(Bloomberg) -- Delta Air Lines Inc. is negotiating with its pilots union to avoid potential layoffs after the carrier determined it would have 2,327 more aviators than necessary for its reduced schedule.
The Air Line Pilots Association is discussing ways with Delta to blunt any cuts by offering voluntary exit options, according to a union statement Monday. Another 7,000 pilots are already being displaced to other cities or aircraft types, or being lowered in rank, because of weak demand amid the coronavirus pandemic. Delta is also retiring its Boeing Co. MD-88 and MD-90 jets and about half its Boeing 717 planes.
The threat of significant layoffs is looming over U.S. carriers after September, when restrictions on mass job cuts expire under the terms of the U.S. government's aid for the airline industry. While demand for flights is inching up after collapsing in March and April, passenger counts remain about 88% below last year's level, according to the U.S. Transportation Security Administration.
ALPA leaders at Delta are in talks with the carrier over a compensation program for members who qualify for early retirement, as well as potential voluntary leave options, the union said. Pilots who hold a flying assignment starting Oct. 1 but elect to take an early retirement offer could open slots for some of the 2,327 unassigned employees.
The discussions were reported earlier by Reuters.
Delta is “looking at all options to mitigate or minimize furloughs,” the carrier said. Under airline labor contracts, workers who are furloughed retain the right to return to their jobs if conditions improve.
The Atlanta-based airline has said flying capacity this quarter will fall 85% from last year.
©2020 Bloomberg L.P.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
