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Airline Industry

Jovan Holmes
9/28/01
Reading Article

Source of Current Reading Article
The Wall Street Journal, September 27, 2001,pgA8
Delta Joins Major Carrier in Cost Cuts, With Plans to Lay Off 16% of Work Force

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Summary

Delta Airlines feels that they need to lay workers off because of the drastic decline in sales.Delta is offering six voluntary programs, one to five year leaves, an early retirement plans, and a voluntary severance package that provide as much as 20 weeks' pay and other benefits.Delta is cutting many of their flights trans-Atlantic routes which they think would likely be hit harder due to the U.S. strikes back at terrorists.After the attack Delta is averaging a passenger load of about 140,000, compared with 300,000 the day before it.Delta is not the only airline choosing the route of laying employees off, ContinentalAirlines, and Northwest Airlines

Critique

I feel that this Delta airlines issue is a business ethical situation.On the business side the company is looking at the big decrease in sales.So in order for company to start making profits they must decrease their liabilities.The easiest way to do that from the companies prospective isto let go of some employees. On the flip side there is a ethical issue in the air.It is not right to lay people off every time business gets bad.Delta employees have families to support and bill to pay just like the next person.There are some laws protecting employees from lay offs like unions.Everyone does not join unions because they feel they are a waste of money, but who would have though terrorist would hit the airlines industry.There needs to be some kind of compromise between the business side and the ethical side to come to some kind of resolution….

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