The United State’s No. 3 airline has promised its employees they will be rewarded when the carrier emerges from bankruptcy later this Spring. After a series of deep pay and benefit cuts since 2004, Delta Air Lines employees are about to get improved pay and cash bonuses. The airline sent a letter to all employees in early March that outlined broad outlines of what they might expect when the Atlanta-based carrier emerges from bankruptcy status. Delta’s letter did not cite any specifics regarding the augmented pay or the size of the cash bonuses or stock grants being planned. However, the airline did disclose that it would be instituting a profit sharing plan to distribute 15 percent of its pre-tax income.

In the letter, company officials also described how all employees would receive a lump sum cash bonus equal to a percentage of their pay once the airline emerges from bankruptcy. Employees will also receive a grant of unrestricted stock that they will be able to sell without restrictions. The airline's 1,000 top executives will be granted restricted shares, options and performance shares. The company said the pool of money that Delta has allocated for merit pay raises would be distributed based on performance and current pay position. There will also be new retirement benefits into defined contribution plans. The company terminated the traditional pension plans for pilots while it was in bankruptcy. More than 80 percent of Delta's employees are not union members.

“We're moving towards an industry-standard pay structure to ensure your pay rate becomes and remains competitive with network and low-cost carriers, including American, United, AirTran, JetBlue and Southwest,” said the company's letter. “While we won't be able to do that all in one step, we'll take the first step in that direction this summer - and officers and directors won't have any across-the-board pay increases until all those steps are complete,” the letter continues.

Delta imposed or reached concession contracts with unions that saved $1.6 billion in labor costs in 2004 as it struggled to avoid bankruptcy, but a year later rising fuel costs forced it into bankruptcy court. While in bankruptcy, it won or imposed an additional $930 million a year in labor cost cuts. Delta had 55,700 employees as of its most recent filing with the bankruptcy court.

See For Yourself
We invite you to enjoy the accompanying selection of video scenes showcasing Delta Airlines jets in action. The footage was filmed at the carrier’s home base (and one of the World’s busiest airports) at Atlanta’s Hartsfield-Jackson International Airport. Enjoy this video courtesy of Airsidetv.com