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Delta delays 777 orders
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June 11, 1999: 8:15 p.m. ET
Atlanta-based carrier, with no pact from its pilots, delays Boeing delivery
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NEW YORK (CNNfn) - Delta Air Lines delayed delivery of 11 Boeing 777 aircraft Friday because the carrier couldn't reach a deal with its pilots about how much Delta would pay them to fly the new planes.
Atlanta-based Delta (DAL), the nation's third-largest carrier, decided to hold off the $1.4 billion order from Boeing because of a high cost of keeping planes inactive if the airline and the Air Line Pilots Association can't hammer out an agreement.
"I regret the action Delta has had to take," said Delta Chief Executive Leo Mullin in a statement. "The 777 was an integral part of our fleet plan."
Airlines and their pilots must reach agreement about salaries every time a new plane comes on line. The union threatened to stop flying 777s in November if a deal couldn't be reached, Delta said.
The airline also said uncertainty about scheduling use of the planes -- often carried out months ahead of actual flying -- could inconvenience customers.
Delta said it is offering pay rate that leads the industry for 777 pilots, at five percent higher than the rate paid by No. 2 American Airlines and some 25 percent higher than United Airlines, the nation's biggest carrier.
The 777 is Seattle-based Boeing Co.'s (BA) newest passenger airplane. Delta received two of a scheduled delivery of 13 Boeing 777 in March.
In a statement Delta said that "substitute arrangements" will be pursued, but it did not specify what.
Shares of Delta fell 1/4 to 57 on the New York Stock Exchange Friday.
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Delta Air Lines
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