Delta announced10% paycuts for non-union staff yesterday in a bid to stave off bankruptcy (or in a bid to make themselves leaner after bankruptcy). CEO Gerald Grinstein added that he will not take a salary for the rest of the year, he’ll just be paid in Skymiles points. That last part isn’t true. Keep in mind that not only will Delta’s staff be facing a 10% pay decrease, they haven’t seen a raise since 2000. Unreal.
US Airways said that they can do twice as wellas Delta, and announced 20% paycuts for its long-suffering staff.
Oh, and in both cases, to add insult to injury, health benefits will become more costly.
The airlines tried begging passengers to purchase higher fare classes, then they tried bullying passengers into higher fare classes by denying frequent flyer benefits on cheaper tickets, then they tried fuel surcharges, now they’re cutting staff pay. There is literally nothing left to do for Delta and US Airways, and I believe we’ll see a Delta bankruptcy this year, and a US Airways liquidation early next year.