DELTA Struggling airline plans to cut more jobs
High fuel costs and cut-rate competitors caused the airline's $5 billion loss.
ATLANTA (AP) -- More job cuts are in store at Delta Air Lines as the struggling carrier tries to avoid bankruptcy court.
Chief executive Gerald Grinstein told employees about the personnel reduction in a memo Wednesday after a daylong meeting with Delta's board to unveil his recovery plan. He did not specify how many positions would be cut.
Atlanta-based Delta has already laid off more than 16,000 since the 2001 terror attacks. The nation's third-largest carrier has lost more than $5 billion amid high fuel costs and stiff competition from low-fare airlines.
As of June 30, the company and subsidiaries employed 70,300, including 7,500 Delta pilots who have been asked for $1 billion in contract concessions.
Delta officials were to meet today with the pilots union, which has offered up to $705 million in cuts. In exchange for considering the company's concessions proposal, pilots want a stake in the airline -- and a voting seat on its board.
The union has asked that pilots get a stake in the company either through profit sharing or stock options, union spokeswoman Karen Miller said.
In his memo to employees Wednesday night, Grinstein said he presented to the board an employee reward plan that includes a combination of equity, profit-sharing and incentive payouts tied to performance and productivity. He did not offer details.