This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Delta Makes Two Survival Moves

Gerald Grinstein, Delta Air Lines' (DAL - Get Report) CEO, won't be taking home a paycheck for the rest of the year.

The struggling airline's boss told employees Tuesday that he would not be taking his salary for the rest of the year, as part of an announcement outlining management's contribution to Delta's plan to cut labor costs. As of Jan. 1, 2005, all executives, supervisory, administrative and front-line employees will take an across-the-board pay cut of 10% and be forced to pay more for health care.

"In distressed times like these, when everyone must sacrifice, it is especially important that leadership participates, and they have," Grinstein said in a statement to employees. "It is also necessary for me to lead the way. I have declined my salary and will not be paid for the rest of the year."

Also, the company has started up an early retirement program for staffers, to cut back on involuntary layoffs. As part of the airline's restructuring plan, Delta Solution, the company said it will lay off as many as 7,000 employees, en route to cutting costs by $2.7 billion by 2006.

In another move, Delta dodged a bullet that could have sent the company into bankruptcy court this week.

On Tuesday, Delta's pilots officially ratified an agreement allowing the airline to employ newly retired pilots to keep operations running smoothly and prevent potential service disruptions that could have forced the carrier to file for Chapter 11 bankruptcy protection.

In exchange for letting the carrier recall retirees, the union has written assurance from management that it won't try to terminate the pilots' pension plan before Feb. 1, 2005. In an optimistic sign for future negotiations, 90% of Delta's pilots voted in favor of the agreement.

"The major goals of this agreement were to attain some protections for the Delta Pilots Retirement Plan and the operation of the airline," said John Malone, chairman of Delta's pilot union. "With the membership ratification process now complete, we can refocus our efforts on reaching an agreement as part of an overall restructuring of Delta."
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
DAL $41.67 -2.78%
AAPL $93.74 -1.15%
FB $117.58 0.73%
GOOG $693.01 0.29%
TSLA $240.76 -2.81%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs