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.
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.