Pinnacle, pilots say they have labor deal

MEMPHIS, Tenn. (AP) -- Memphis-based Pinnacle Airlines Corp. and its pilots union say they have a tentative labor agreement that is crucial to Pinnacle's financial survival.

According to The Commercial Appeal, the Air Lines Pilots Association and the airline have agreed on cost reductions that include pay, retirement, work rules and benefits. The agreement is seen as key to Pinnacle emerging from Chapter 11 bankruptcy, which it filed April 1.

Terms were not announced. Pinnacle had initially sought $60 million annually in concessions, but the pilots union called the givebacks too drastic.

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