Delta to cut capacity by 4% from Sep-2011, offers voluntary retirement
Delta Air Lines plans to cut capacity by at least 4% from Sep-2011 and has also offered voluntary early retirement and buyout plans to some staff, to cut costs (Bloomberg, 06-May-2011/Reuters, 07-May-2011). The majority of capacity cuts will be through an 8-10% reduction in capacity on trans-Atlantic services. Delta is offering voluntary retirement to staff whose age, combined with 10 or more years of service, is at least 55. Staff with at least five consecutive years of service at Delta who do not meet the retirement age qualify for the carrier’s buyout programme. CEO Richard Anderson attributed the cost cutting plans to rising fuel prices, adding that although fuel prices did decline last week, they did not reduce back “into the area that is normal”.
Delta Air Lines: “In order for our business to thrive we must think of the current high fuel prices as a permanent reality of our business. The associated costs of doing this flying must also be reduced,” Richard Anderson, CEO. Source: Bloomberg, 06-May-2011/Reuters, 07-May-2011.