Delta finally cuts its Memphis hub loose, slashing both flights and jobs

Delta Air Lines Inc. said it will cut 230 jobs and reduce daily flights at Memphis, Tennessee, after changes in operations failed to make the hub profitable.

The extensive use of inefficient 50-seat jets in Memphis and high jet-fuel prices that make them expensive to operate were blamed for the decision to scale back operations, two Delta executives told employees today in a memo that was made available by the Atlanta-based airline.

Delta has been retiring older 50-seat aircraft in favor of larger planes that are more fuel-efficient, have more room and offer dual-class cabins. Service at Memphis, which was one of eight U.S. hub airports, will fall to 60 flights a day. Peak daily departures are now 93 a day, according to Delta’s website.

Job reductions will take effect Sept. 3 and will involve Memphis airport customer-service and cargo employees, the airline said. Workers can seek transfers or accept retirement or severance packages, Delta said.

Editors: John Lear, Cecile Daurat. To contact the reporter on this story: Mary Schlangenstein in Dallas at maryc.s@bloomberg.net. To contact the editor responsible for this story: Ed Dufner at edufner@bloomberg.net.