Delta Cuts

[Eagle757shark]

UPDATE 1-Delta looks to cut 2,000 jobs

Tue Mar 18, 2008 11:27am EDT
(Adds details, background)
NEW YORK, March 18 (Reuters) - Delta Air Lines Inc (DAL.N: Quote, Profile, Research) is looking to cut 2,000 jobs, or more than 3 percent of its work force, as the No. 3 U.S. airline struggles with high fuel costs.
Delta, which has been unable to seal a merger with rival Northwest Airlines Corp (NWA.N: Quote, Profile, Research), will offer voluntary retirement and buyout packages to 30,000 employees.
Delta is looking to cut 1,300 rank and file jobs and 700 administrative and management jobs.
In a regulatory filing on Tuesday, Delta also said it will cut flights in the United States, aiming to reduce 2008 domestic capacity by an additional 5 percent by August, resulting in a 10 percent year-over-year capacity reduction.
These reductions will be achieved partly by taking 15 to 20 mainline aircraft and 20 to 25 regional jets temporarily out of service. (Reporting by Mark McSherry; Editing by Brian Moss)

© Reuters 2007. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters and the Reuters sphere logo are registered trademarks and trademarks of the Reuters group of companies around the world.

 

[9rj9]

last resort

The continued dive to the bottom, cut 30,000 jobs and replace them with part time workers, no health insurance, no retirement. Sounds good if your management or a short term stock holder, if your a customer good luck finding your bag or anyone who actually gives a sheeit if your flight is cnx'ed.
What a business plan...friging clowns in Atlanta will run Delta into bankruptcy again.

 

[Superpilot92]

The continued dive to the bottom, cut 30,000 jobs and replace them with part time workers, no health insurance, no retirement. Sounds good if your management or a short term stock holder, if your a customer good luck finding your bag or anyone who actually gives a sheeit if your flight is cnx'ed.
What a business plan...friging clowns in Atlanta will run Delta into bankruptcy again.

Re-read the article, they are cutting 2000 jobs by offering the severance package to 30,000 employees in hopes that 2000 will take it. They arent cutting 30,000 jobs.

 

[9rj9]

more if needed

WASHINGTON, March 18 (Reuters) - Delta Air Lines (DAL.N: Quote, Profile, Research) said on Tuesday it would enact deeper cost cuts if a plan announced earlier in the day is not sufficient to counter sharply higher fuel prices.
"If we need to, we'll go deeper," Ed Bastian told analysts at the JP Morgan aviation conference.
Delta is looking to cut 1,300 rank-and-file jobs and 700 administrative and management posts through voluntary buyouts and attrition. It also aims to reduce capacity by an additional 5 percent by August.
We want to keep our stock holders happy, and cutting jobs is the best way to run a sheeity airline.

 

[Andy]

...with the LR's and 700's coming the rest of this year.

The new aircraft will be the next to go. Look for an order cancellation press release in the future.

Delta's management is being smart in making these cuts early. As demand falls (it is and will get worse), it's far better to not bleed a ton of cash while hoping that load factors increase.
There will likely be fare wars as passenger counts fall. Those flying aggressive schedules will bleed a lot more cash than those who have already reduced schedules.

The airline hiring music is about to grind to a halt, to be followed by furloughs.

 

[General Lee]

Slam on the General if you like, despite what you may think of his comments on FI...they are purely for entertainment value and should be taken with a grain of salt. He will be a Capt soon enough and pushing 200K a year, not too bad for someone who works 12 days a month, gets first class food and does NOT have to layover in LBB. Why would he take a buy out? Reading between the lines the buyout won't be offered to pilots anyway, they need ALL of us and more. IMHO this is a not to suttle way to get rid of the senior mama's and replace them with the recent new hires at 1/2 the salary and 1/2 the waistline and 1/2 the attitude: A winning situtation on ALL counts.

For the 700 admin folks, I HOPE that some very senior people who were kicking around the idea of retireing anyway in the next year will now get an added incentive to bow out and INCREASE thier pension along the way. It will be offered to 30,000 people, I would imagine they will find 700 to volunteer.

Thanks Andyd. No, I understand when people try to slam me, it comes with this board, and I enjoy the banter. As far as the Delta cuts, yeah, it seems we will cut some mainline planes. We are still getting new ones, which will offset furloughs, and our INTL growth will continue. Point to point routes that are not profitable will be gone, which is a good thing I guess. As far as my upgrade, depending on what plane I want, it could be there today. I am still enjoying the INTL flying now, but I will look it all over when my 9 month hold is over soon. No worries.

Bye Bye--General Lee

 

[regionalcap]

The new aircraft will be the next to go. Look for an order cancellation press release in the future.

Delta's management is being smart in making these cuts early. As demand falls (it is and will get worse), it's far better to not bleed a ton of cash while hoping that load factors increase.
There will likely be fare wars as passenger counts fall. Those flying aggressive schedules will bleed a lot more cash than those who have already reduced schedules.

The airline hiring music is about to grind to a halt, to be followed by furloughs.

I don't think they will cancel these orders. They expect international business to grow. They need these planes for the international routes.

 

[FLYLOW22]

What an awesome time to be a new hire at Delta.

Age 65, fleet shrinkage, no seniority. uke:

 

[General Lee]

The new aircraft will be the next to go. Look for an order cancellation press release in the future.

Delta's management is being smart in making these cuts early. As demand falls (it is and will get worse), it's far better to not bleed a ton of cash while hoping that load factors increase.
There will likely be fare wars as passenger counts fall. Those flying aggressive schedules will bleed a lot more cash than those who have already reduced schedules.

The airline hiring music is about to grind to a halt, to be followed by furloughs.

Wait, you're talking about new United airplanes, right? Oh wait, United has nothing on order, period. The new airplanes we have on order are thanks to our creditor Boeing, and I don't think they will be going away. And you say bleeding cash? Didn't Bastian say we may lose $100 million total this year in liquidity, and may even squeek out a small profit? I think he did. Again Andy, you are shooting from the hip with no ammo. You can make up stuff if you want, but reading it from a press release has a bit more credibility. Could he be wrong? Maybe, but he has the SEC watching him. Could you be wrong? Oh yes.


Bye Bye--General Lee

 

[General Lee]

What an awesome time to be a new hire at Delta.

Age 65, fleet shrinkage, no seniority. uke:

Age 65 is not affecting us yet thanks to all of the retirements. Newhires on the INTL 767 in JFK are getting lines within a couple months. (still have 11 new INTL destinations coming online in June). The planes that seem to be going are mainly domestic birds, and probably older ones. And, hiring is slowing supposedly, but continuing.

Bye Bye--General Lee