World Airways, which transports U.S. troops and cargo and runs chartered passenger flights, said it had reached a tentative agreement with its 430 pilots, ending a weeklong strike.
The pilots are returning to work immediately and are expected to ratify the contract within 30 days, the unit of Peachtree City, Ga.-based World Air Holdings Inc. said Sunday in a statement. The pilots are represented by the International Brotherhood of Teamsters.
Last week, the union sued the airline in a federal court in California, saying the company took retaliatory measures against pilots, including abandoning crews overseas and suspending pay and benefits, since talks broke down Jan. 30. The pilots went on strike after the union's negotiating committee rejected the company's offer of a three-year contract.
The offer included the option of a 10% signing bonus followed by a pay increase of 3% the first year and 4% annually for two years, or a 7% signing bonus with a 5% raise the first year and a 3% raise each of the next two years, the airline said.
After-hours calls to spokesmen for World Airways and the union weren't immediately returned.