Skip to main content
CNN.com /transcript

CNN TV

EDITIONS
SERVICES
CNN TV
EDITIONS

CNN LIVE EVENT/SPECIAL

America's New War: Delta Layoffs

Aired September 27, 2001 - 05:04   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL LIN, CNN ANCHOR: Just a few months ago, Delta pilots celebrated a new contract that made them the highest paid in the industry. Well, now pilots and other Delta employees and, in fact, the airline itself, they're all fighting to stay in business.

CNN's Kitty Pilgrim has more.

(BEGIN VIDEOTAPE)

KITTY PILGRIM, CNN CORRESPONDENT (voice-over): The No. 3 U.S. carrier joined the ranks of others and announced it was cutting 13,000 jobs by the end of December.

LEO MULLIN, DELTA AIR LINES: We had a four-day shutdown in which no revenue was obtained, followed by low traffic and revenue. The revenue passenger miles are running at only 60 percent of expectations.

PILGRIM: Even though U.S. airlines have received a $15 billion bailout from the government, not enough people are flying to justify keeping so many planes in the air.

Atlanta-based Delta is cutting its flight schedule by 15 percent and trimming its work force by 16 percent, bringing industry layoffs to more than 100,000, a number that seemed farfetched just a week ago.

Delta CEO Leo Mullin promised to make as many of the cuts by early retirement and voluntary layoffs with options for employees to return if business picks up. Mullin is also giving up his own salary for the rest of the year, predicting revenue declines well into next year.

RAYMOND NEIDL, AIRLINE ANALYST: Well, it's too early to tell how soon passengers will return. The best guess is we won't get anything close to normal into the second half of next year, and I certainly don't expect to see any profitability to at the very earliest the second half of next year.

PILGRIM (on camera): Southwest is the only major airline not to announce job cuts, but it said it's not buying any new planes and deferred 11 orders to Boeing, a company that itself is cutting 20,000 to 30,000 jobs. It's impossible to find any company not touched by this tragedy.

Kitty Pilgrim, CNN Financial News, New York.

(END VIDEOTAPE)

LIN: And the slowdown is across the tourism industry. The cruise line industry is anchored with heavy losses. For example, Renaissance Cruises can't stay afloat, so it's ordering all ships back into port. And the Associated Press reports two other cruise lines are changing their travel routes.

As for rental cars, just after the September 11th attacks, stranded fliers rented cars en masse, but now business has plunged 40 to 60 percent, and with more cars on the lot, Hertz is planning to lay off staff.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com.

 Search   


Back to the top