Pilots of ATA Airlines, Indianapolis, approved a tentative agreement with the airline that would cut company contributions to a flight crew retirement plan by 50% for about four months, said Rusty Ayers, spokesman for the ATA master executive council of the Air Line Pilots Association.
The voting period begins today and expires Jan. 10, Mr. Ayers said. The agreement, if ratified, would be temporary and remain in effect for 120 days. A statement issued by the pilots union said the pact would give the airline and its pilots union "time to negotiate contractual changes that may be deemed necessary after the post-bankruptcy routes and structure of ATA are determined." The agreement, which also calls for pay cuts, could provide ATA with up to $6 million in immediate cost savings, the statement said.
ATA filed for Chapter 11 bankruptcy protection in October in the U.S. Bankruptcy Court in Indianapolis. Officials at the airline did not return calls seeking comment Thursday.