05 March, 2006

Delta funnels money to Republicans but can't pay employees

Delta Air Lines, the nation's third-largest carrier, asked a bankruptcy court judge Friday to approve $3.9 million in payments to some of the airline's advisers.

The professional fees to Delta's auditors and advisers include a request to pay more than $1.8 million to the consulting firm of former New York City and possible Republican candidate for President in 2008, Mayor Rudy Giuliani.

The pilots union says it will strike if its contract is thrown out by a panel of arbitrators that will hold hearings starting March 13. Chief Executive Officer Gerald Grinstein, at a public event Friday, told reporters "Delta is cooked" and will not survive if the pilots strike.

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