Thread regarding Delta Air Lines Inc. layoffs

Securing Delta’s Position In This Crisis

Internal Memorandum

  • Date: Friday, March 20, 2020
  • To: Delta Colleagues Worldwide
  • From: Ed Bastian, CEO
  • Subject: Securing Delta’s Position In This Crisis

It has been an extraordinary few weeks, to say the least, for our business, our nation and our world. Just over a month ago we were celebrating a record Profit-Sharing Day; today we face the greatest economic challenge in our history as the world grapples with the growing COVID-19 (coronavirus) pandemic.

I want to thank the more than 13,000 people who have stepped up to take voluntary unpaid leaves – this is the most important thing anyone can do right now to support Delta. While I’m grateful to the thousands that have volunteered, we could use more, so please seriously consider whether this is the right short-term decision for you and your family.

Earlier this week I outlined the serious threat to our business and the difficult actions we’re taking over the next few months to protect our company. Our revenue outlook continues to deteriorate in the short term with the decline in travel demand. We’re now projecting our June quarter revenues will be down by $10 billion compared to a year ago – an 80 percent reduction. It’s also clear, given the underlying damage the virus has created to the overall economy, that demand recovery will take an extended period once the virus is contained.

In light of the unprecedented challenges facing us, we have entered into a $2.6 billion secured credit facility and are drawing down $3 billion under our existing revolving credit facilities. This will help fortify our cash position in the coming weeks and months. To put this in context, despite all the self-help measures we are taking, we are currently burning roughly $50 million in cash each day.

We also continue working with the President and Congress on disaster relief assistance, which is vital to protect our industry’s critical role in our nation’s economy. Amid those discussions, in recent days some critics have argued that the airlines have not been good stewards of our money during our profitable years. At Delta, nothing could be further from the truth. Our philosophy has always been a simple one: We put 50 percent of our operating cash flow back into our business by investing in our people and our customers, use 30 percent to pay down debt, and return 20 percent to our owners.

In fact, over the past five years Delta has invested over $20 billion in new aircraft, airport enhancements, technology and customer service improvements; and invested $19 billion in our people via profit-sharing and pension contributions and payments. In addition, we increased base pay by 30 percent during that period and regained the confidence of the financial markets by earning back our investment-grade credit rating. When the extent of the COVID-19 crisis became clear, we immediately suspended our share repurchases, and our Board of Directors has voted to suspend future dividend payments.

While these actions will help, the innovation of our people has always been our most powerful tool, and we need it more than ever to protect the future of our company. I have received a remarkable number of ideas and offers to help from Delta people across all divisions as well as our merit employees. We’re reviewing them all and will be making decisions soon on next steps to preserve cash, fortify our future and plan for our eventual recovery. We are exploring all options on help we will need from both merit and frontline people.

See More AT:
http://www.idahoreporter.com/2020/delta-airlines-internal-memo-we-are-burning-50m-in-cash-a-day/

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| 1775 views | | 5 replies (last )
Post ID: @OP+1453SuPv

5 replies (most recent on top)

Again this sounds like some Union propaganda This whole thing extends to ALL airlines and certainly some Airlines will be much worse off. Yes Delta is burning through cash, you think the other airlines are exempt?? Yes I am Delta Proud, you forgot to put the headliner in here that there are over 13,000 employees who have already volunteered to take a 30, 60 or 90 day leave without pay @Delta Proud. You didn't say anything about all of the Direct managers and CEO have voluntary taken a pay cut @ Delta Proud. Tell me how many other airlines have taken this action??

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Post ID: @2yjd+1453SuPv

Delta you took years and never gave a dam about my pension and the illegal stuff you did. I will write and do all I can as you beg for help yet have in the past treated your passengers with the highest fares and customer service s—s .....I saw a gate agent tell a passenger to take to his hand!!!!!!!!! You charge for eveything even an emergency row exit that a person is willing to sit in and help others in a crash! I beged you for my little of nothing pension and you teated me like sh– and never gave me a thing. duing 9/11 you went for bail out and never lost a plane . I loved my job you did not care all you cared about was power and the some went for your passenger . I was told to never give a passenger wavier even though they may have had many missed flights due to delays..........You act so Hubble when it is about you needs you should have acted humble all along .......DO NOT BAIL THIS COMPANY OUT THEY DO NOT GIVE BACK TO THE FLYING PUBLIC OTHER THAN HIGH FARES!!!!!!! THEY FILED BANKRUPTCY! AND THE SAME DAY SO DID NORTHWEST! THEY PUT ASA OUT OF BUSINESS AND DAY OUT OF BANKRUPTCY THEY BOUGHT NORTHIWEST AND TOOK PENSION MONEY FROM PILOTS AND THEY HAD TO GO TO COURT....I COULD GO ON FOR DAYS . LET THEM SICK OR SWIM AS THEY HAVE DONE TO EMPLOYEES AND PASSENGERS! NO BAIL OUT ON OUR TAX MONEY!

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Post ID: @1btl+1453SuPv

I worked for Delta and I have no mercy or respect for them. I took a leave after 9/11 for them and the manager never turned my paper work in she never got talked to over it! I made me sign papers to say I could noever move up in the company because I married someone working there evein though I was a full time employee at Delta befire that happened, so I had to divorce my husband now they allow men to merry men!!!!!!!!! They were the first to go for a bail out after 9/11 we nevr lost a plane!!!!! I ahve wacted them take pilots pension and many other things done to good people while the CEOS WENT OUT RICH AND HIRE ON WITH A GIVEN 22 YEARS OF SERVICE!!!!!!!!!!! DO NOT SUPPORT A BAIL OUT OF THE AIRLINES THEY ALL TAKE AND GIVE LITTLE THEY ARE STILL FLYING PEOPLE ALL OVER THE PLACE TO SPREAD THE VIRUS AND YET COFFEE SHOPS HAVE CLOSED AND BEACHES IN FLORIDA THAT THEY ARE BRING MORE PEOPLE TO US SO WE SUFER . RENT A CAR IF YOU NEED TO GET HOME WE DID DURING 9/11 .......DO NOT SUPPORT A BAIL OUT DUING A TIME THEY ARE STILL MAKING MONEY AND WE ARE LOSING IT!!!!!!!!!!!!

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Post ID: @1hgg+1453SuPv

Yeah, it's the airline's fault you didn't book seats next to each other.

Please focus on the bigger picture in these very challenging economic times. The vast majority of employees, vendors, suppliers, etc. have nothing to do with management decisions and are going to be hit hardest.

Any government support should come with provisions of no stock buy backs allowed.

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Post ID: @ewc+1453SuPv

Burning roughly $50 million in cash each day.

Airlines before C19: "Yeah, we're gonna start charging you to have luggage, the f— are you gonna do about it? Here's your seat away from your family, we just reduced the leg room again, have fun dipshit"

Airlines now: "We come to you on bended knee, your humble travel provider, always loyal to our customers - we need your support in this trying time"

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Post ID: @xbw+1453SuPv

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