Delta Unveils Its Turnaround Plan -- Strategy Includes Cutting 7,000 Jobs, Abandoning Its Dallas-Fort Worth Hub

The Wall Street Journal 09/09/04
author: Evan Perez
(Copyright (c) 2004, Dow Jones & Company, Inc.)

Delta Air Lines launched its long-awaited campaign to persuade employees, creditors and investors that the struggling company has a strategy viable enough to justify billions of dollars of concessions the company is seeking from key constituencies.

Eight months into his tenure as Delta's chief executive, Gerald Grinstein, unveiled what the airline termed a "big bang" realignment of its routes, new customer-service amenities and restructured operations aimed at cutting annual costs by $5 billion by 2006. As expected, the strategy includes increasing its long-haul and international flying, abandoning the carrier's money-losing hub at Dallas-Fort Worth International Airport, slashing 7,000 jobs, and expanding flights at hubs in Atlanta, Cincinnati and Salt Lake City. Beset by bone-crunching competition from discount carriers, Delta has posted losses of more than $5.6 billion since the start of 2001. The job cuts represent about 10% of the airline's current work force.