Add to that 11,000 jobs at Air Canada; 2,500 jobs at Alitalia, and an expected 12,000 at Delta.
From ATW Online:
Alitalia to park 13 jets, aims to hold loss to $142 million
Dateline: Wednesday September 26, 2001
Responding to what it called "by far the worst crisis commercial airlines have faced since the end of the second World War," Alitalia's executive committee yesterday proposed a "contingency plan" calling for the grounding of six of the carrier's 89 MD-82s and four of its seven 747-200s from Nov. 1.
The remaining three 747 Classics would be retired during the first half of 2002 under the proposal that will be presented to the board Friday for approval. The fleet reductions will result in 900 redundancies among flight crew and 1,600 among ground staff.
Assuming the board approves the actions, losses for the half-year to March 31 are expected to be in the range of 300 billion lire ($142 million), versus 700 billion lire absent the measures.
Alitalia also said it has frozen "every call option" it holds with regard to future aircraft deliveries and intends to renegotiate existing purchase contracts. At the end of 2000 its order book comprised 12 A319s, five A320s and six 777-200ERs, according to Air Transport World.
In line with the fleet cutbacks, Alitalia is suspending some European regional service at Milan Malpensa as well as long-haul services from Malpensa to Hong Kong, Beijing and San Francisco. It also is suspending direct service between Rome and Rio de Janeiro, cutting capacity on Rome-New York and Milan-New York routes and slicing one daily frequency to Tel Aviv and Cairo. Additionally, it will reduce its flying activity by "the equivalent" of two of its eight MD-11s and take over direct management of three 767s leased from Eurofly. Other cost-saving measures will be pursued "through the reduction of commercial costs and the renegotiation of existing contracts with primary suppliers."
and from CNN
NEW YORK (CNNfn) - Delta Air Lines, the nation's No. 3 airline and the only one of the nation's six largest carriers yet to cut its staff, is apparently poised to announce staff cuts and a reduction in its schedule.
Delta spokeswoman Cindi Kurczewski confirmed that a "long-term schedule and employee cost reduction" would be announced at a press conference set for Wednesday morning.
"We've not yet begun communicating with employees (about layoffs)," she said. "We will communicate with employees before we talk to the media." She refused to talk about the extent of any layoffs or staff cuts being considered.
Delta CEO Leo Mullin told a congressional hearing on a proposed airline bailout package that his and other airlines had no choice but to cut staff, even with the approval of $15 billion in assistance.
"We're very much interested in flying more," he said in testimony. "If demand isn't there, it won't make any sense to do that. And there will have to be proportionate change in the work force."
Delta (DAL: up $0.71 to $24.70, Research, Estimates) has about 82,000 employees worldwide. It has been operating about 20 percent of its normal schedule for a little more than the last week. If Delta were to reduce its work force by 15 percent, or about 12,000 employees, it would bring layoffs in the industry since the Sept. 11 terrorist attack to about 100,000.
[ 26 September 2001: Message edited by: The Guvnor ]