Delta Air Lines will not be placing its planned order for 60 Boeing and Embraer aircraft after its pilots union rejected a revised contract offer.
The airline’s CEO Richard Anderson confirmed on Wednesday (July 15) that the $4bn order for 40 new 737s and 20 used E190s will not go ahead because Airline Pilots Association (ALPA) members had voted almost two to one against the terms that had been negotiated with the union last month.
ALPA cited concerns that the addition of E190 aircraft as part of the carrier’s fleet renewal programme would result in a lower pay scale for pilots.
In better news for the Atlanta-based carrier, Delta has confirmed that it achieved better than forecast net profits of $1.4bn in Q2 2015, a year-on-year rise of 85 per cent.
During the quarter, Delta’s operational costs fell, including 16 per cent reduction in its fuel bill year-over-year to $2.4bn.