Delta pilots union OKs retirement incentive plan

Harry R. Weber

ATLANTA — Eligible Delta Air Lines Inc. pilots who elect to retire as part of an incentive program designed to reduce the number of pilots at the world's largest airline operator will receive up to nine months of severance pay and other benefits, according to the union.

Pilots with at least 10 years of service as of the end of this year and whose age and years of service added together equal at least 55 will have from Monday through July 15 to elect to participate.

The company has not said how many of its more than 12,000 pilots it hopes to cut, and neither the company nor the union has said how many pilots are eligible for the retirement incentive program.

The program was approved by the union's executive committee on Wednesday. According to a memo from the head of the pilots union to members, participating pilots with less than 20 years of service as of Dec. 31 of this year will receive six months of severance pay at 75 hours of pay per month. A pilot with 20 years or more of service as of the end of this year will receive nine months of severance pay at 75 hours pay per month.

Pilots have to have been on active payroll status for at least one day between Dec. 1, 2008, and Wednesday to be eligible.

Participating pilots who enroll in retiree or COBRA medical, dental and vision benefits will receive 100% company-paid coverage for the first three months following their retirement date with follow-on retiree coverage as provided by the union's pilot working agreement.

Other benefits also are available.

The union has said Delta management is offering the voluntary retirement program to address what the company perceives to be a current pilot staffing overage.

Delta, like other airlines, has cut capacity as the economy has weakened and demand for air travel has declined amid the recession. Delta has said it plans to cut international capacity by 10% starting in September.

The airline has cut other staff through voluntary severance programs.

Delta acquired Northwest Airlines last October.

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