Atlantic Coast Pilots Agree to Wage Cuts By Amy Joyce Washington Post Staff Writer Wednesday, June 25, 2003; Page E03 Atlantic Coast Airlines pilots accepted a contract Monday night that would cut pay but increase some benefits. Dulles-based Atlantic Coast, which runs regional service for United and Delta airlines under the United Express and Delta Connection brands, said the wage cuts were necessary to make Atlantic Coast competitive. United, its biggest customer, is in Chapter 11 bankruptcy reorganization and has sought to reduce the costs of maintaining a regional carrier. The pilots' contract, which decreases the salaries of Atlantic Coast's 1,700 pilots by 7.5 percent, will go into effect after Atlantic Coast and United Airlines renegotiate their relationship. Atlantic Coast is paid a set fee by United and Delta for each departure, regardless of how many tickets are sold or at what price. United is paying Atlantic Coast its 2002 rates until a new deal is made. The regional carrier began to cut costs by layoffs and other methods in April in response to United's financial situation. About 85 percent of Atlantic Coast's business is with United, with flights mostly out of Dulles International Airport and Chicago's O'Hare International Airport. The five-year contract was ratified to make Atlantic Coast more attractive and competitive to United, said Christopher Thomas, an Atlantic Coast pilot and head of Atlantic Coast's branch of the Air Line Pilots Association. In addition to cutting salaries, a three-year agreement increases Family and Medical Leave Act benefits and assistance for pilots on military leave. "What this contract does is allow the pilot group and the company to be better positioned. It buys us some job security and also helps position the company and pilot group for future growth," Thomas said. Pilots with other airlines, including Atlantic Coast's potential competitors for United's business, have "significantly lower wages," he said. In April, Atlantic Coast said it would cut 330 jobs and reduce the base pay of salaried employees by as much as 10 percent. The company also reduced management salaries and eliminated bonus programs. The new contract is "just another step we're taking" to cut costs and stay in the race for contract bids with United, Atlantic Coast spokesman Rick DeLisi said. "It brings our costs in line with the expectations that United has expressed to us and puts us in competition with the others in the United Express proposal process." The new contract "definitely puts ACA in a much more competitive position," DeLisi said. *************************************************** The owner of Roger's Trinbago Site/TnTisland.com Roj (Roger James) escape email mailto:ejames@xxxxxxxxx Trinbago site: www.tntisland.com Carib Brass Ctn site www.tntisland.com/caribbeanbrassconnection/ Steel Expressions www.mts.net/~ejames/se/ Mas Site: www.tntisland.com/tntrecords/mas2003/ Site of the Week: http://www.carib-link.net/naparima/naps.html TnT Webdirectory: http://search.co.tt *********************************************************