Delta to cut more jobs to prevent bankruptcy

Associated Press

ATLANTA — Struggling Delta Air Lines Inc. plans additional job cuts as part of its effort to avoid bankruptcy, chief executive Gerald Grinstein said yesterday in a memo to all employees.

"When our plan is successfully implemented, we will be the leaner, simplified, more productive airline we must be in order for us to survive and compete," Grinstein wrote. "Regrettably, one of the consequences will be fewer jobs and additional changes to pay and benefits for all of our employees as we make operational changes to achieve the necessary cost savings."

Grinstein sent the memo after concluding a daylong meeting with Delta's board to unveil his plan.

Atlanta-based Delta has already laid off more than 16,000 employees in the past three years as it lost more than $5 billion amid high fuel costs and stiff competition from low-fare carriers. The company and subsidiaries had 70,300 employees as of June 30.

The memo does not say how many more jobs will be cut, and a spokeswoman declined to comment.

Also yesterday, Delta said it was considering exchanging some debt, possibly for equity in the company, as part of its larger effort to avoid bankruptcy.

If it is successful, the nation's third-largest airline said, it will have more flexibility in restructuring its debt, and thus a greater likelihood of avoiding a Chapter 11 filing.