In re: DELTA AIR LINES, et al., Debtors., 342 B.R. 685

Summary

Debtor obtained concessions from the unions for its pilots and its mechanics and proposed a nonnegotiable agreement to the union for its flight attendants, which was rejected. The court held that debtor failed to comply with its obligation under § 1113(b)(2) to confer in good faith in attempting to reach mutually satisfactory modifications because it steadfastly maintained that its initial proposal was nonnegotiable. The court also held that debtor failed to sustain its burden of demonstrating that its proposal was fair and equitable under § 1113(b)(1)(A) because debtor's nonnegotiable demand was that the attendants contribute twice their pro rata share of the cost cuts, while the pilots and mechanics were asked for less than their proportionate shares. The court further held that it could not find that the union did not have good cause to reject the proposal, in light of the disproportionate share of the employee sacrifice requested of the attendants and the strong likelihood that ...