Delta Pilots Warned of 'Liquidity Shortfall'
By Keith L. Alexander
Washington Post Staff Writer
Saturday, August 20, 2005; Page D01

Leaders of Delta Air Lines' pilots union yesterday alerted members that the airline's cash levels had fallen to a point that could prompt the carrier to seek additional concessions, the latest sign that the nation's third-largest airline is edging closer to Chapter 11 bankruptcy protection.

Last fall, Delta's 6,000 pilots agreed to $1 billion in pay and benefit cuts to help the airline avoid a filing for bankruptcy protection. As part of that agreement, the airline said it would not seek additional concessions or make changes to the pilots' pension unless its financial level deteriorated below a certain threshold for two consecutive months. This week, Delta notified the pilots that the threshold had been reached for the two-month period.