Flight International online news 13:00 GMT: Delta Air Lines is expected to announce further cost-cutting plans worth up $400 million to stave off filing for Chapter 11 bankruptcy protection.
The cuts are in addition to a reorganisation programme, already agreed, that is intended to save the carrier $5 billion annually.
The airline has previously discussed the likelihood of a Chapter 11 filing, and privately, senior executives are discussing the implications of new stringent US bankruptcy laws due 18 October that could incentivise a bankruptcy filing.
According to the New York Times, $275 million of the cuts will come from the carrier’s pilots, a group that has already ratified a $1 billion annual concessions plan. The remaining $125 million will come from other, non-unionised staff.
The airline’s troubles have been amplified by the continued exodus of senior management, which continued yesterday with the unexpected resignation of vice president and treasurer Todd Helvie just a little over a year after his promotion to the role.
Source: Flight International
