent raise they received in May. Delta pilots make between $100,000 and $300,000 a year, according to the airline.

Union leaders said in the memo that any deal will depend on a "comprehensive financial restructuring plan to include all of Delta's other stakeholders."

Grinstein would not say Friday whether Delta would be willing to compromise on its position to get a deal done. But, he said he believes the airline will pull through its current financial crisis.

"This is an industry that has gone through a whole lot of cycles," Grinstein said. "This company is the one that will be able to make it through."

Delta has lost more than $3 billion and laid off 16,000 employees in the last three years. Analysts believe it has six to nine more months to get a deal with pilots or face bankruptcy.

Shares of Delta closed up 37 cents, or 6.3 percent, at $6.24 in trading on the New York Stock Exchange.