NYTimes.com Article: Delta Explores Options, Hopeful on Pilots

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Delta Explores Options, Hopeful on Pilots

September 13, 2004
 By REUTERS





Filed at 2:42 p.m. ET

NEW YORK (Reuters) - Delta Air Lines Inc. (DAL.N) said on
Monday it is meeting with bankruptcy lawyers to prepare in
case the carrier needs to file for bankruptcy protection,
but added that recent talks with pilots make it hopeful a
pilot agreement can be reached later this week.

Delta is struggling with rising jet fuel prices, high labor
costs and expensive borrowing costs at the same time it is
losing business to low-cost domestic carriers like
Southwest Airlines Inc. (LUV.N). The nation's No. 3 air
carrier has announced job cuts, tried to renegotiate debt
and has been in concession talks with pilots for more than
a year.

Chief Executive Officer Gerald Grinstein said he is hopeful
the struggling airline can reach an agreement with its
pilots by the end of the week on the issue of early pilot
retirements. Grinstein was speaking at an airline alliance
conference in New York.

The ``tone of discussions'' with pilots has made Grinstein
believe that an agreement could be reached by that time,
Delta spokesman Todd Clay told Reuters.

Delta shares jumped 26 cents, or 6.8 percent, to $4.08 in
mid-afternoon trading.

Still, the company is meeting with bankruptcy lawyers in
case bankruptcy protection is needed, a spokesman told
Reuters.

``We want to be prepared in the event we have to file,''
Delta spokesman Dan Lewis told Reuters. ``We are doing what
is prudent.''

http://www.nytimes.com/reuters/business/business-airlines-delta.html?ex=1096103339&ei=1&en=1b43c984cbf6e257


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