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Delta Buyout Program A Hit, Extra 1,000 Jobs Go
Thomson Financial News
June 1, 2008
WASHINGTON - US carrier Delta Air Lines's cost-cutting voluntary departure program for employees has drawn so much demand that 1,000 additional jobs will be cut, a company official said.
Three-thousand employees volunteered for the buyout package, whereas the original offer was for 2,000 jobs, the official said on condition of anonymity.
He explained that the bigger-than-expected response to the offer would give the company more financial flexibility to face soaring jet fuel prices, confirming that each request for a buyout would be accepted.
He added that new employees would be hired if needed.
Delta, a partner of Air France-KLM in the SkyTeam alliance, employs about 55,000 people.
The airline industry is reeling under pressure from skyrocketing jet fuel prices as crude oil hovers around $130 a barrel in record territory.
The pressure is acute in the United States, where a number of airlines have aging, fuel-guzzling fleets.
By contrast, European airlines have the foreign-exchange advantage of a stronger euro to buy dollar-denominated jet fuel.
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