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Grinstein Says Delta May Ask Retirees To Return
By
Greg Levine, Forbes
United
States
October 18, 2005
Not the "retiring" type: Gerald Grinstein is determined to keep'em flying.
The chief executive of bankrupt Delta Air Lines (nyse: DAL - news - people ) said Tuesday that his carrier will ask its pilots union to extend a deal to recall retired pilots to prevent staffing shortages.
Many of the fliers had relinquished their cockpits early. Delta saw 1,190 pilots retire over the last year, as fear spread that they'd lose their pension benefits if Grinstein's firm filed for Chapter 11 protection--which it did on Sept. 14. , the same date that Northwest Airlines (nasdaq: NWAC - news - people ) also filed.
But Grinstein needs his flyboys back. The No. 3 U.S. airline plans a massive international expansion, to gain parity to rivals and fight its way back from bankruptcy. According to a report in The Associated Press, most carriers glean 60% to 75% of their revenue from domestic flights and the rest from international flights. The airline says its goal is to earn 35 percent of its revenues from international routes by 2007; some 20% of Delta's revenue now comes from international flights.
Grinstein told reporters gathered at the Atlanta airport about the likelihood of asking the union to extend its retired-pilot recall agreement. Originally intended to help prevent labor shortages, the recalls would help staff the enormous international expansion.
The CEO said the current deal, first reached in September 2004, runs out Dec. 31. "We expect to be able to man that equipment," the AP quoted Grinstein as declaring. A union spokesman did not immediately return a call Tuesday seeking comment
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