Largest single-day transformation in Delta history
Delta Air Lines “transformation plan” that includes cutting 7000 jobs over the next 18 months and cost cuts of $2.7 billion by the end of 2006 may still not ward off bankruptcy, said the carrier’s CEO Gerald Grinstein.
“If the pilot early retirement issue is not resolved before the end of the month, or if all of the pieces don’t come together in the near term, we will have to restructure through the courts,” said Mr Grinstein.
The 7000 job cuts represent 10% of the airline’s employees.
The job losses were only part of a cost cutting plan that also includes axing Dallas-Fort Worth airport as one of the airline’s four hubs. Instead, Delta will expand its hubs in Cincinnati and Salt Lake City.
Mr Grinstein said there would be a 15% reduction in administrative and overhead costs, including management cuts.
Delta said the plan was part of a move to save more than $5 billion by 2006 and was on track to deliver nearly half of that total by the end of this year.
Delta is asking pilots to take a pay cut of at least $1 billion.
As part of what Mr Grinsten called “the largest single day transformation in Delta’s history,” the airline will redeploy its remaining hubs. Daily flights from Atlanta will go from 970 to 1,051; Cincinnati and Salt Lake City will also have increased flights. Delta will also add 31 non-stops.
Future growth will include Song, which will add a dozen aircraft to the present 36-plane fleet.
At Dallas-Fort Worth, American Airlines is adding to its schedule to make up for lost Delta flights.
Report by David Wilkening
David
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
Qatar Airways offers flexible payment options for European travellers
Airlines suspend Madagascar services following unrest and army revolt
Digital Travel Reporter of the Mirror totally seduced by HotelPlanner AI Travel Agent
Strike action set to cause travel chaos at Brussels airports
All eyes on Qatar as Qatar Airways leads a season of global events