Voice Of Reason
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- Joined
- Sep 21, 2004
- Posts
- 1,369
Sounds like great news if your pilots are defined as "frontline employees"!
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"Friday, May 22, 2009
Delta CEO hails new pact, restates goal of zero layoffs
The Business Journal of Milwaukee - by J. Scott Trubey Atlanta Business Chronicle
http://assets.bizjournals.com/story_image/243529-600-0-1.jpg The top executive at Delta Air Lines Inc. hailed the carrier’s new trans-Atlantic pact with Air France KLM Group, and reasserted to employees Friday the carrier’s goal to avoid frontline layoffs.
In a recorded message to employees, Delta CEO Richard Anderson said the new alliance with Air France and KLM will be a win for employees, investors and passengers alike.
“It makes us stronger competitively, which will add to the bottom line when it’s all said and done,” Anderson said.
The new deal, which the Anderson said would amount to $12 billion in annual revenues, helps insure job security for employees, could contribute $200 million in annual profits for investors and passengers will get enhanced service and convenience.
The trans-Atlantic alliance between the world’s largest carrier and Europe’s largest airline group will offer more flight frequencies, better scheduling and more competitive fares, the carriers said in a joint announcement May 20 from Paris. The $12 billion revenue figure is based on flights operated by Delta, KLM and Air France to respective hubs, plus connecting service.
The deal bolsters the strength of the SkyTeam alliance against competing joint ventures Oneworld and StarAlliance. Delta signed a joint venture deal with Air France in 2007. Northwest Airlines, which Delta acquired last October, has been a partner with KLM since 1997.
Anderson said Friday Atlanta-based Delta (NYSE: DAL) and its Northwest subsidiary will handle one half of the flying under the joint venture. Delta, with Northwest, is one of the three largest carriers at Milwaukee's General Mitchell International Airport.
The new joint venture and Delta’s acquisition of Northwest will help the combined airline move forward despite strong economic headwinds, Anderson said.
Citing recent reports by the Air Transport Association of America, an industry trade group, Anderson said passenger revenues dropped 18 percent in April compared to April 2008. Overall traffic industry wide dropped 6.3 percent in April and the average price to fly one mile fell by 12.6 percent.
Cargo volume in March, the latest data available, plummeted 21 percent.
“It just shows how broadly the recession is affecting the industry,” Anderson said. “We’re seeing less demand in the cabin and cargo hold.”
Anderson credited employee for hard work despite an adverse economy, and said the carrier retains the goal of having no frontline layoffs. Delta and Northwest have offered buyout and early retirement packages to thousands over the past year, and officials have said 2,500 employees will leave the combined carrier after the busy summer travel season.
“We just have to do our very best and work very hard,” Anderson said.
The Atlanta Business Chronicle is a sister publication of The Business Journal Serving Greater Milwaukee.
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"Friday, May 22, 2009
Delta CEO hails new pact, restates goal of zero layoffs
The Business Journal of Milwaukee - by J. Scott Trubey Atlanta Business Chronicle
http://assets.bizjournals.com/story_image/243529-600-0-1.jpg The top executive at Delta Air Lines Inc. hailed the carrier’s new trans-Atlantic pact with Air France KLM Group, and reasserted to employees Friday the carrier’s goal to avoid frontline layoffs.
In a recorded message to employees, Delta CEO Richard Anderson said the new alliance with Air France and KLM will be a win for employees, investors and passengers alike.
“It makes us stronger competitively, which will add to the bottom line when it’s all said and done,” Anderson said.
The new deal, which the Anderson said would amount to $12 billion in annual revenues, helps insure job security for employees, could contribute $200 million in annual profits for investors and passengers will get enhanced service and convenience.
The trans-Atlantic alliance between the world’s largest carrier and Europe’s largest airline group will offer more flight frequencies, better scheduling and more competitive fares, the carriers said in a joint announcement May 20 from Paris. The $12 billion revenue figure is based on flights operated by Delta, KLM and Air France to respective hubs, plus connecting service.
The deal bolsters the strength of the SkyTeam alliance against competing joint ventures Oneworld and StarAlliance. Delta signed a joint venture deal with Air France in 2007. Northwest Airlines, which Delta acquired last October, has been a partner with KLM since 1997.
Anderson said Friday Atlanta-based Delta (NYSE: DAL) and its Northwest subsidiary will handle one half of the flying under the joint venture. Delta, with Northwest, is one of the three largest carriers at Milwaukee's General Mitchell International Airport.
The new joint venture and Delta’s acquisition of Northwest will help the combined airline move forward despite strong economic headwinds, Anderson said.
Citing recent reports by the Air Transport Association of America, an industry trade group, Anderson said passenger revenues dropped 18 percent in April compared to April 2008. Overall traffic industry wide dropped 6.3 percent in April and the average price to fly one mile fell by 12.6 percent.
Cargo volume in March, the latest data available, plummeted 21 percent.
“It just shows how broadly the recession is affecting the industry,” Anderson said. “We’re seeing less demand in the cabin and cargo hold.”
Anderson credited employee for hard work despite an adverse economy, and said the carrier retains the goal of having no frontline layoffs. Delta and Northwest have offered buyout and early retirement packages to thousands over the past year, and officials have said 2,500 employees will leave the combined carrier after the busy summer travel season.
“We just have to do our very best and work very hard,” Anderson said.
The Atlanta Business Chronicle is a sister publication of The Business Journal Serving Greater Milwaukee.
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