Delta will avoid pilot furloughs if they agree to
reduced minimum pay: memo
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[July 18, 2020] By
David Shepardson
WASHINGTON (Reuters) - Delta Air Lines told
pilots on Friday it would avoid furloughs if they agreed to reduced
guaranteed minimum pay, according to a memo seen by Reuters.
Delta is still struggling due to a dramatic decline in travel demand
caused by the coronavirus pandemic. This week it reported second quarter
revenue fell 91% and a $3.9 billion adjusted pre-tax loss.
The airline is working to further cut costs and more than 17,000
employees are taking voluntary departure packages, including more than
1,700 of 7,900 pilot ahead of a Sunday deadline for pilots to accept
voluntary packages.
Delta flight operations senior vice president John Laughter
said in a memo the company is "committed to preventing involuntary
furloughs for as many, if not all, Delta people."
Laughter said the company proposed reducing guaranteed minimum pilot pay
by 15% for 12 months in exchange for a guarantee of no furloughs for one
year.
"Our approach is to spread the work of a smaller airline among all our
pilots to preserve all jobs – that would be unheard of in our history,"
Laughter wrote.
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Delta Air Lines passenger planes are seen parked due to flight
reductions made to slow the spread of coronavirus disease
(COVID-19), at Birmingham-Shuttlesworth International Airport in
Birmingham, Alabama, U.S. March 25, 2020. REUTERS/Elijah Nouvelage
Laughter said Delta pilots are currently being paid for more hours than they are
actually flying. In June pilots flew about 10 actual hours and it will be 15.5
in July.
A spokesman for the Air Line Pilots Association said the union met with Delta on
Thursday and suggested the airline was choosing "to negotiate in public directly
with our pilots," which it said that could impede the process.
Laughter noted "forward bookings have stalled as infection rates in parts of the
U.S. spike and anxiety over the virus rises. Demand is still down about 80%, and
we don’t expect to see measurable improvement until the U.S. infection rates
fall again."
The memo was reported earlier by CNBC.
(Reporting by David Shepardson; Editing by Sonya Hepinstall)
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