The Air Line Pilots Association is appealing a U.S. Bankruptcy Court ruling in Delta Air Lines Inc.'s Chapter 11 reorganization case that granted the Atlanta-based carrier authorization to skip a $160 million required contribution to the pilots' pension plan in October, according to court papers. The union filed a notice of appeal Thursday with the U.S. Bankruptcy Court in New York. The appeal will be heard in U.S. District Court in New York, but there is currently no timetable for proceedings.
U.S. Bankruptcy Court Judge Prudence Carter Beatty issued an oral ruling Oct. 17, denying a motion filed Sept. 23 by the Delta Pilots' Pension Preservation Organization, which has about 1,800 retired Delta pilots as members. According to that motion, Delta "has unilaterally increased the risk of an involuntary termination" of its pension plans by the PBGC in "promising to skip" the airline's October minimum pension contribution. The judge signed an order denying the motion Oct. 28.
