Delta Swan song?
Struggling Delta Airlines may remake itself similar to its budget Song operation, speculates BusinessWeek Online.
“Top management at the third-largest airline is preparing a massive seats-to-skycaps overhaul,” said BusinessWeek.
The strategy could be to win deep wage cuts from the pilots and then add more features of low-cost carriers.
CEO Gerald Grinstin was due to present a plan of action to Delta’s employees and union representatives on 28 July, followed by board meetings.
Observers say only drastic changes can save the airline from Chapter 11. It lost $312 million in the second quarter.
Analysts say that to stay flying, Delta will have to improve efficiency and productivity.
Delta had the second highest costs in the industry last quarter, 10.32 cents per seat mile. But costs for Song are 20% less than Delta’s regular fleet.
Report by David Wilkening
David
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