Delta may offer deal on pilot pensions

Delta Air Lines Inc., struggling to avoid a bankruptcy filing, may reach an agreement this week with pilots to prevent retirements that would disrupt flights, chief executive Gerald Grinstein said Monday.

"We are in discussions with the pilots union over the issue, and hopefully we will reach a conclusion by the end of the week," Grinstein told reporters in New York.

Delta's Air Line Pilots Association, which represents 7,500 employees, said its top council is meeting this week on the issue.

If too many pilots take retirement this month before the federal mandatory age of 60, Delta may have to ground larger planes because of a shortage of qualified cockpit crews, the chief executive said last week. Such flight disruptions may contribute to pushing the airline into bankruptcy, he said then.

Some pilots at Atlanta-based Delta, the third-largest U.S. carrier and operator of a hub at Salt Lake City International Airport, have wanted to retire before the mandatory age to secure a lump-sum payout on their pension benefits. Delta is negotiating for $1 billion in concessions from the pilots to help avoid Chapter 11 bankruptcy.

US Airways Group Inc., which Sunday filed for bankruptcy protection for the second time in two years, terminated its pilot pensions last year, leaving a majority of pilots with less than half their benefits. UAL Corp.'s United Airlines, which also is in bankruptcy, said last month that it probably will scrap its pension plans.

Grinstein spoke at an event marking the expansion of Delta's SkyTeam international alliance. SkyTeam is adding Continental Airlines Inc., KLM Royal Dutch Airlines and Northwest Airlines Corp.

Delta shares rose 31 cents, or 8.1 percent, to close at $4.13 Monday on the New York Stock Exchange.