Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

Delta, union working to avoid furloughs of 2,300 pilots

Published 05/31/2020, 08:53 PM
Updated 05/31/2020, 08:55 PM
© Reuters. FILE PHOTO: A Delta Airlines plane is parked at a gate as the novel coronavirus outbreak continues, in Atlanta, Georgia
DAL
-

By Tracy Rucinski

(Reuters) - Delta Air Lines Inc (N:DAL) and its pilots union said on Sunday they are working to avoid furloughs of roughly 2,300 pilots following a reshuffling process meant to match staffing to summer 2021 flying.

Delta said this month that it would have more pilots than needed as it reduces its network and fleet due to a drop in demand from the COVID-19 pandemic, but is working to avoid involuntary furloughs.

Following the results on Sunday of a so-called "surplus" bid in which employees were asked to petition available positions at one of Delta's seven U.S. pilot bases, the airline will be shifting around 7,000 pilots to different locations or aircraft types, while 2,327 have not been assigned to any category, Delta's Master Executive Council (MEC) of the Air Line Pilots Association (ALPA) said in a statement.

Delta confirmed the release of the results of the bid "to better align our staffing with our future flying demand" and said it is "looking at all options to mitigate or minimize furloughs and will continue working with ALPA in the coming weeks to explore those options."

Atlanta-based Delta, with around 91,000 employees, announced on Thursday details of early out options for non-union employees that include cash severance, full healthcare coverage and travel benefits.

Major U.S. airlines, which have received billions of dollars in taxpayer aid for payroll, have all warned that they will need to reduce their workforce once a government-imposed ban on job cuts expires on Sept. 30.

After air travel demand virtually disappeared in April, U.S. airline executives have pointed to some green shoots, but the industry is not expected to return to pre-pandemic passenger traffic for at least three years.

© Reuters. FILE PHOTO: A Delta Airlines plane is parked at a gate as the novel coronavirus outbreak continues, in Atlanta, Georgia

ALPA said it was continuing to meet with Delta on potential early-out or voluntary leave programs, saying it is "optimistic that management will continue to engage with ALPA to protect pilot jobs."

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.