Photo © Kazim Alikhan - t.dot photography
Photo © Sean Norman
Delta Air Lines has suddenly cancelled a maintenance contract with a subsidiary of ACE Aviation Holdings Ea move that will cost 700 workers in Vancouver their jobs.
Delta's contract with ACTS was for the airframe maintenance of the airline's Boeing 767s. The five-year, $300-million US deal was signed in May 2005, but has been terminated early.
Delta, the third-largest U.S. air carrier, has been operating under Chapter 11 bankruptcy protection since September 2005. It has been restructuring to slash costs.
"ACTS has worked extremely hard to make the relationship successful," CEO Chahram Bolouri said in a statement issued late Tuesday. "Unfortunately, we are not in a position to meet Delta's cost expectations."
The end of the contract will hit the maintenance division's Vancouver operation especially hard. Out of the 1,000 ACTS employees in that city, 700 will be let go. The layoffs will begin in June and be carried out through the summer. By the fall, only 300 ACTS workers will be left in Vancouver.
"We recognize and regret the impact this will have on our people, and we will work closely with them and their representatives in the coming weeks to mitigate the circumstances for affected employees as much as possible," Bolouri said.
I have no idea what happened, why so suddenly? What does Delta's cost expectations mean?
It's a shame, as YVR was probably the only airport in Canada where you could spot Delta's 767's on a regular basis.