ATLANTA (AP) -- The chief executive officer of Delta Air
Lines Inc. gave a bleak assessment Thursday of demand for air
travel amid the enormous financial strain that many Americans
have been under in recent months.
In a recorded message to employees, CEO Richard Anderson did
not specifically say the world's biggest carrier plans to cut
more jobs or capacity than previously announced, though he did
suggest the erosion in demand that the airline has seen has been
very difficult.
"Passengers, our customers, are not buying tickets at rates
they were buying tickets a year ago," Anderson said. "Obviously,
we wish we didn't have to decrease our capacity, but we cannot
fly our airplanes around at low load factors."
Atlanta-based Delta has previously said it expected about
2,000 employees to accept the company's latest round of
severance offers that were made due to its plans to reduce
systemwide capacity in 2009 by 6 percent to 8 percent. The
window for employees to accept the severance offers closed at
midnight Wednesday.
Anderson did not say in his message late Thursday how many
employees accepted the offers or how many jobs the company would
ultimately cut.
He did say that Delta would work through the numbers and look
at who has chosen to take the packages and align that with the
airline's needs.
Anderson said Delta needs to right-size the airline based on
customer demand.
"The economy is very difficult," Anderson said. "It seems
every day we read about companies announcing layoffs by the
thousands."
He said customers are tightening their belts, not spending as
much on vacations. As a result, Anderson said Delta will need to
react quickly.
"A strong, durable airline is truly the only job security for
all of us," Anderson said.
The voluntary severance payout offers were made to a majority
of the 75,000 employees at Delta and Northwest's mainline
operations.
The program is similar to one earlier in 2008 that Delta used
to trim about 4,000 jobs. Northwest Airlines previously trimmed
jobs of its own before being acquired by Delta on Oct. 29.
Delta and Northwest's mainline operations include 75,000
employees. The entire company, including regional subsidiaries
Comair, Mesaba and Compass, has about 85,000 employees. The
12,000 pilots of Delta and Northwest, as well as certain
management and administrative employees, are not eligible for
the voluntary severance programs.