Dl To Close Dfw/7000 Layoffs

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Aug 20, 2002
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Delta cutting up to 7,000 jobs, shutting Dallas hub
Also warns of possible Chapter 11 filing by end of month

Staff report
Published on: 09/08/04


Delta Air Lines will cut up to 7,000 jobs over the next 18 months as part of a new effort to slash costs and regain financial altitude.

Delta CEO Gerald Grinstein also said a Chapter 11 filing could come as soon as the end of this month if the airline cannot stem a wave of early retirements among pilots. The airline says it also needs wage cuts from pilots and cost cut agreements with creditors. :(

"We're working hard and fast to avoid it," Grinstein said of a bankruptcy filing, "but if the pilot early retirement issue is not resolved before the end of the month, or if all the pieces don't come together in the near term, we will have to restructure through the courts."

A chief element of the restructuring plan Grinstein disclosed today is closure of Delta's hub at Dallas-Fort Worth International Airport.

The airline has about 4,000 workers and a maintenance base there.

Delta said details of the job cuts will be laid out in coming weeks. The airline said the job cuts will also be accompanied by cuts in pay and benefits.

Other moves unveiled today include:

— Additional planes for Song, Delta's low-cost unit.

— Growth in flights at Delta's hubs in Atlanta, Cincinnati and Salt Lake City.

— Changes in scheduling designed to use airplanes and flight crews more efficiently.

— Plans to revamp the SkyMiles frequent flier program and other service elements such as food and seating. Details of those changes are still being worked out, however.

Grinstein laid out the recovery moves at a management meeting in Atlanta this morning.

They come as the airline tries to stave off a possible bankruptcy filing after three years of net losses totaling $5.6 billion.

Delta's latest job cuts follow two previous waves of cuts in the past three years.

Delta said those moves trimmed about 16,000 jobs, although the company's total headcount has only fallen about 10,000 since mid-2001 because of hiring at subsidiary regional carriers.

Delta's hub in Dallas, where it is a distant second in market share to hometown giant American Airlines, has been shrinking for years.
 
Other press releases said at least four fleet types would be eliminated within 4 years although no details about which four; 733 and 732 seem certain since they have been mentioned by DL and are old, 762 and M90 seem next best guesses. Any other ideas?

Note that the press releases all talk about Delta growing. Eliminating four fleet types means DL will clearly need to acquire some aircraft since they don't have that many airplanes on order. I'll do some math but I don't think there are enough of anything on order to replace any 4 fleet types. New aircraft order anyone? E190 or Bombardier's new 100 seat class RJ?
 
WorldTraveler said:
Other press releases said at least four fleet types would be eliminated within 4 years although no details about which four; 733 and 732 seem certain since they have been mentioned by DL and are old, 762 and M90 seem next best guesses. Any other ideas?

[post="177134"][/post]​

The fleets to be iliminated will be the 737-200, 737-300, 737-G, and the 767-200.
Delta will most likely purchase some type of 100 seat a/c, but I would imagine right now we will hold off.
 
luv2fly said:
The fleets to be iliminated will be the 737-200, 737-300, 737-G, and the 767-200.
Delta will most likely purchase some type of 100 seat a/c, but I would imagine right now we will hold off.
[post="177157"][/post]​

I aaume that you meant 737-NG (NextGen)? If so, why would DL get rid of those when the MD-88's are getting pretty old, costly to maintain and, very fuel inefficient??
 
luv2fly said:
The fleets to be iliminated will be the 737-200, 737-300, 737-G, and the 767-200.
Delta will most likely purchase some type of 100 seat a/c, but I would imagine right now we will hold off.
[post="177157"][/post]​
It seems highly unlikely that they will eliminate the 738s which are almost new. Furthermore, they have firm orders for more of them and it would be costly to cancel.

My bet is they get rid of the 16 MD-90s.
 
luv2fly said:
The fleets to be iliminated will be the 737-200, 737-300, 737-G, and the 767-200.
[post="177157"][/post]​

You say that like it's a fact, luv2fly.... Can you confirm, or is that just your speculation?

Given the fleet commonality of the 767-200 fleet, I think it'll stay. My money is on the 732, 733, MD90, and the 777. Yes that's right, the 777. It's small fleet, smaller fleet than the MD11 was. Closer ties with NW, KE, and China Southern can give DL the increased Asian presence that they want without the financial exposure that worked so well in previous attempts to build up in Asia. The 762's have plenty of life left, they're not nearly as old as a NW DC9... :blink:
 
7.5victim said:
You say that like it's a fact, luv2fly.... Can you confirm, or is that just your speculation?

7.5 -- are you glad you departed when you did?

I remember when your monikor event happened, and how rattled my DL friends were.

If I recall correctly, you are doing well now, but I forgot your new industry.

Always interested in any of your posts. Thanks!
 
The press release said they were applying for China service. Through what gateway I have no idea, but they will need 777's for it. The MD-11 (scuds) are parked in GYR, and may already have been sold.
 
TechBoy said:
It seems highly unlikely that they will eliminate the 738s which are almost new. Furthermore, they have firm orders for more of them and it would be costly to cancel.

My bet is they get rid of the 16 MD-90s.
[post="177180"][/post]​

I agree with you about the existing 738s, but DL has already sold the 738s that are on order and to be delivered next year (and 2006, IIRC); they will be delivered to the buyer, not to DL. DL is on the hook for any shortfalls in lease rate or purchase price. The whole story is in this year's 10-K.
 
balloonguy said:
I aaume that you meant 737-NG (NextGen)? If so, why would DL get rid of those when the MD-88's are getting pretty old, costly to maintain and, very fuel inefficient??
[post="177173"][/post]​



No. At Delta we have 737-200s, 737-300s and 737-300s with a glass cockpit, which are called the 73G.
 
FWAAA said:
I agree with you about the existing 738s, but DL has already sold the 738s that are on order and to be delivered next year (and 2006, IIRC); they will be delivered to the buyer, not to DL. DL is on the hook for any shortfalls in lease rate or purchase price. The whole story is in this year's 10-K.
[post="177205"][/post]​
Yes, but that's only 11 of the firm orders. There are 50 additional firm orders.
 
whatkindoffreshhell said:
7.5 -- are you glad you departed when you did?

I remember when your monikor event happened, and how rattled my DL friends were.

If I recall correctly, you are doing well now, but I forgot your new industry.

Always interested in any of your posts. Thanks!
[post="177193"][/post]​


Fresh -

Thanks for remembering! 7.5 was a hard time, and it all but destroyed the old DL. By the time I left, it wasn't the same company I had gone to work for. I got out of the industry for a while, but I missed it. So I dusted off the resume and the old skills, and came back in. I'm with a regional now. I work harder than I ever did at DL, but I see the payoff daily now as well. And while I'm working harder, my paychecks reflect it too. I'm very happy here in DTW now!
 
7.5victim said:
Fresh -

Thanks for remembering! 7.5 was a hard time, and it all but destroyed the old DL. By the time I left, it wasn't the same company I had gone to work for. I got out of the industry for a while, but I missed it. So I dusted off the resume and the old skills, and came back in. I'm with a regional now. I work harder than I ever did at DL, but I see the payoff daily now as well. And while I'm working harder, my paychecks reflect it too. I'm very happy here in DTW now!
[post="177243"][/post]​


7.5, I was part of that painful ordeal too. I took the golden handshake and never looked back. Joined a regional eight years later before it went bankrupt. Hung up my tools for good. Everything you said about Delta before/ after was dead on.