Delta Plans Buyouts, Early Retirement Offers
ROMULUS (WWJ/AP) - High gas prices aren't just affecting drivers. Delta Airlines, the biggest carrier at Detroit Metro Airport, plans to make cuts because jet fuel prices have been taking off.
Delta Air Lines said, Friday, that it will begin offering voluntary early retirement and buyouts to its employees because it needs to shrink to cope with high jet fuel prices.
Delta CEO Richard Anderson said on a hot line message to workers that the world's second-largest airline will cut flying by at least 4 percent starting in September. He said Delta needs to cut costs, such as labor, that go along with less flying.
Oil prices dropped sharply on Thursday, but Anderson said they're still far from a level that would have been considered normal by historical standards.
Workers with 10 years of service whose age and service total at least 55 years are eligible for the retirement offers, while employees with five years of service can take a buyout package.
The price of gas in Michigan hit a record high, earlier this week.
The Associated Press contributed to this report.
