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December 2, 2008
Delta details planned capacity cuts
By HARRY R. WEBER AP Airlines Writer
Delta Air Lines Inc. hinted Tuesday that more job cuts could be on the way as it disclosed that it will reduce consolidated system capacity by 6 percent to 8 percent in 2009, compared to the current year.
The Atlanta-based carrier's president, Ed Bastian, spoke to investors during a conference in New York.
In a regulatory filing ahead of the speech, the world's biggest carrier said domestic capacity in 2009 will be reduced 8 percent to 10 percent compared to 2008, while international capacity will be reduced 3 percent to 5 percent next year compared to this year.
The news comes as a global financial crisis hits airlines hard by reducing demand for seats.
"Once again, Delta must take the necessary steps to adjust our business accordingly and make certain seat capacity meets customer demand," Bastian and Chief Executive Richard Anderson said in a memo to employees. "These economic hurdles are difficult, and we remain committed to building our company on a durable financial foundation with industry-leading liquidity. Remember that speed wins so we will be decisive and not delay."
The memo also said that Delta is analyzing the impact on staffing as it pertains to the planned further capacity reductions and "as in the past, we will offer voluntary programs to adjust staffing needs." The memo did not elaborate.
"We are taking these actions to secure your careers and return us to sustained profitability," the two executives said.
In connection with capacity reductions put in place earlier this year, Delta said it would cut roughly 4,000 jobs.
Delta acquired Northwest Airlines Corp. on Oct. 29. It is in the process of integrating the two carriers' operations.
December 2, 2008
Delta details planned capacity cuts
By HARRY R. WEBER AP Airlines Writer
Delta Air Lines Inc. hinted Tuesday that more job cuts could be on the way as it disclosed that it will reduce consolidated system capacity by 6 percent to 8 percent in 2009, compared to the current year.
The Atlanta-based carrier's president, Ed Bastian, spoke to investors during a conference in New York.
In a regulatory filing ahead of the speech, the world's biggest carrier said domestic capacity in 2009 will be reduced 8 percent to 10 percent compared to 2008, while international capacity will be reduced 3 percent to 5 percent next year compared to this year.
The news comes as a global financial crisis hits airlines hard by reducing demand for seats.
"Once again, Delta must take the necessary steps to adjust our business accordingly and make certain seat capacity meets customer demand," Bastian and Chief Executive Richard Anderson said in a memo to employees. "These economic hurdles are difficult, and we remain committed to building our company on a durable financial foundation with industry-leading liquidity. Remember that speed wins so we will be decisive and not delay."
The memo also said that Delta is analyzing the impact on staffing as it pertains to the planned further capacity reductions and "as in the past, we will offer voluntary programs to adjust staffing needs." The memo did not elaborate.
"We are taking these actions to secure your careers and return us to sustained profitability," the two executives said.
In connection with capacity reductions put in place earlier this year, Delta said it would cut roughly 4,000 jobs.
Delta acquired Northwest Airlines Corp. on Oct. 29. It is in the process of integrating the two carriers' operations.
never mind.
