Pilots discuss after exiting a Delta Airlines flight on the Ronald Reagan National Airport on July 22, 2020 in Arlington, Virginia.
Michael A. McCoy | Getty Images
Delta Air Lines will furlough 1,941 of its pilots in October except it could possibly attain a cost-cutting settlement with the staff’ labor union, the airline mentioned Monday.
U.S. airways that accepted $25 billion in federal help are prohibited from chopping jobs by Sept. 30.
“We are six months into this pandemic and only 25% of our revenues have been recovered,” mentioned John Laughter, Delta’s senior vice chairman of flight operations in a memo to pilots, which was seen by CNBC. Laughter mentioned the airline does not count on a fast turnaround in demand.
This summer season, Delta warned 2,558 of its pilots about potential furloughs. The quantity was lowered by more than 1,800 pilots who took early retirement packages, however Laughter warned it’s not sufficient to keep away from the furloughs altogether.
“With approximately 11,200 active pilots still on the roster following the September 1 [voluntary early retirement] departures, we are simply overstaffed, and we are faced with an incredibly difficult decision,” he wrote. Laughter mentioned letters could be going out this week to pilots employed on or after July 17, 2017.
Delta final month mentioned remaining pilots may keep away from furloughs altogether with a 15% minimize to minimal pay.
The Air Line Pilots Association, which represents Delta’s pilots, urged the corporate to provide you with an answer. It beforehand proposed providing pilots voluntary day without work with partial pay, however Delta and the union have to this point failed to attain an settlement.
“While we should be talking about real solutions to save jobs, Delta’s most junior pilots are facing unnecessary career uncertainty when ALPA has offered countless voluntary options to management to prevent furloughs from occurring,” mentioned union spokesman and Delta first officer Chris Riggins, in a press release. “It’s not too late for management to complete discussions at the bargaining table and help mitigate the need to furlough.
Laughter said the company will need about 9,450 pilots for summer 2021, “which we count on would be the peak flying for the subsequent 12-18 months.”
Separately, Delta mentioned its COO Gil West plans to retire on the finish of September after 12 years on the Atlanta-based airline. West began shortly earlier than Delta’s 2008 merger with Northwest and was named Delta’s COO in 2014.
West additionally led a number of ancillary companies at Delta, together with its plane upkeep unit, which the airline has expanded in latest years, Delta mentioned in a information launch on Monday.