Delta Air to Shrink Capacity 10%, Cut 2,000 Jobs, Bastian Says

[marmar]

from Bloomberg:


Delta Air to Shrink Capacity 10%, Cut 2,000 Jobs, Bastian Says

By Mary Jane Credeur

March 18 (Bloomberg) -- Delta Air Lines Inc., the third- largest U.S. carrier, will shrink its domestic passenger capacity by 10 percent and cut 2,000 jobs as record-high fuel costs wipe out profits, Chief Financial Officer Ed Bastian said.

Delta will park as many as 20 of its mainline aircraft and as many as 25 regional jets, Bastian said today in a memo to employees. That will reduce domestic capacity 10 percent by August, double the 5 percent reduction the Atlanta-based carrier previously targeted.


http://www.bloomberg.com/apps/news?pid=20601087&sid=aEJxnjvKVIR4&refer=home

[RB TexLa]

1. I thought it was 30,000. Oh but their pride won't let them be part of another airline.

[napi21]

4. Pride has nothing to do with it! My son wowrks for Delta. The

problem with the merger is working out something fair in keeping their jobs. Over the last several years, Delta has paid people to retire early to reduce personnel and haven't replaced them, so the majority of their employees have less than 15 years service time. Northwest didn't do that so THEY have many employees with 20+ years on the job. In ANY merger, you have duplicate jobs that aren't needed and jobs will be eliminated. Nobody can reach an agreement on what would be a fair way to do that. Even though Delta would be the dominant company in this deal, THEIR employees would be the loosers if they used seniority as a way to eliminate the duplicate jobs. You really can't blame those employees for refusing to go along with THAT! Plus other than the pilots, Delta doesn't have a union, and NW does. I think that makes for a meeting between a rock and a hard place! Neither will budge.

[RB TexLa]

5. dominant? Northwest wanted Delta to make them their regional discount east coast carrier

to compete with Airtran. That's where Delta's only real profit center and value as an acquisition is.

[marmar]

6. Good point. Northwest has those very valuable Asia routes.....

.... And complete dominance at its hubs.

[napi21]

8. The agreement stated the airline would be known as Delta AFTER

the merger and it's HQ would be in Atlanta. That sure sounds like Delta was the dominant one to me!

[spinbaby]

2. Great, fewer flights

It's getting to be more and more difficult to get from Pittsburgh to anything but a hub city.

[marmar]

3. Isn't Pittsburgh a USAirways hub?

n/t

[Sinistrous]

7. Not any more.

USAirways kicked Pgh in the nuts about two years ago.