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Text Of Delta's Chronology Article

Thu Sep 09, 2004 2:28 am

I posted a different forum earlier w/ a link to the AJC, but I forgot you had to register...so here's the text of the article for those of you who don't want to.

But, I encourage you all to do so b/c they're online DL coverage on the business page is very detailed.

Delta chronology: Three years of pain
Staff report
Published on: 09/08/04

Some key events in Delta's three-year slide, which followed several years of strong profits.

LOSING STREAK
Following a run of strong profits in the mid and late '90s, Delta has lost money in 13 of the past 14 quarters. (Figures in parenthesis indicate losses.)
2004
2nd quarter: ($1.96 bil)
1st quarter: ($383 mil)
2003
4th quarter: ($327 mil)
3rd quarter: ($164 mil)
2nd quarter: $184 mil
1st quarter: ($466 mil)
2002
4th quarter: ($363 mil)
3rd quarter: ($326 mil)
2nd quarter: ($186 mil)
1st quarter: ($397 mil)
2001
4th quarter: ($734 mil)
3rd quarter: ($259 mil)
2nd quarter: ($90 mil)
1st quarter: ($122 mil)

April 2001 — Delta posts its first quarterly loss in six years as the economy cools and business travel slows.

June 2001 — Delta and its pilots union sign new contract putting pilots atop industry pay ladder.

Sept. 11, 2001 — Terrorist hijackings temporarily shut down industry and subdue travel demand for rest of year

Sept. 25, 2001 — Delta announces up to 10,000 job cuts, most through voluntary exit offers. American and United have already announced 20,000 job cuts each in wake of 9/11.

January 2002 — Delta posts $1.21 billion loss for 2001.

October 2002 — With no rebound in sight Delta announces up to 7,000 to 8,000 more job cuts. (Later the airline says total job cuts were about 16,000, though headcount didn't fall that much because of hiring at regional subsidiaries.)

January 2003 — Delta posts $1.27 billion loss for 2002.

March 2003 — Controversy erupts with disclosures that Delta management, with board approval, spent nearly $43 million in 2002 on executive bonuses and pension trusts, despite huge losses and federal aid.

May 2003 — Delta asks pilots unions for deep cuts in wage rates.

December 2003 — CEO Leo Mullin, hurt by pay controversy and unable to get pilot deal, takes early retirement. He is replaced by longtime board member Gerald Grinstein. Other members of Mullin's team follow in coming months.

January 2004 — Delta posts $773 million loss for 2003. Grinstein orders strategic overhaul.

May — Analysts speculate Delta could follow US Airways and United into Chapter 11 bankruptcy court protection if it cannot cut costs and retool. Company later acknowledges that possibility.

July — Pilots offer concessions worth up to $705 million a year, contingent on cuts from other parties as well; Grinstein responds that Delta must get $1 billion a year.

August — Grinstein briefs board on strategic review that he promises will take Delta into "uncharted airline territory." He releases no details except to say the new plan will mean more job cuts and pay and benefits changes.
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