Delta and Northwest keep cutting away
Submitted by admin on June 19, 2008 – 6:26 amNo Comment
Delta Airlines and Northwest Airlines have announced cutbacks in their capacities this week, as both carriers struggle with high fuel costs. Delta announced a further 3% cut to go on top of a 10% cut they had already announced in March. Northwest will make a 8.5% cut in capacity. Both airlines are expected to merge in the near future, which should help them further lower costs.
Delta has implemented various strategies to survive the hostile airline market, such as fare increases, a fuel hedging program to offset the high cost, and offering early retirement to employees who decide to retire before they are forced to retire.
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