Delta Pilots: We Strike If No Contract

I realize it's been a while since my last post. Actually, over a month. I've been very busy with things and I hope that those of you who actually read this haven't forgotten this site.

In the past month, the fallout of Indy Air has led to higher ticket prices in some areas. But the big story is that United Airlines left bankruptcy on the first of the month. So they're free from the shackles of Chapter 11. We'll see how they do.

Big story today is, Delta pilots said they would walk out if the company rejected their new contract. Lee Moak, chairman of the union that represents Delta's pilots, said: "If our contract is rejected, we will strike." Can't put it more bluntly than that.

The company wants to impose $325 million in cuts, but the union will only settle for $115. Moak has instructed the opening of a strike center, too.

But Delta's pilots have threatened this before, so are they really serious this time? My guess: no. Both sides - union and management - have too much to lose. If they went on strike, Delta's CEO had said that the company would liquidate immediately.

That said, if they do strike, it would be a lot like Eastern Airlines in 1989: management imposed terms, union said no, pilots went on strike, Eastern went belly-up.