Delta Air Lines announced earlier this week that it was notifying the federal Pension Benefit Guaranty Corporation, that it intended to end its pilots’ pension plan. Effective Sept. 2, Delta wishes to terminate the defined-benefit plan — which provides employees with a monthly payout based on their salary.
With federal approval and that of the Bankruptcy Court it would save Delta $1 billion near term.
Delta, operating under bankruptcy protection, is trying to generate $3 billion a year in cost cuts and revenue increases. It reached an agreement with its pilots in April for a new contract, which saves it about $280 million a year and includes a provision for certain payments to pilots if the pension plan is terminated.
