Delta Loses Money, Yet Progresses
Where else on Earth can you lose $88 million in one month, and state your “recovery is progressing”.
Delta Air Lines, operating under bankrupty protection, reports today that it narrowed its loss in October to 88 (m) million dollars.
The Atlanta-based carrier is the nation’s third largest. It says its loss in the 31-day period commpares to a loss of 301 (m) million dollars for the same month last year.
Excluding reorganization items, Delta says its loss in October was 64 (m) million dollars.
It’s good that they have $2.7 billion on cash on hand, because now they are calling some of their pilots back to work.
Delta Air Lines says it’s bringing back another wave of idled employees — this time 200 pilots — as its recovery plan proceeds despite a takeover attempt by US Airways.
Delta, which has also recently announced recalls of hundreds of flight attendants, mechanics and other employees in coming months, said Wednesday it plans to gradually call the pilots back to training classes starting in January.
This is all well and good, but if they keep losing $88 million per month, they only have 31 months left. They better start turning a profit, like quick.
38,000 Take Ford Buyout Offer
Almost half of Ford Motor Co.’s hourly production workers _ 38,000 so far this year _ have accepted buyouts or early retirement offers as the nation’s second biggest automaker shrinks in the face of multibillion-dollar losses and fierce competition from Asian carmakers.
The figure includes approximately 30,000 buyouts during the open signup period that concluded late Monday, plus about 8,000 who took deals offered at limited plants earlier this year.
Faced with lower demand for its products, Ford had hoped that 25,000 to 30,000 workers would sign up during the just-expired round of buyout offers so it could reduce manufacturing capacity to better match demand. The number who did was at the top end of that range.
The 38,000-worker reduction this year would amount to nearly 46 percent of the 83,000 unionized employees that Ford had at the start of the year.
Ford lost $7 billion in the first nine months of this year, and will spend (at a minimum) $1.33 billion on these buyouts.
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