Delta wants to reduce employee-related costs by $500 million by 2005

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Delta wants to reduce employee-related costs by $500 million by 2005


ATLANTA (AP) =97 Delta Air Lines said Wednesday it wants to cut=20
employee-related costs by $500 million over the next two years, but isn't=20
calling for more layoffs, as it detailed efforts to turn around the=20
struggling carrier. Atlanta-based Delta outlined 16 initiatives it hopes=20
will reduce non-fuel costs by 15 percent by 2005. The target does not=20
include Delta's proposal to cut pilot wages. It also does not call for more=
=20
workforce reductions, spokeswoman Peggy Estes said. Delta has reduced its=20
workforce by 16,000 employees through layoffs, attrition and voluntary=20
programs since the Sept. 11, 2001, terrorist attacks. "Our profit=20
improvement initiatives are the cornerstone of a broad transformation=20
taking place at Delta," said chief financial officer Michele Burns. "We are=
=20
restructuring every aspect of our company to make Delta a formidable=20
competitor in today's =97 and tomorrow's =97 economic environment."

The plan to cut employee-related costs involves a review of health and=20
pension benefits, contracted services and unspecified overhead expenses.=20
It's separate from the company's April proposal to cut pilots' hourly wages=
=20
by 22 percent, cancel pay raises due over the next year and reduce some=20
benefits. Delta also wants to rescind a 4.5 percent raise its pilots=20
received May 1. The pilots union's economic and financial analysis=20
committee has said it doesn't support the proposal. It has said the airline=
=20
needs to cut costs to survive but noted employees have already made=20
sacrifices. Other initiatives detailed Wednesday include putting more=20
self-service kiosks in airports and offering more low-fare travel options,=
=20
like its newly launched discount carrier. Last week, in another=20
cost-cutting move, Delta said it is shifting much of its advertising and=20
marketing services to an in-house team. Delta, the nation's No. 3 airline=20
behind American and United, lost $1.3 billion last year and $466 million in=
=20
the first quarter this year because of a downturn in the travel industry.

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