Delta Air Lines Chief Executive Leo Mullin says the Atlanta-based company, which has already cut 16,000 jobs in two years, could eventually be forced to lay off more workers if management fails to get deep wage concessions from pilots.
In an interview with The Associated Press, Mullin stressed that the airline has no plans for more job cuts but added they may be inevitable if pilots refuse a cut in their pay. Mullin said the cuts are necessary to reduce costs and be in line with competitors' spending.
Delta's pilots -- among the highest paid in the industry -- have said they want a contract extension as part of any discussion of salary cuts.
"If we don't get this, we will be a hobbled organization in 2005 and 2006," Mullin said. "At the present time, I don't think we'll be a bankrupt organization. I think we would continue to contract."
Mullin said that contraction could include job cuts.
"I'm saying this because if you were to extend the point where it became your only alternative, then you'd do it," Mullin said. "But at this time, that's not what we're thinking about. We're thinking we're going to get some help from the pilots, and that we will somehow find our way through this in a way that does not involve that."
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http://www.ajc.com/business/content/business/delta/1103/05pilots.html
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