Delta Pilots Approve Deal

Delta Air Lines pilots approved a new five-year contract that includes a 32.5% pay cut, fewer benefits, longer working hours, and additional job losses. With the pay cuts, Delta pilots will drop from the highest paid in the industry to the middle of the pack. For example, a first year pilot's pay will drop from $50,400 to $34,020, and a veteran pilot's pay will drop from $275,000 to $185,000. The pilots agreed to pay more for their health insurance and to allow the company to freeze their traditional defined-benefit pension plan and replace it with a 401(k) plan. In return for these concessions, pilots will be given options on 30 million shares plus future profit sharing and other incentives.