Delta Air, Pilots in Pension Deal

Delta Air Lines (DAL Quote) may have solved a crisis related to the early retirement of pilots, but winning $1 billion in wage concessions won't necessarily be so easy.

The struggling airline and its pilots union late Monday reached a tentative agreement on early retirement that allows the airline to recall pilots to ensure operations are not disrupted. With Delta warning it may have to file for Chapter 11 bankruptcy protection, senior pilots who fly the largest aircraft have been leaving, opting for a hefty lump-sum payment.

Under the tentative agreement, Delta's pilots will let the carrier recall retired pilots in exchange for pension plan protection, specifically that Delta management won't try to terminate the pilots' pension plan before Feb. 1, 2005, even if it has already filed for Chapter 11. ...