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Jun 11, 2009 7:01 pm US/Central
Delta Announces Flight Cuts, MSP Spared
(WCCO)
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In last fall's merger with the Eagan-based Northwest, Delta promised the Metropolitan Airports Commission it would maintain 10,000 jobs in Minnesota and at least 400 daily flights.
CBS
Delta Airlines blames rising fuel costs and worries over the recent flu outbreak for the need to cut both flight capacity and jobs.
On Thursday, Delta CEO Richard Anderson said the Atlanta based carrier will trim system capacity by 10 percent this year. In addition Anderson expects Delta to reduce international capacity by 15 percent.
The reductions are the result of declining revenues, brought on by worries over the H1N1 flu outbreak which reduced travel to Mexico and the unrealized $6 billion in benefits from lower fuel costs and the merger with Northwest Airlines.
In last fall's merger with the Eagan-based Northwest, Delta promised the Metropolitan Airports Commission it would maintain 10,000 jobs in Minnesota and at least 400 daily flights. The pledge is tied to the $270 million in state bonds Minnesota issued to Northwest Airlines back in 1991 to help rescue it from economic collapse.
To make sure Delta is living up to the agreement, the state recently sent a letter asking for the most current staffing levels, but is still waiting a response.
The pledge to keep a required number of daily flights is important to air travelers like Eunice Beleford.
"It is a big concern. I may not be able to get the flight out when I want out," said Beleford.
Delta said not to worry. It's combined international, domestic and regional carriers currently average 650 flights out of MSP International each weekday.
"I don't think we'll lose service to any cities, but we may see a cutback in frequency," said air travel expert, Terry Trippler.
He says the Twin Cities is Delta's most profitable Northwest hub.
"Detroit is the largest, but MSP is the most profitable," added Trippler.
Delta's planned 10 percent reduction in flight capacity targets largely International flights. The greatest effects will be felt in Atlanta, Cincinnati and Detroit.
"The number will not impact the MAC agreement," said Delta spokesman, Anthony Black.
But holding up Delta's employment promise to MAC will be tougher. Already, hundreds of Northwest jobs have been vacated or transferred from Northwest's former Eagan headquarters to Delta's in Atlanta.
CEO Anderson said the company will have trimmed about 8,000 jobs from 2008 to the end of this year.
Many expect the Eagan headquarters building will be sold and the remaining jobs transferred to Delta's building "C" just south of the Humphrey terminal. That building, once home to the former Republic Airlines, is undergoing remodeling.
"In a way it's kinda like cleaning your closet. You got to get everything out and into the bedroom and make a big mess -- and then put everything back the way you want it. Right now we've got everything in the bedroom," said Trippler.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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