Company Watch - Delta Air Lines.

Delta Air Lines

Delta Air Lines will cut approximately 1,000 management and administrative jobs, according to an internal memo released last week cited by press reports. Last fall the bankrupt carrier targeted 7,000-9,000 positions throughout the company for elimination by next year. Among the departures will be marketing head Paul Matsen. It is not clear if Matsen's departure is related to the cuts. Mar 31, 2006

Delta marketing chief leaves as carrier cuts costs. Delta Air Lines marketing chief Paul Matsen has left the carrier. Matsen helped launch the carrier's Simplifares program, which capped certain airfares. Delta said it will not replace Matsen. Separately, Delta on Wednesday said it will cut administrative and management employment by 20%. Mar 30, 2006

Delta Air Lines and its pilots, represented by the Air Line Pilots Assn., were told last week by a three-man arbitration panel to continue negotiating ahead of an April 15 deadline and to submit confidential progress reports on April 3 and 7, according to press reports. Arbitrator Richard Bloch said a ruling by the panel would constitute "an abandonment of responsibility that will and should haunt all of you." Meantime, ALPA's Strike Preparedness Committee will conduct a practice strike tomorrow. The union said on its website that a strike authorization ballot is open until April 4. Mar 29, 2006

Delta announced Monday that it received approval from the lenders of its $1.9 billion DIP credit facility to reduce the interest rate on its three term loans, resulting in annual savings of $30 million and a reduction of the interest rate in its post-petition financing from American Express Travel Related Services. Mar 29, 2006

Delta may consider selling Comair, CFO says. Delta Air Line's chief financial officer said the company may consider selling its Comair unit if it's able to restructure. Separately, a bankruptcy judge on Monday urged Comair and its flight attendants union to work out a contract agreement. The airline says it needs cost cuts to continue operations. Delta lenders lower interest rate: Some of Delta Air Lines' lenders have approved a lower interest rate for its debtor-in-possession financing. The agreement will save the company $30 million each year. Mar 28, 2006

Delta Air Lines announced yesterday that it will make a significant investment in improving passenger service at its Atlanta hub, adding 50% more lobby space, 24 self-service kiosks with international check-in capability, 14 lower-level check-in positions, redesigned gate seating and a new Crown Room Club on Concourse C. It has added 24 international routes from Atlanta since September and launched or expanded service in more than 30 domestic markets. Most changes will be completed next month. The lobby expansion and redesigned gates in Concourses A, B and T will be finished by summer 2007. Mar 29, 2006

Comair flight attendants prepare to fight proposed pay cuts Cabin staff at Comair, a Regional partner of Delta Air Lines, will be in bankruptcy court this week attempting to stop a proposed $8.9 million in pay cuts the company has said it needs to survive. Mar 28, 2006

Delta, Northwest restructuring fees add up. Bankruptcy fees are mounting at Delta Air Lines and Northwest Airlines. The carriers could owe lawyers $276 million in fees and expenses by the time they exit bankruptcy. Mar 27, 2006