Delta CFO takes hard line on pilot pay cuts

WASHINGTON — Delta Air Lines Inc. won't lower the amount of concessions it is seeking from its pilots any further but would be willing to discuss concerns pilots have about the possible termination of their defined benefit pension plan, the carrier's chief financial officer said in an interview Thursday.

CFO Edward Bastian, following the fourth day of two weeks of hearings before an arbitration panel that will decide whether to allow the company to throw out its pilot contract, made the most definitive statement to date about what Delta is willing to accept and what it isn't.

The comments came even as the chairman of the union's executive committee, Lee Moak, said in a separate interview with The Associated Press that anyone who doubts the pilots' resolve to strike if their contract is voided is mistaken.

The "$305 million is non-negotiable because that's what our minimum needs are to survive as a company," Bastian told AP. Regarding the pilots' pension and other changes, "those are things to be discussed in the room. There is no magic number," Bastian said.

The nation's third-largest carrier, which operates a hub at Salt Lake City International Airport, had requested $325 million in pay and benefit cuts but agreed to reduce the amount if the pilots reach a consensual agreement.

Pressed on whether his position could lead to a strike that would doom the Atlanta-based airline, Bastian said, "It's a serious situation. I don't want to downplay the significance of this."

But he added, "I strongly believe Delta will be here 30 days from now. It's on the back of everyone's mind obviously, but the reality is I believe we will figure this thing out."

The arbitration panel must decide on Delta's motion to reject its pilot contract by April 15.

The company and union have not had any negotiation sessions since the hearings in Washington began on Monday. While both sides say they are willing to meet, no sessions have been scheduled. Top union and company officials have been staying in the same hotel.

"It takes two parties," Bastian said. "We're here and they know where we're at."

Moak, in an interview, said the company should take the union's stance seriously and be more open to negotiations on all terms being discussed.

"If management's action is to destroy the airline, I can't control them," Moak said.