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Delta Airlines to cut 13

Other airlines: UAL, AMR, Northwest Airlines, US airways, British Airways, Air Canada and Continental are ... Situation: lower demand for air travel, has led to lower revenues. ...

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Delta Airlines to cut 13

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    Slide 1:Delta Airlines to cut 13,000 jobs amid lower demand after attacks

    WSJ article 9/26/01 Presented by: C. Faugčre

    Slide 2:Delta airlines will cut 13,000 jobs. Other airlines: UAL, AMR, Northwest Airlines, US airways, British Airways, Air Canada and Continental are also cutting jobs. Situation: lower demand for air travel, has led to lower revenues. Operating costs have also increased (higher cost per passenger-mile). Delta (and probably other airlines) is reducing capacity and cutting capital expenditures, reducing employee cost, and trying to cut operating costs down. But government intervention can slow that process down, and even revert it, if demand picks back up in the near future. Let’s look at the GRID:

    Price Quantity D1 D0 S1 medium run Q*1 Q*0 P*0 P*1 S0 short run Air Travel Market
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