Delta Air Lines to cut up to 9,000 jobs

Saturday, September 24, 2005

Atlanta-based Delta Air Lines announced plans to cut 7,000 to 9,000 jobs by the end of 2007, approximately 17% of its employees.

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.

Sources

"Delta to shed up to 9,000 workers" — BBC News, September 22, 2005

Kyle Peterson and Reuters. "Delta to cut up to 9,000 jobs" — boston.com, September 22, 2005

Lynne Marek. "Delta Air to Cut as Many as 9,000 Jobs in Bankruptcy" — Bloomberg, September 22, 2005

Share this:

The text of this article has been released into the public domain. In the event that this is not legally possible, this article may be used for any purpose, without any condition, unless such conditions are required by law. This applies worldwide. Copyright terms on images, however, may vary, so please check individual image pages prior to duplication.
Please note that this only applies to Wikinews content created prior to September 25, 2005. All content created after that date is released under a Creative Commons license which is mentioned at the bottom of each article. This is currently the Creative Commons Attribution 2.5 License.

This page is archived, and is no longer publicly editable.

Articles presented on Wikinews reflect the specific time at which they were written and published, and do not attempt to encompass events or knowledge which occur or become known after their publication.

Got a correction? Add the template {{editprotected}} to the talk page along with your corrections, and it will be brought to the attention of the administrators.

Please note that due to our archival policy, we will not alter or update the content of articles that are archived, but will only accept requests to make grammatical and formatting corrections.

Note that some listed sources or external links may no longer be available online due to age.

This page is archived, and is no longer publicly editable.

Articles presented on Wikinews reflect the specific time at which they were written and published, and do not attempt to encompass events or knowledge which occur or become known after their publication.

Got a correction? Add the template {{editprotected}} to the talk page along with your corrections, and it will be brought to the attention of the administrators.

Please note that due to our archival policy, we will not alter or update the content of articles that are archived, but will only accept requests to make grammatical and formatting corrections.

Note that some listed sources or external links may no longer be available online due to age.