Delta Air Lines to cut up to 9,000 jobs
Saturday, September 24, 2005
CEO Gerald Grinstein will take a 25% pay cut. Executives have their pay cut by 15%. Other employees will have their pay reduced by 7 to 10%. Employees that make less than $25,000 a year will not be affected by these pay cuts.
Delta has already cancelled leases on 40 aircraft and they plan to reduce its fleet by at least 80 more. They plan to reduce domestic capacity by 15 to 20 percent and increase international capacity by 25 percent.
Delta is the third-largest airline in the US. They have lost 10 billion dollars since 2001 and are 14 billion dollars in debt. Delta Air Lines and Northwest Airlines filed for Chapter 11 bankruptcy protection last Wednesday, joining United Airlines and US Airways. Four of the seven largest US carriers are operating under bankruptcy protection. Chapter 11 protection gives companies time to rearrange its finances while continuing to operate.
Delta CEO Gerald Grinstein said they intended "to move from being an unprofitable airline today to a profitable airline in just over two years". "This means we will become a smaller, more cost-efficient airline, with a strengthened network and a stronger balance sheet." These cuts should help save Delta up to $3 billion dollars.
- "Delta to shed up to 9,000 workers" — , September 22, 2005
- Kyle Peterson and Reuters. "Delta to cut up to 9,000 jobs" — , September 22, 2005
- Lynne Marek. "Delta Air to Cut as Many as 9,000 Jobs in Bankruptcy" — , September 22, 2005
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