The president of
Delta Air Lines'
discount carrier, Song, has resigned, according to a Friday report.
John Selvaggio had headed up the low-cost carrier since its inception a year and a half ago, when it received top-level backing from then-Delta Chief Executive Officer Leo Mullin. Song initally fell out of favor with Delta's new corporate chief Gerald Grinstein, who took over last January, but has since been assigned a key role in the airline's recently-announced turnaround plan.
Selvaggio is the most prominent in a stream of Delta executives who have recently departed as the airline attempts to right its struggling business. The
quoted a corporate memo that said Selvaggio was leaving "to pursue personal interests."
Meanwhile, on Tuesday, Grinstein told employees he would
forgo his salary for the rest of the year as part of a broader push to cut labor costs. Starting Jan. 1, all executives and supervisory, administrative and front-line employees will take an across-the-board pay cut of 10% and shell out more dollars for health care.
Under its restructuring plan, Delta plans to lay off up to 7,000 employees in a bid to reduce costs by $2.7 billion by 2006.
In regular trading Friday, the stock closed up 16 cents, or 4.9%, to $3.45.