…Employees (Pilots) Make Concessions

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Key Takeaways:

  • Northwest pilots recently agreed to a 15% pay cut and relaxed regional jet clauses, with Delta pilots voting on a similar package.
  • Delta Airlines is cutting up to 6,000 jobs across administrative, technical, and customer service departments.
  • These job losses at Delta are primarily due to the closure of its Dallas hub and significant reductions in Atlanta, with the airline seeking volunteers for severance before initiating furloughs.
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Of course, the majors didn’t get to be the majors without some things going for them and, although their employees can sometimes be their harshest critics, enlightened self-interest appears to be a factor in some recent concessions. Northwest pilots recently took a 15-percent pay cut for the next two years and relaxed clauses on adding regional jets. Delta pilots will finish voting on a similar package today but it won’t prevent more job losses, at least among other staff. In addition to seeking concessions, Delta is cutting up to 6,000 jobs, largely by closing its Dallas hub. There will also be significant job losses in Atlanta. Up to 1,800 administrative, 2,000 technical and 3,100 customer-service staff will be affected. The airline will look for volunteers to take a severance package and then it will start furloughing.

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