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Yet More Job Cuts, Pay Cuts at Delta & Northwest

I can’t even keep track anymore of which airlines have asked for which givebacks and which airlines are laying off their staff, but I do know that Delta and Northwest both had bad news for its employees yesterday.

Delta said that as part of its bid to reduce its costs by $240 million it will lay off between 1600 and 2000 of its technical operations staff.  The reductions are possible because of a new maintenance outsourcing agreement.

Meanwhile, Northwest added that it actually needs to save $1.1 billion in labor costs (not the previously announced $950 million) to keep the airline out of bankruptcy.  The pilots union said they won’t agree to cuts until other employee groups agree.  Northwest’s unions have already given one round of givebacks and don’t seem particularly eager (shocker) to give another.  Northwest actually has a pretty strong cash position, so a bankruptcy filing is not expected any time soon.

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  1. new maintenance outsourcing …….does that mean flying the delta airplane into “someones back yard garage” to change the oil and fix the hydrolics?????

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