Delta debtor's flight attendant bargaining agreement rejection request draws Teamsters objection

By Caroline Salls

Pittsburgh, March 9 - Delta Air Lines, Inc. debtor Comair Inc.'s request to reject its collective bargaining agreement with its flight attendants drew an objection from the International Brotherhood of Teamsters, which called the request "a classic example of employer abuse of bankruptcy."

According to the objection filed Wednesday with the U.S. Bankruptcy Court for the Southern District of New York, Comair has failed to prove that it is entitled under bankruptcy law to reject the bargaining agreement.

"Comair seeks to reduce its flight attendants' pay rates and other benefits so it can enjoy the savings associated with those reductions," the objection said.

The union said the company's fundamental obligation is to show that its proposed $8.9 million in cuts to its flight attendants is essential for reorganization, which it has failed to do.

The Teamsters contend that because Comair is a full-service regional carrier, it relieves Delta of the costs associated with providing airline services with its mainline cost structure, thereby making it valuable to Delta.

In addition, the objection said that contrary to Comair's assertions, its financial statements reflect that it is a profitable carrier and the only document it relied on to show a loss for its operation is "a dubious table produced for the first time in this proceeding."

The union said this document only shows that Delta allocates a portion of its own inefficiencies and costs to the Comair operation and says nothing about Comair, "much less anything about its flight attendant pay rates."

Also, the Teamsters said Comair is attempting to reject the collective bargaining agreement "to undo a deal the carrier regrets - its flight attendant contract."

"But [the bankruptcy law] is not a vehicle for buyer's remorse," the Teamsters said in the objection.

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

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