Delta's chief executive has sent a memo to his employees warning them that the airline's reorganization plan is not shielding it from brutal competition, and that the airline would have to do more to avoid seeking bankruptcy protection. One problem, the chief executive said, was that the airline was only partly through its revamping plan, including cutting up to 7,000 jobs. Delta barely avoided a bankruptcy filing last October, after its pilots, which are its only unionized labor group, agreed to grant wage and benefit cuts worth $1 billion a year.
See "Delta Says It Needs More Cuts; Shares Drop", Micheline Maynard, The New York Times, July 27, 2005