While both Delta Air Lines Inc. and Northwest Airlines Corp. filed for bankruptcy on the same day, so far both are having very different bankruptcy experiences.
Delta has been far more successful in securing concessions from labor unions than Northwest. However, Northwest is in a financially more attractive position as it has basically used bankruptcy to eliminate its unionized labor — at least among its mechanics.
On Wednesday, Dec. 28, Delta's pilots accepted a 14% cut in hourly pay, which will save the troubled airline about $143 million a year — less than half the concessions it had sought. About 52% of Delta's 6,500 pilots approved the concessions.
Two days later, roughly 56% of Northwest's mechanics voted against a settlement. The airline's 4,400 mechanics went on strike in August. The work stoppage was one of the factors that led to Northwest's September bankruptcy filing. The airline, however, kept operating during the strike by outsourcing its maintenance. The deal would have granted the mechanics 26 weeks of unemployment benefits, four weeks of layoff pay and payment of accrued vacation time. —Matthew Wurtzel
See story about Delta from The New York Times
See story about Delta from USA Today
See story about Northwest from Reuters
Continue reading below
