more reductions at DAL
 

Delta details planned capacity cuts

By HARRY R. WEBER
AP Airlines Writer
December 2, 2008 - 8:34 a.m. EST

ATLANTA — 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.

Isn't this still the earlier reductions announced? Most likely from the DCI side domestically? Old news I think.

No, this is new and it portends more cuts to come.Hopefully we can avoid reductions of crew.

Im assuming these cuts are for the new "combined" company? I know most of Delta's 2008 cuts were DCI, maybe there is still some fat on the NWA connection side of things.

I also can't recall what our "Delta" capacity cuts were for 2008, Im wanting to say 10% ?

Hopefully our connection carriers will absorb most the impact of this. Not wishing furloughs on anyone; however many Delta and NWA folks already have that patch.

I think the reduction also sheds some light on the just closed AE as well. To go one step further it's obviously a safe guess that the company will wait until after the SLI is out to announce the plans for 09 concerning where the equipment will end up. Take the equipment movement with the reductions and I think we're going to see some significant displacements. Sure hope Im wrong.

Which leads to our next AE in the first quarter of next year, assuming it doesn't get delayed like the August.....I mean November AE. The future heavies on the AE will continue to go very senior imo.

I would be very surprised to see hiring next year, I don't care what anyone says. It just doesn't make sense in the current economic environment. How much more can we cut mainline flying before we are overstaffed? No worries boys, we have a no furlough clause in our contract.http://usera.ImageCave.com/Dr5115/brickwall.gif

I think Delta will definitely be shedding more regional excess. They could probably get rid of Comair completely and achieve the numbers they are looking for in one punch. On the regional side anyway.

I believe a large part of this will be the reduction of CVG. It was posted a few weeks ago that we are down to something like 40 mainline flights there from 300 a few years ago. The reduction in mainline flying will most likely cause a corresponding reduction for the regional feed as you are no longer "feeding" much of anything. Whether it will be Comair remains to be seen. They would be easiest as DAL owns them and there is no contract to go to court over. It will most likely be determined by what carriers have the lowest performance. Either way I suspect the bulk of this will be RJ driven.

I served furlough from '01-06 and don't wish it on anyone but I don't want or expect to go through that again.

Another Bastian quote from the press. Funny how the investor conference and "details" will happen the day after SLI.

the 8th and 9th ought to be fun, huh? :D

Could anyone point me in the direction of the Compass flowdown language? Hoping not to need it, but just looking for a bit of light reading to accompany a six-pack of Bud heavy... :D

Yeah. Basically, it would take a year for someone near the bottom of the furlough that can hold Compass to get in because it's 20 a month and they can't train much more than that.

If they were to furlough 500, and every one of them wanted Compass, the bottom 170 would still hit the street. Then half of the remaining pilots would be at $35 an hour in one of the Compass bases under a concessionary contract. The ones that could hold captain would be at about $65 an hour, still under the concessionary contract, perhaps on reserve in MEM with 11 days off a month.

:(