Will they ever figure it out?????
Delta to eliminate up to 6,900 jobs
Carrier to make cuts over 18 months to avoid bankruptcy
[url="http://www.reuters.com/"]
[/url] Updated: 9:35 a.m. ET Nov. 10, 2004
CHICAGO - Delta Air Lines on Wednesday said it plans to cut between 6,000 and 6,900 jobs during the next 18 months, implement a 10 percent across-the-board pay reduction and reduce employee benefits in a bid to avoid bankruptcy.
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Released NOV 10, 2004Major Airlines$78-$98Roundtrip to Florida, 2-Day Sale from 15+ CitiesRiviera Hotel & Casino$35Las Vegas: Stay on the Strip in Nov/Dec1-800FlyEurope$179 & upEurope from Boston, RoundtripBusy Bee Travel$499Westin Cancun: 3 Nights & Air (over $300 OFF)Frontier Airlines$69-$109L.A./San Diego from 20+ Cities, 3-Day Sale[font=arial,helvetica,sans-serif]*Fares listed may not include all taxes, charges and government fees. More information. © 2004 Travelzoo Inc.[/font]Previously, the company said it needed to reduce staff by 7,000 in an effort to cut costs. Delta has more than 60,000 employees, according to its Web site.
Atlanta-based Delta also said it would issue as much as 75 million shares of common stock, mostly to pay employees as part of a new incentive program. The company said it will use an exception in the New York Stock Exchange's shareholder approval policy to issue the shares.
Delta said a committee of it's board of directors determined that any delay in gaining shareholder approval for the stock issue could "seriously jeopardize" its financial viability, Delta said. The No. 3 U.S. carrier will notify shareholders by mail of the plan without seeking their approval.
The airline added that it would implement new employee incentive programs as part of its restructuring.
Delta has been searching for ways to cut costs to restructure its business in a fight to avoid bankruptcy. Like other airlines, it has been plagued by high costs, weak revenue, skyrocketing fuel prices and stiff competition from discount carriers.
Copyright 2004 Reuters Limited. All rights reserved. Republication or redistribution of Reuters content is expressly prohibited without the prior written consent of Reuters.
Delta to eliminate up to 6,900 jobs
Carrier to make cuts over 18 months to avoid bankruptcy
[url="http://www.reuters.com/"]
[/url] Updated: 9:35 a.m. ET Nov. 10, 2004CHICAGO - Delta Air Lines on Wednesday said it plans to cut between 6,000 and 6,900 jobs during the next 18 months, implement a 10 percent across-the-board pay reduction and reduce employee benefits in a bid to avoid bankruptcy.
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Atlanta-based Delta also said it would issue as much as 75 million shares of common stock, mostly to pay employees as part of a new incentive program. The company said it will use an exception in the New York Stock Exchange's shareholder approval policy to issue the shares.
Delta said a committee of it's board of directors determined that any delay in gaining shareholder approval for the stock issue could "seriously jeopardize" its financial viability, Delta said. The No. 3 U.S. carrier will notify shareholders by mail of the plan without seeking their approval.
The airline added that it would implement new employee incentive programs as part of its restructuring.
Delta has been searching for ways to cut costs to restructure its business in a fight to avoid bankruptcy. Like other airlines, it has been plagued by high costs, weak revenue, skyrocketing fuel prices and stiff competition from discount carriers.
Copyright 2004 Reuters Limited. All rights reserved. Republication or redistribution of Reuters content is expressly prohibited without the prior written consent of Reuters.
