Delta Says Prospects Poor in Labor Talks

Delta Air Lines Inc. said prospects for reaching a contract with its pilots union before the end of their cooling-off period are bleak, and suggested a Presidential Emergency Board may be needed to settle the dispute. The No. 3 U.S. airline, which resumes federally mediated talks with the Air Line Pilots Assn. next week as an April 29 cooling-off period expiration nears, said in a news release that the economic difference between its and the union proposals was $1.7 billion. Delta and the union have been negotiating for about 19 months. The pilots, mindful of a 1996 concessionary pact, are seeking improvements in compensation, retirement, pay scales at the Delta Express low-fare unit and job security. Delta said its proposal adds about $2 billion in costs to the airline over the next four years, whereas ALPA’s proposal would add $3.7 billion. “ALPA’s stated requirements for contract improvements do not provide a framework for a reasonably affordable negotiated settlement,” Delta said. The airline said President Bush could appoint a Presidential Emergency Board to help broker a settlement. Delta shares closed down 97 cents at $41.04 in NYSE trading.