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Delta to warn pilots about possible furloughs, offers early retirement

Stock Markets Jun 27, 2020 01:10PM ET
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© Reuters. FILE PHOTO: Delta Air Lines passenger planes parked in Birmingham
 
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By Maria Ponnezhath

(Reuters) - Delta Air Lines (N:DAL) said late on Friday it will soon send warning notices to about 2,500 pilots regarding possible furloughs at the airline, as the industry takes a huge blow after the coronavirus pandemic slashed air travel demand.

"In an effort to best prepare our pilots should furloughs be needed, Delta will send required notices to approximately 2,500 pilots," a Delta spokesperson said in a statement, adding that the so-called 'WARN' notices will be sent next week.

Delta also reached a tentative agreement with the Air Line Pilots Association (ALPA) labor union on a pilot-specific voluntary early retirement option.

The early-out plan is a meaningful step as the carrier is working to manage the impact of the pandemic and align staffing with expected flying demand, the company said.

A spokesperson for ALPA said after reaching the tentative agreement, Delta sent a letter, detailing pilot furloughs and early retirement option, that has been 'received poorly' by the pilots.

"Early retirements alone likely won't be enough to avoid pilot furloughs altogether, Senior Vice President of Flight Operations at Delta, John Laughter, said in the internal memo on Friday, adding that the carrier hopes it will not have to reduce jobs involuntarily.

The airline will continue its discussions with the union on an all-inclusive agreement that would contain a no-furlough commitment for two years, Laughter said.

On Thursday, Delta Chief Executive Ed Bastian had informed employees that the company is planning to add about 1,000 flights in August but not many more for the remainder of 2020.

"While it's encouraging to see flights returning ... we likely remain at least two years away from a return to normal," Bastian said.

Delta to warn pilots about possible furloughs, offers early retirement
 

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Comments (4)
Pratt Man
Pratt Man Jun 27, 2020 5:27PM ET
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gosh..Warren was right again.
Alan Rice
Alan Rice Jun 27, 2020 2:24PM ET
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"...return to normal.." - ("the process of Destroying the Planet")
Vv Pp
Vv Pp Jun 27, 2020 3:36AM ET
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yeah sure, when airlines fail everyone should pay. When they make super profit, big shareholders take the profits and go to Bahamas.. capitalism at its best 👍
Me comment
Me comment Jun 27, 2020 3:36AM ET
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Thank you!
Tyler Hunt
Tyler Hunt Jun 27, 2020 3:36AM ET
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"When they make super profit..." ? When have they ever?
essam ragaban
essam ragaban Jun 27, 2020 2:52AM ET
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Early retirment with a guranreed recontract at return to normal is a good option for the pilots and Delta . pilots will be paid pension now and paid twice at return to normal ( pension + contracted salary) will make up the loses.
 
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