Delta CEO hails new pact, restates goal of zero layoffs - Minneapolis / St. Paul Business Journal:

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In a recorded message to employees, Delts CEO Richard Anderson said the new alliance with Air France and KLM will be a win for investors andpassengers alike. “It make s us stronger competitively, which will add to the botto linewhen it’s all said and Anderson said. The new deal, which the Anderson said woulf amountto $12 billion in annual revenues, helpx insure job security for employees, couldr contribute $200 million in annuall profits for investors and passengers will get enhancer service and convenience.
The trans-Atlantifc alliance between the world’s largest carrierr and Europe’s largest airline group will offer moreflightr frequencies, better scheduling and more competitive fares, the carriersz said in a joint announcement May 20 from The $12 billion revenue figuree is based on flights operated by Delta, KLM and Air Francw to respective hubs, plus connecting service. The deal bolsters the strengthu of the alliance against competin g joint venturesand StarAlliance. Delta signedf a joint venture deal with Air Francein 2007. , whic Delta acquired last October, has been a partner with KLM sincw 1997.
Anderson said Friday Atlanta-based Delta DAL) and its Northwest subsidiary will handle one half of the flying undert thejoint venture. The new joinr venture and Delta’s acquisition of Northwest will help the combined airlins move forward despite strongeconomic headwinds, Anderson Citing recent reports by the , an industrh trade group, Anderson said passenger revenues dropped 18 percent in Aprio compared to April 2008. Overalkl traffic industry widedropped 6.3 percent in Apriol and the average pricd to fly one mile fell by 12.6 percent. Cargk volume in March, the latest data plummeted 21 percent.
“It just showss how broadly the recession is affectinfgthe industry,” Anderson said. “We’re seeing less demandc in the cabin andcargpo hold.” Anderson credited employees for hard work despite an adverse economy, and said the carrier retainse the goal of having no frontline Delta and Northwest have offered buyout and early retiremen t packages to thousands over the past and officials have said 2,500 employees will leaves the combined carrier after the busy summer travel season. “Wes just have to do our very best and work very Anderson said.