The pilots' union at bankrupt Delta Air Lines is taking steps toward a possible strike, as the airline looks to end a pension plan and contract negotiations sour, a union official said on Thursday.

The union has asked its parent, Air Line Pilots Association, for a USD$10 million contingency fund and will hold a vote soon to authorize a strike, said Lee Moak, chairman of the Delta chapter of the union.

The pilots also opened a strike center in Atlanta on Thursday, which would act as the "hub for any self-defense operations."

Moak said the company had told the union that it believed it would have to terminate an already frozen pension plan for pilots and had asked the union not to oppose the move. But a Delta spokeswoman said the company had not yet made a decision on the pension plan.

"If management succeeds in rejecting our contract, we will strike, and we will strike at a time and place of our choosing," Moak said. "It's truly an act of self-defense."

Delta spokeswoman Chris Kelly said the airline had expected the pilots to take such steps and did not expect it to have any impact on the carrier's customers or operations.

"That does not in any way deter our intent or efforts to reach a consensual agreement," said spokeswoman Chris Kelly. "We are negotiating now, and we have a mutually agreed upon process to help facilitate reaching an agreement if we are unable to do so by the end of the month."

Atlanta-based Delta and its pilots reached an interim agreement in December and are scheduled to reach a final deal on a new contract by March 1, failing which a third-party neutral panel will facilitate negotiations and make a decision within about 45 days.

Moak said that raised the possibility of rejection of the existing pilots' contract with the airline.

Delta, which filed for Chapter 11 bankruptcy protection in September, has said it needs USD$3 billion in cost savings and revenue increases to survive, including about USD$325 million in givebacks from pilots.

"Delta pilots continue to negotiate," Moak said. "But the management team has still not moved from their USD$325 million figure other than cosmetically."

The latest moves by the union follow similar steps by the pilots at bankrupt Northwest Airlines, which is also negotiating a contract with its pilots to cut costs.

Delta's Moak said that the airline had asked the union to eliminate a furlough provision, which was similar to a severance package. About 500 pilots are already on furlough, he said.

The airline on Wednesday said it wanted to introduce a severance package for its senior managers to stem attrition rates.

Kelly said other employees had such plans in place and the airline had said earlier that it would examine the need for one for its senior managers.

But Moak said, "It really smacks with elitism... They are more concerned with retaining management than with pilots."