Delta Air Lines Inc. has sued regional contractor Republic Airways Holdings Inc., saying the carrier failed to supply a full schedule of flights as promised.
Indianapolis-based Republic has been unable to fulfill an unspecified number of flights for Delta’s regional operation, Delta Connection, according to the suit filed Monday in state court in Atlanta. That led Delta to find replacement flights and occasionally re-book passengers and issue refunds, costing direct damages exceeding $1 million, Delta said in the suit.
Republic’s Shuttle America Corp. unit is one of several regional carriers that transport passengers from small airports to Delta’s large hubs. Delta spokesman Michael Thomas declined to comment on the suit Tuesday. Last month, he said Shuttle America operates 309 daily flights for Delta Connection.
Republic said on July 24 that its standoff with pilots over a new contract was hurting operations, sending the shares down and causing the company to lose more than half its market value the next trading day. The lack of such an agreement exacerbated its pilot shortage, the company said, and threatened to force the company into a court-supervised restructuring. The two sides reached a tentative agreement late last month, easing worries of bankruptcy.
Delta’s lawsuit, heavily redacted to conceal contract information, said Shuttle America operates 71 aircraft for Delta Connection, a mix of 50-seat, 70-seat and 76-seat Embraer SA planes. Delta faults the company for making its pilot shortage worse by agreeing in September 2014 to take on additional flying for United Continental Holdings Inc.’s regional operation.
Delta is seeking damages, including loss of profits and other costs. A Republic spokesman didn’t immediately return a phone call.
Indianapolis Business Journal
DL-1490 has fire in the loo
A Delta Airlines Boeing 737-800, registration N3748Y performing flight DL-1490 from Detroit,MI to Las Vegas,NV (USA) with 161 people on board, was enroute at FL340 about 60nm west of Omaha,NE (USA) when the crew reported a fire in a lavatory and decided to divert to Omaha. On approach to Omaha the crew advised that the fire was confirmed out. The aircraft landed safely on Eppley Airfield’s runway 14R with emergency services on standby , vacated the runway and taxied to the gate requesting the fire trucks to follow them to stand.
The Aviation Herald
Delta Air Lines to cut office workforce for increased productivity
Delta Air Lines Inc. is planning an unspecified number of job cuts among its 10,000 management and salaried employees in a move to boost productivity.
The reductions will affect support roles such as human resources and communications, not front-line workers on planes, spokeswoman Ashley Black said Friday in a telephone interview. The moves may come in locations worldwide, including Delta’s headquarters in Atlanta, said Black, who wouldn’t elaborate on specifics of the dismissals.
Delta and its U.S. peers remain highly profitable even as they reap less revenue from each seat flown a mile, an industry benchmark. The carrier probably will report record third-quarter earnings excluding some items of $1.3 billion, according to analysts’ estimates compiled by Bloomberg. That release is set for Oct. 14.
“We must continue to look for ways to improve productivity and stay nimble particularly given that revenue has declined this year,” Black said in a statement. “Over the course of the next few months, Delta will reduce some salaried positions while continuing to hire flight attendants, pilots, reservations specialists and other front-line employees.”
Delta announced on Sept. 16 that office staff, ground crews and flight attendants would receive a 14.5 percent pay raise effective Dec. 1, although it was offset partly by a reduction in future profit-sharing payments.
Industry newsletter PlaneBusiness.com reported earlier Friday that job cuts were under way at Delta.
Bloomberg Business
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