Delta Airlines is planning an overhaul for the record books. Their plan to re-engineer is an effect of the success of low-cost carriers. In fact, it is likely that if something isn’t done quickly, Delta will not survive. Some fear that if the majority of their pilots decide to retire and cash in their benefits, Delta will be faced with Chapter 11 bankruptcy.
The main focus of the re-engineering is to, of course, minimize costs. Experts say they need to cut costs by $2.7 billion by 2006, and the most likely of strategies is through wage concessions from Delta pilots' union and executives as well. Some of their plans include cutting 7,000 jobs, re-structuring their network, and expanding Song.
One of Delta’s errors, in my opinion, is that their attempt is too late. It may be too late for the re-engineering plan to save them. It sounds like they know what they have to do, but time is against them. Could they have forcasted this a long time ago and dealt with the necessary changes in a different way?