Fuel costs may force Delta Air Lines to cut more flights

Delta Air Lines, based Atlanta, Georgia, the United States, is considering suspending more flights in the face of rising fuel costs. “The reductions in flights will expand on domestic cutbacks of as much as 11% announced earlier in 2008, which include grounding 90 airplanes and eliminating the jobs of 3,000 employees who took buyouts,” Ed Bastian, president of Delta Air Lines, was quoted by the media as saying.

“We will continue to look at capacity very closely in light of fuel prices and make sure we have the appropriate amount of capacity in the domestic market given record fuel prices,” a spokesman of Delta Air Lines said. “If that requires additional capacity cuts, we will take those steps as needed.”

Already, five airlines in the United States – American Airlines, United Airlines, Delta Air Lines, Northwest, Continental, US Airways and Alaska Air – have requested the US federal government to let them suspend flying without penalty on international routes in the next 2 years because of high fuel costs. This means that these airlines want to be able to stop flying in periods of low demand without losing authority to resume the routes.

Delta Air Lines is already cutting over 3,000 jobs through voluntary retirement and separations. The carrier’s earlier target was to cut 2,000 jobs.

Meanwhile, Delta Air Lines is set to become the world’s largest carrier by acquiring Northwest Airlines, major airline in the United States, headquartered in Eagan, Minnesota.

Antitrust officials at the United States Department of Justice have asked Delta Air Lines Incorporated and Northwest Airlines Corporation for more information on their proposal for merger, according to statements from both the companies.

According to an analyst, quoted by the website startribune.com, “the move by the Department of Justice is the first formal indication that the investigation of Delta’s friendly attempt to buy Northwest is moving forward on a timetable largely anticipated by legal and aviation experts.”

“The Justice Department, which must determine if the deal would obstruct competition and hurt consumers, confirmed its review,” the report on the website added.

Delta Air Lines had submitted the proposal of merger with Northwest Airlines to antitrust officials and shareholders in April 2008.

In the statement, Delta said it is “committed to working cooperatively with the Justice Department and remains confident of a successful close of the deal.”