Delta plans request to end pilots’ pensions

ATLANTA — Delta Air Lines Inc. will file a request Monday to terminate its pilots’ pension plan, the company’s chief executive said Friday. But the nation’s third-largest carrier still holds out hope pension reform will save other employees’ retirement plans.

In a letter to U.S. Sen. Johnny Isakson, that also was sent to other members of Congress, Delta CEO Gerald Grinstein said Delta will ask that the pilots’ pension be terminated effective Sept. 2. UAL Corp.’s United Airlines, the nation’s No. 2 carrier, did the same thing when it was in bankruptcy protection.

The move was expected and Grinstein said the Atlanta-based airline is still seeking pension reform in Congress, though he acknowledged it will have to happen soon if other employees’ pensions are to be preserved.

“The unfortunate reality is that even if a pension reform bill containing airline relief passes, unless the pilot plan is terminated, Delta cannot successfully restructure and emerge from bankruptcy,” Grinstein wrote.

Once the notice is made to the Pension Benefit Guaranty Corp. on Monday, the company will seek approval by a judge. There likely will be objections, though the pilots, for their part, have agreed not to object.