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Delta to Expand Salt Lake Hub

Delta to Expand Salt Lake Hub

Posted - Sep. 8, 2004 at 12:14 p.m.



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Keith McCord reportingDelta Airlines making some major moves in an attempt to become profitable again.

The company announced a restructuring plan the airline's CEO calls "The biggest change in the company's history."

The good news, the Salt Lake hub survives. In fact, it'll actually grow!

Delta CEO Gerald Grinstein told employees in Atlanta this morning that the airline has to dramatically cut costs and soon.

In a nutshell, Grinstein says the pilots union needs to give up a billion dollars in wages and benefits. And if they don't agree by the end of the month, the bankruptcy proceeding would probably begin.

Delta announcement:

  1. Close Dallas hub
  2. Cut 6,000 to 7,000 positions
  3. Reduce wages
  4. Higher insurance premiums The airline also says it will close its hub at Dallas, and those flights and employees will be redeployed to Atlanta, Cincinnati and Salt Lake. Between 6,000 and 7,000 jobs will have to be cut from management positions on down. Those cuts will take place in the next 18 months. Wages will be cut and employees will have to pay higher insurance premiums. As far as Salt Lake is concerned, the airport will see a gain of about 58 flights from both Delta and Skywest. Salt Lake Airport Director Tim Campbell says he's pleased with what the company has decided. Tim Campbell, Airport Director: “We were very pleased of course, 58 additional flights, 13 new markets, additional service to existing markets, very positive news for Salt Lake City and Utah. We are very excited.” The specifics on how many jobs will be affected and how deep the wage cuts will be is still to be announced. The company said it would probably have additional news about that by the end of the month. Delta will also add a number of flights systemwide and fly most consistently throughout the day to eliminate the peak and non-peak periods. The airline will also reduce by four the types of planes that it flies, which will reduce training costs for pilots and crews. Delta currently flies 12 different types of planes.

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