Delta Tries To Dump Pensions
Delta Air Lines will try to dump its dysfunctional employee pension program on the beleaguered Pension Benefit Guaranty Corp. effective Sept. 2. The bankrupt airline intends to apply to the courts to rid itself of the costly burden today. Delta's pensions are believed to be under-funded by about $10 billion. The move has been expected for some time and Delta's pilots have already said they won't oppose it. Word of the action came in a letter from Delta CEO Gerald Grinstein to Georgia Republican Sen. Johnny Isakson on Friday. "I want to be sure you are aware of a necessary but difficult step Delta must take, why that step is essential to the long-term survival of our company," said Grinstein's letter. Isakson is backing a pension reform bill that Delta and other airlines have been pushing.