Delta Air in Cost-Cutting Move

The carrier will outsource maintenance on some planes.
By Ross Snel ,

Delta Air Lines

(DAL) - Get Report

is restructuring its technical operations unit in an effort to save $240 million over five years.

The nation's third-largest airline, which is struggling with tight liquidity and high fuel costs, will outsource heavy maintenance on MD-88 and MD-90 planes to Avborne of Miami, Fla. It has also contracted with Air Canada Technical Services, located in Vancouver, Canada, to perform heavy maintenance on its 757s and 767s.

Delta disclosed the plans Tuesday in a memo to employees that it also filed with the

Securities and Exchange Commission

.

The restructuring will contribute to Delta's previously announced target of eliminating 1,600 to 2,000 technical operations jobs. Overall, the airline hopes to cut 6,000 to 7,000 jobs as part of its transformation plan.

Delta shares were up 17 cents, or 4.3%, at $4.15 in premarket trading.

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