By James Pilcher
The Cincinnati Enquirer

After two negotiation sessions, Delta Air Lines' pilots union Wednesday said the airline's approach to getting reductions in pilot costs will not work.

In a statement to its members Wednesday, officials with Delta's branch of the Air Line Pilots Association said management's request to cut wages and get work rule concessions "is inconsistent with the (master executive council's) vision of pilot investment in the financial recovery of our airline."

The carrier says it needs to get concessions to survive financially.

The union also said three sticking points had emerged in the talks, which cover 8,500 Delta pilots, including more than 800 based at Cincinnati/Northern Kentucky International Airport, the airline's second-largest hub.

But while no new meetings are scheduled, union spokesman Mike Pinho said that the statement was not an indication that the issues would capsize any future talks.

"We are not walking away from the table," Pinho said in Cincinnati at the conclusion of a two-day meeting of union leaders.

The pilots union has negotiated with management for potential pay cuts the past three weeks, after the airline had suggested a 22 percent pay cut across the board and a freeze on future scheduled raises in May.

But Wednesday, union leaders said that for any talks to succeed, the current contract must be extended beyond its amendable date of 2005. In addition, the statement said the airline's "long-term debt problem" was a "Delta problem" and that the pilots should not be expected to lower wages to the levels of other airlines.

The airline lost $466 million in the first quarter. It posted a $184 million profit last quarter but would have lost $237 million without federal reimbursements and the sale of its share of a computer reservation company. The company expects to lose as much as $250 million during the current quarter.

Still, with nearly $3 billion in cash available, the airline is nowhere near bankrupt, which some observers say hurts Delta's bargaining position.

In a statement, Delta president and chief operating officer Fred Reid said the airline was disappointed that the union said the airline's current proposal was not acceptable to the pilots, but was hopeful that middle ground could eventually be reached.

"Perpetuating a cost structure that is noncompetitive is simply not sustainable," Reid said. "Competition in our industry continues to escalate. As ALPA's own analysis has acknowledged, Delta's cost structure is not competitive and the pilots must be part of the solution."

E-mail jpilcher@enquirer.com