Delta retirees request appointment of official non-pilot retiree committee

By Caroline Salls

Pittsburgh, Sept. 23 - Delta Air Lines, Inc.'s retirement committee requested appointment of an official committee of Delta Air Lines, Inc.'s non-pilot retired employees for Delta's Chapter 11 case, according to a Thursday filing with the U.S. Bankruptcy Court for the Southern District of New York.

According to the motion, in pre- and post- bankruptcy negotiations with the committee, Delta said it intends to modify its non-pilot retirees' medical benefits.

"Furthermore, Delta personnel have repeatedly stated they expect to make substantial changes to non-pilot retiree health benefits and that Delta will seek authorization from this court to refrain from paying $135 million in October 2005 required contributions to the non-pilot retirees' defined benefit plan," the motion said.

According to the filing, the Pension Benefit Guaranty Corp. has said that Delta's defined-benefit pension plan is already underfunded by more than $10 billion.

"The non-pilot retirees bear the economic consequences of these reductions in benefits and the economic risk in the event the pension plan is terminated, and they should have representation," the committee said in the motion.

A hearing is scheduled for Oct. 6.

Delta, an Atlanta-based airline, filed for bankruptcy on Sept. 14. Its Chapter 11 case number is 05-17923.

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