Oct. 24 -- Delta Air Lines Inc. and its pilots union recessed Sunday without reaching an agreement on pay cuts that are key to the carrier's effort to avoid filing for bankruptcy protection.
Union spokeswoman Karen Miller said the two sides will resume talks Monday in the Washington area.
The Atlanta-based airline says it needs $1 billion in concessions from its pilots, about two-thirds of which would come from pay cuts, to avoid filing for Chapter 11 bankruptcy protection. The pilots have publicly offered up to $705 million in savings.
On Oct. 8, the pilots union made a new proposal to management. It has not said if the offer includes a higher amount of concessions. However, in a regulatory filing a week later, Delta said that to date the union's "counterproposals have been for substantially less than $1 billion." The company also said in the filing that the union is seeking a stock option program for pilots that involves "substantially more equity" than management's proposal.
The company and pilots had been negotiating the last several days in south Florida.
Delta, the nation's third-largest carrier, said recently that even with the concessions it is seeking, it still may have to file for bankruptcy because of its heavy debt.
In a recent debt exchange offer in which Delta is trying to restructure some of its $20.6 billion in debt, the airline has encouraged creditors to respond before Tuesday. Some analysts believe Delta could file for bankruptcy soon. Delta has said that it has only weeks left to get the pilot concessions and restructure its debt to avoid bankruptcy.
Delta has lost more than $6 billion since early 2001 and has cut 16,000 jobs. Delta plans to cut up to 7,000 more jobs in the next 18 months. On Wednesday, the struggling airline reported a $651 million loss in the third-quarter.