Links Of Interest

Retiree Connection Home
	Delta Pioneers
	DECU
	DeltaNet Access
	Retiree Links
	Contact Us

Please check this page regularly. Questions and answers will be updated as the process continues and more information is available.

Q1. Why are changes being considered to Delta’s retiree healthcare benefits?
A1. First, considering changes to retiree healthcare benefits is fair and equitable. A key principle underlying this process is that all stakeholders, including Delta active and retired employees and survivors, must contribute toward the level of cost savings the company needs in order for Delta to successfully restructure and emerge from bankruptcy. As such, we are considering the level of cost savings needed from our retiree healthcare benefits in the context of sacrifices already made by other Delta stakeholders.

Second, considering changes to retiree healthcare benefits is consistent with the market-competitive approach Delta is using with all of its other cost-reduction changes across every other aspect of its business. Currently, Delta retirees in general enjoy one of the most generous healthcare benefit programs in the industry. As we make progress in our restructuring, Delta’s retiree healthcare benefit costs also must become competitive with our industry peers, just as our active employee costs were reduced and adjusted to become market-competitive.

Q2. What is the process for determining the changes?
A2. The bankruptcy court appointed two retiree committees (one representing retired pilots and survivors, one representing retired ground and flight attendant employees and survivors) to work with the company to consider and agree upon changes to Delta’s retiree healthcare benefits. If we are unable to reach agreement, we will ask the court to review the issue this fall. To support Delta’s plan to emerge from bankruptcy in the first half of 2007, our intent is to make the changes effective January 1, 2007.

Q3. What level of savings is being sought from changes to Delta’s retiree healthcare benefits?
A3. We are going to refrain from discussing specifics at this time out of respect for the process currently underway and in order to minimize confusion. Our intent is to work collaboratively with the retiree committees to agree upon the changes to healthcare benefits. However, in the most general of terms, the level of savings being sought is fair and equitable within the context of the sacrifices being made by other Delta stakeholders, and is designed to make these costs more competitive among our industry peers. Becoming market competitive in every element of our cost-structure is a critical component of successfully emerging from – and staying out of – bankruptcy. Our goal is to minimize the impact to Delta retirees where feasible while realizing the cost savings the company needs.

Q4. What changes are being considered and how will I be affected?
A4. While we are going to refrain from discussing specifics at this time, there are some important points to keep in mind in terms of how the changes being considered may or may not affect you:

• We are not proposing a total elimination of retiree healthcare benefits
• We do intend to continue to provide everyone with access to plans that guarantee an opportunity to purchase health insurance, including insurance supplemental to Medicare coverage
• While Delta can no longer afford to subsidize benefits at the same levels as we have in the past, we do intend to provide some subsidies based on specified criteria
• We do not plan to make any changes to basic and/or optional life insurance and survivor income benefits at this time
• We do intend to leverage social programs such as Medicare

In sum, we are trying to minimize the impact to Delta retirees by attempting to recognize and accommodate the wide range of circumstances and varying needs for coverage among our retiree and survivor population, while at the same time realizing an equitable contribution toward the cost savings Delta needs to successfully restructure.

Q5. When will I be informed of the details and how these changes will affect me?
A5. We appreciate that it is unsettling to know changes are being considered to your healthcare benefits and not know what they are. In order to minimize confusion and because it is our preference to reach agreement about the changes with the committees through a collaborative process, we think it is best to refrain from providing specifics before they have been determined. Rest assured, we will provide you with complete and detailed information as soon as it is appropriate. In the meantime, we will continue to update Retiree Connection.

Top

Back to Home