Delta Pilots Retire As Wage Cuts Planned

Hatu

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Aug 20, 2002
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Pilot Retirements Hit Delta Air Lines As Company, Union Prepare New Wage Cut Proposals


ATLANTA (AP) -- Delta Air Lines' pilots union has been hit with another wave of retirements -- about 300 in June -- as its rank-and-file are expected to be asked by the struggling carrier to dig even deeper for concessions.

The pilot retirements -- many among those under the required retirement age of 60 -- leave the airline with about 7,500 active pilots after another 250 to 280 retired in September, union spokeswoman Karen Miller said.

The voluntary retirements come as Delta prepares to ask its pilots for more in wage, benefits and other job-related concessions as the airline works to avoid bankruptcy amid higher fuel costs and continued pressure from low-cost competitors.

http://biz.yahoo.com/ap/040706/delta_pilots_2.html
 
Probably a wise choice, especially if anticipated pay cuts slash the retirement "book rate."
 
A question, does a retiring pilot's lump sum come out of a pension fund or does it come out of the airlines cash at hand? I'm thinking pension fund , but someone on another board thinks this mass retirement will directly effect our cash on hand .
 
DalMD88 said:
A question, does a retiring pilot's lump sum come out of a pension fund or does it come out of the airlines cash at hand? I'm thinking pension fund , but someone on another board thinks this mass retirement will directly effect our cash on hand .
You are correct Dal, the money does not come out of cash on hand. If does come out of a pesion fund which is adequately funded.
 
Luv2fly is right...the lump sum comes from the pension. However, these mass retirements do have an effect on cash because of the cost to retrain pilots as they bump up to fill all the open slots.
 
A question, does a retiring pilot's lump sum come out of a pension fund or does it come out of the airlines cash at hand? I'm thinking pension fund , but someone on another board thinks this mass retirement will directly effect our cash on hand .

It comes out of the pension fund, so it doesn't directly come from cash.

However, there is an indirect effect insofar as pilots retiring early means more money in the near-term comes out of the pension fund, which may mean that DL has to put more cash into the pension fund to keep it adequately funded for future retirees.

So, the answer is no it does not directly impact cash, but yes there clearly is an indirect effect.