GogglesPisano
Pawn, in game of life
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Delta CEO: 'Comprehensive' Changes Ahead
Friday March 14, 4:06 pm ET
By Harry R. Weber, AP Business Writer
Delta Will Revise Business Plan to Deal With Higher Fuel
ATLANTA (AP) -- Delta Air Lines Inc. will be overhauling its business plan to deal with soaring fuel prices, the chief executive of the nation's third-largest carrier said Friday.
CEO Richard Anderson did not provide any details in a recorded message to employees, including whether the "comprehensive" plan to be announced next week will include job cuts.
Atlanta-based Delta has already cut domestic flights, eliminated some routes and tried to conserve fuel as the price of a barrel of oil has soared over the last year from $60 to $111 this week, Anderson said.
Spokeswoman Chris Kelly declined to comment beyond Anderson's message to employees.
Delta president Ed Bastian is expected to speak at an investor conference Tuesday.
In the recording, Anderson did not mention consolidation talks between Delta and Eagan, Minn.-based Northwest Airlines Corp.
A deal to combine the two carriers, which at one time had been projected to be worth $20 billion, has been held up by an inability of the two airlines' pilots unions to reach a deal on integrating their seniority lists.
Leaders of the two unions aren't currently meeting, but remain in communication. It's not clear when they will meet again.
Anderson said Delta has to operate cautiously during uncertain financial times that have seen fuel prices increase dramatically.
He said Delta already has trimmed some selected domestic routes at off-peak times, while growing international capacity.
Anderson said the company will make other reductions when necessary.
He said the company will role out a more comprehensive plan "in reaction to changes in the marketplace."
"Stay tuned," Anderson told employees. "We're going to have a lot more information out next week about our business plan in light of the fuel prices we're facing."
Friday March 14, 4:06 pm ET
By Harry R. Weber, AP Business Writer
Delta Will Revise Business Plan to Deal With Higher Fuel
ATLANTA (AP) -- Delta Air Lines Inc. will be overhauling its business plan to deal with soaring fuel prices, the chief executive of the nation's third-largest carrier said Friday.
CEO Richard Anderson did not provide any details in a recorded message to employees, including whether the "comprehensive" plan to be announced next week will include job cuts.
Atlanta-based Delta has already cut domestic flights, eliminated some routes and tried to conserve fuel as the price of a barrel of oil has soared over the last year from $60 to $111 this week, Anderson said.
Spokeswoman Chris Kelly declined to comment beyond Anderson's message to employees.
Delta president Ed Bastian is expected to speak at an investor conference Tuesday.
In the recording, Anderson did not mention consolidation talks between Delta and Eagan, Minn.-based Northwest Airlines Corp.
A deal to combine the two carriers, which at one time had been projected to be worth $20 billion, has been held up by an inability of the two airlines' pilots unions to reach a deal on integrating their seniority lists.
Leaders of the two unions aren't currently meeting, but remain in communication. It's not clear when they will meet again.
Anderson said Delta has to operate cautiously during uncertain financial times that have seen fuel prices increase dramatically.
He said Delta already has trimmed some selected domestic routes at off-peak times, while growing international capacity.
Anderson said the company will make other reductions when necessary.
He said the company will role out a more comprehensive plan "in reaction to changes in the marketplace."
"Stay tuned," Anderson told employees. "We're going to have a lot more information out next week about our business plan in light of the fuel prices we're facing."
