Delta shuts in-flight operations in India

MUMBAI: Even as the Atlanta-based Delta becomes the first American airline to fly non-stop between Mumbai and New York, it has decided to wind up its in-flight operations in India. Delta has laid off 99 employees from its India operations, of which 97 were based in Mumbai and two in Chennai. All the retrenched employees are inflight staff who operated flights from India to Europe.

On the reason behind the closure, Delta officials said, “It is necessary to restructure the in-flight service staffing model for the non-stop flight as the JFK-BOM flight will be staffed by US-based crews.”

Delta is aligning staffing in India with other international destinations, according to the communiqué, which means that the airline would staff their planes from India to the US in the same manner as planes from other destinations to the US would do.

This is the second time Delta is restructuring its India operations. Even though its call centre operations saved the airline $25 m in ‘03, it offloaded nearly 1,000 employees the next year when it moved the voice process back to the US. Delta had filed for bankruptcy last year, and its liabilities exceeded its assets by almost $7 bn.

Industry observers feel that cost is not a factor that has led to Delta winding up its operations. According to an observer, “There’s a possibility that a US statute does not allow non-US crew on an American flight flying directly into the USA.”

Previously, Delta had a stopover in Paris en route to the US where the Indian crew disembarked. Now, with direct flights to the USA, Indian crew wouldn’t be allowed on a US airliner unless they have US work permits.

The lay-off is expected to take place over a few months. Delta’s non-stop flight between Mumbai and JFK will commence on November 1, by which time Delta Airlines would complete the layoff of its flight staff.

The airline is offering a voluntary retirement scheme (VRS) to its in-flight personnel, the details of which were not available. Employees who don’t take up VRS will be retrenched in accordance with the Industrial Disputes Act, 1947 and other applicable Indian labour laws, according to Delta.