Delta will avoid pilot furloughs if they agree to reduced minimum pay: memo
[WASHINGTON] Delta Air Lines told pilots on Friday it would avoid furloughs if they agreed to reduced guaranteed minimum pay, according to a memo seen by Reuters.
Delta is still struggling due to a dramatic decline in travel demand caused by the coronavirus pandemic. This week it reported second quarter revenue fell 91 per cent and a US$3.9 billion adjusted pre-tax loss.
The airline is working to further cut costs and more than 17,000 employees are taking voluntary departure packages, including more than 1,700 of 7,900 pilot ahead of a Sunday deadline for pilots to accept voluntary packages.
Delta flight operations senior vice president John Laughter said in a memo the company is "committed to preventing involuntary furloughs for as many, if not all, Delta people."
Mr Laughter said the company proposed reducing guaranteed minimum pilot pay by 15 per cent for 12 months in exchange for a guarantee of no furloughs for one year.
"Our approach is to spread the work of a smaller airline among all our pilots to preserve all jobs - that would be unheard of in our history," Mr Laughter wrote.
GET BT IN YOUR INBOX DAILY
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Mr Laughter said Delta pilots are currently being paid for more hours than they are actually flying. In June pilots flew about 10 actual hours and it will be 15.5 in July.
A spokesman for the Air Line Pilots Association said the union met with Delta on Thursday and suggested the airline was choosing "to negotiate in public directly with our pilots," which it said that could impede the process.
Mr Laughter noted "forward bookings have stalled as infection rates in parts of the U.S. spike and anxiety over the virus rises. Demand is still down about 80 per cent, and we don't expect to see measurable improvement until the U.S. infection rates fall again."
The memo was reported earlier by CNBC.
REUTERS
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Transport & Logistics
FAA probes union claims Boeing retaliated against two engineers in 2022
Tesla profits tumble but shares rise on new vehicle plan
Tesla to cut more than 6,000 jobs across Texas, California
French air traffic controller strike threatens flight chaos
Tesla to accelerate launch of cheaper cars after sales miss
Heathrow faces further strike action in May from ground staff