Delta Airlines is making plans to send 1941 pilots on leave of absence in October as the airline industry struggles to rebound from COVID-19-related outcome. Senior vice president of flight operations, John Laughter in an international memo to employees said that they previously said that early retirements alone would not solve the pilot over-staffing situation. CNN Business take the memo from Delta.
Delta Air Lines said Monday it plans to furlough 1,941 of its pilots in October amid a steep decline in travel due to the coronavirus pandemic.
That is fewer than the more than 2,500… https://t.co/FGvdN0K9Qt
— Atlanta News (@AtlNewsNow) August 25, 2020
Laughter stated that the carrier may be able to avoid or reduce the furloughs of pilots if cost-reducing contracts might able to done with their union, and if the CARES Act may extend. Further he adds that it may possible that its is far from sure and they must continue to take the essential steps to manage the airline business. It is extremely important for the recovery of Delta that they reduce the airliner size seeing the continued and uncertain way ahead.
The CARES Act (the federal bailout) set to expire at the September end. The bailout banned the airline industry from workers dismissals, pay cuts or involuntary furloughs. According to an SEC filing, Delta Airlines received around $5.4 billion funds as a grant and unsecured loans from the CARES Act. At present, the airliner has about 11,200 pilots. Laughter forecasts the firm will need approximately 9,450 pilots from the 2021 summer schedule, which he says Delta expects to be the peak flying period for the upcoming year or so.
Potential employee cuts warning from Delta Airlines
In May 2020, the company warned its employees of possible employee cuts. The airliner urged its employees like other world airlines to take advantage of acquisition and voluntary exit programs. Among those, one includes a retirement package for workers who served at Delta for over twenty-five years. Instead team personnel choosing these programs, Laughter highlights that it was not sufficient to prevent furloughs.
Delta says only twenty-five percent of revenue recovered since the coronavirus pandemic hit the country. Though the company expect a multi-year recovery and they will work assiduously to bring back staff to Delta as soon as they can, if demand recovers better than their expectations.