(Memphis) After September 3, Memphis will no longer be a hub for Delta Airlines.

This will mean the loss of 230 jobs.

According to Delta, “Despite a series of adjustments in recent years, high fuel costs and the predominant use of inefficient 50-seat regional jets in a small local-traffic market have made Memphis unprofitable as a hub. As we work to find the right level of service, the fall 2013 Memphis schedule will be reduced to approximately 60 daily flights.”

Delta plans to offer jobs elsewhere to those affected, “There are positions available for every eligible employee who stands to be affected by the schedule reduction at other locations across the system. Additionally, we have created a voluntary 55-point retirement package for MEM-based ACS and Cargo employees. We will also insource all ramp work beginning September 3.”

Commissioner Chris Thomas told us, “I’m very speechless and disappointed in this. I’m not really surprised because they’ve been cutting flights but this will hurt our economy and our image.”

Commissioner Terry Roland, “We need to get a lower price airline in here anyway. Delta has had a monopoly and I think if we can do something to get another airline it here it will bring the cost of flying.”

Read the Delta memo

Click here for reactions from Mid-South residents

MEMPHIS, Tenn. (FOX13) –

Despite a series of adjustments in recent years, high fuel costs and the predominant use of
inefficient 50-seat regional jets in a small local-traffic market have made Memphis unprofitable as a hub. As we work to find the right level of service, the fall 2013 Memphis schedule will be reduced to approximately 60 daily flights. This will unfortunately require a reduction of approximately 230 Memphis Airport Customer Service and Delta Cargo positions effective September 3.

FULL STATEMENT:
http://content.foxtvmedia.com/whbq/GilTonyMemotoMEMACSCGOemployeesFINAL.PDF

There are positions available for every eligible employee who stands to be affected by the schedule reduction at other locations across the system. Additionally, we have created a voluntary 55-point retirement package for MEM-based ACS and Cargo employees. We will also insource all ramp work beginning September 3. There will be many moving parts as the reduction process plays out through the summer.

Whether or not your job will be affected depends on what your seniority will
hold once we know how many take the 55-point retirement option.

Eligible employees will soon be provided with a packet that contains details of your options,
including a voluntary retirement package, transfer options with relocation assistance or furlough with severance pay. There is also a QA document that will answer many of your early questions.

We know you’ll study these options carefully and please know that your leadership will be available to help you determine what is right for you and your families.

Delta has a tradition of taking care of its people and especially when the tough realities of our
business present themselves. You have our shared commitment that your questions and concerns will be addressed in the weeks ahead. Please take advantage of the resources you’ll have access to with ACS, Cargo and HR leaders in Memphis today and through the summer.
The new schedule will preserve nearly all the top destinations for Memphis customers. The biggest piece of the schedule reduction is 50-seat regional jet flying, as those aircraft begin to come out of the fleet.

We appreciate your professionalism and understanding of this tough business decision.

Gil Tony

By Alwyn Scott

(Reuters) – Delta Air Lines wants the U.S. Export-Import Bank to stop helping state-owned foreign airlines buy wide-body jets from Boeing Co , and would be willing to forgo such support for its own purchases of smaller jets if all such subsidies were eliminated, the chief executive said on Wednesday.

“We would be perfectly willing, if we had a total moratorium on narrow-body and wide-body financing, to forego” export credit help on narrow-body jet purchases, Delta CEO Richard Anderson said in an interview with Reuters.

“We are trying to do whatever we can to get a level playing field in a world where my government decides that they would rather have my competitors in the marketplace than Delta,” he added.

He said airlines with good credit can get market-rate funding without “giving them the balance sheet of the U.S. government.”

Last month Delta sued the Ex-Im bank to stop such support of wide-body jet sales, affecting Boeing’s 777 and 787 planes, noting especially Emirates airline and Korean Air as among the biggest buyers who do not need U.S. government support. Delta was joined in the lawsuit by the Air Line Pilots Association, which represents 47,000 pilots at 28 U.S. airlines, and Hawaiian Airlines, the largest carrier in Hawaii.

In the interview, Anderson said he is not opposed to the Ex-Im Bank in general, or export credits for sales of smaller, narrow-body jets if the export credit system was reformed.

But he said it was wrong for the U.S. to decide that manufacturers such as Boeing are more deserving of export credits than airlines and other travel services companies.

“I don’t think there is any good rationale for deciding that any manufacturing production in the U.S. is more important than travel and tourism, which is a much bigger contributor to GDP in the U.S. than manufacturing,” he said.

In its lawsuit, Delta says that about 46 percent of the $106.6 billion in U.S. Ex-Im Bank’s current financial commitments are for aircraft loans or loan guarantees.

(Reporting by Alwyn Scott; Editing by Bernard Orr)

By Alwyn Scott

(Reuters) – Delta Air Lines Inc wants the U.S. Export-Import Bank to stop helping state-owned foreign airlines buy wide-body jets from Boeing Co , and would be willing to forgo such support for its own purchases if all such subsidies were eliminated, its chief executive said on Wednesday.

“We would be perfectly willing, if we had a total moratorium on narrow-body and wide-body financing, to forego” export credit help on narrow-body jet purchases from Bombardier , Delta CEO Richard Anderson said in an interview with Reuters.

In December, Delta ordered 40 Bombardier CRJ900 regional jets with an option for 30 more in a deal worth up to $3.29 billion.

“We are trying to do whatever we can to get a level playing field in a world where my government decides that they would rather help my competitors in the marketplace than Delta,” he added.

Airlines with good credit can get market-rate funding without “giving them the balance sheet of the U.S. government,” Anderson said.

Delta sued the Ex-Im bank last month in an effort to stop support for Boeing’s 777 and 787 planes, noting that Emirates airline and Korean Air are among the aircraft’s biggest buyers and do not need U.S. government aid. Delta was joined in the lawsuit by the Air Line Pilots Association, which represents 47,000 pilots at 28 U.S. airlines, and Hawaiian Airlines, the largest carrier in Hawaii.

The U.S. Ex-Im Bank said its policies supported some 85,000 U.S. aerospace jobs last year.

“As long as other export credit agencies around the world continue to support their aerospace companies, Ex-Im will continue to provide financing to ensure a level-playing field for American companies and to prevent a loss of jobs here at home,” the bank said in a statement emailed on Wednesday.

In the interview, Anderson said he is not opposed to the Ex-Im Bank in general, or export credits for sales of smaller, narrow-body jets if the export credit system was reformed.

But he said it was wrong for the U.S. to decide that manufacturers such as Boeing are more deserving of export credits than airlines and other travel services companies.

“I don’t think there is any good rationale for deciding that any manufacturing production in the U.S. is more important than travel and tourism, which is a much bigger contributor to GDP in the U.S. than manufacturing,” he said.

In its lawsuit, Delta says that about 46 percent of the $106.6 billion in U.S. Ex-Im Bank’s current financial commitments are for aircraft loans or loan guarantees.

(Reporting by Alwyn Scott in Seattle,; additional reporting by Tim Hepher in Paris and Doug Palmer in Washington, D.C.; Editing by Bernard Orr and Leslie Gevirtz)

NEW YORK (AP) — Delta’s formula for winning over New York travelers is simple: floor-to-ceiling windows, abundant power outlets and a burger joint with a cult-like following.

The airline opened a sprawling $1.4 billion terminal at Kennedy Airport Friday, a facility more suitable to the high-paying passengers it is trying to attract.

The 346,000-square-foot concourse offers upscale food and shopping options, increased seating and sweeping views of the airport.

It replaces a terminal built by Pan Am in 1960 that was once cutting-edge but had deteriorated, becoming an embarrassing way to welcome millions of visitors to the United States.

Delta Air Lines CEO Richard Anderson said his customers “and the residents of New York now have the international hub facility that they expect and deserve.”

Kennedy Airport is still the primary gateway to the U.S. It welcomed 13.1 million inbound international passengers last year, more than any other American airport, according to U.S. Customs and Border Protection. Miami International Airport was next at 9.8 million, followed by Los Angeles International Airport at 8.3 million.

Delta carries about 2.1 million of those arriving international passengers at JFK, more than any other airline, according to the airport’s operator, the Port Authority of New York and New Jersey.

The facility doesn’t compare to the over-the-top cathedrals to air travel that some cities in Asia and the Middle East have built in the last decade. But travelers will appreciate both the big and small touches. The concourse houses local restaurant favorites like Blue Smoke and Shake Shack, a New York-based burger chain. Meanwhile, 75 percent of seats at the gates have access to electric outlets.

The most unique part is a 2,000-square-foot rooftop deck that offers a close-up view of the runways and airplanes. But it is part of a new Delta Sky Club — the largest in the Atlanta-based airline’s system — accessible only to members or passengers flying in transcontinental or international business class.

Like at any modern airport, fliers should be prepared for a long walk — it can take up to 15 minutes to reach the furthest gate.

“I did need a plane ride to get from the entrance to here today,” joked U.S. Rep. Joe Crowley, D-N.Y.

The expansion added nine new gates at the terminal. Construction is expected to soon begin on 11 additional gates for Delta’s smaller regional jets.

The airline hopes by 2015 to move all of its operations to Terminal 4. Until then, Delta will use a fleet of ten buses to shuttle passengers between Terminal 4 and its other operation in Terminal 2. Delta’s lease in that terminal ends in 2020.

New York is one of the few big cities in the U.S. not dominated by one airline. Carriers fight viciously to win the business of bankers, lawyers and consultants based in the city whose companies pay top dollar for last-minute flights.

United Airlines, which primarily flies out of Newark Liberty International Airport — across the Hudson River in New Jersey — is the region’s largest carrier, flying 27.4 million passengers in the 12 months ending in March.

Delta is now a close second, with 23 million passengers annually in New York. JetBlue follows with 14.6 million and then comes American Airlines with 13.9 million.

“Not only is New York the largest single U.S. air travel market, but and is also the largest premium business airline market in the country,” said Henry Harteveldt, a travel industry analyst with Hudson Crossing. “Airlines that serve New York must bring their ‘A game’ to everything they do, including the airport experience.”

Delta’s strategy in New York is to capture business travelers with more pleasant experience — better planes, friendlier staff and more non-stop flights.

Having those passengers arrive and depart from a rundown terminal didn’t fit with that image.

Demolition crews had already started work Friday on Delta’s old Terminal 3. It was originally called Pan Am’s Worldport, a futuristic concrete structure with a roof resembling a flying saucer. The building helped usher in the modern jet age with Pan Am’s fleet of Boeing 707 Clippers departing there for all parts of the world.

When The Beatles first arrived in the U.S. in February 1964, they came through Worldport. And when the first 747 to carry passengers departed for London in 1970, it left from the iconic terminal.

But in the decades since, the terminal fell into disarray. Pam Am struggled financially and never updated the facility. Delta ended up with the terminal when it purchased many of its Pan Am’s remaining assets out of bankruptcy in the early 1990s.

But the building wasn’t designed for connecting passengers from one flight to another let alone post-9/11 security. Asbestos abatement made any renovations costly.

Last year, travel guide Frommer’s named it the worst airport terminal in America “and probably in the Western world.”

“There’s a sense that the cleaning crew gave up in despair a while ago,” Frommers wrote.

In its final months, the terminal was known for its leaking roof. Ugly white tarps were hung from the ceiling by steel cables. At the center of each tarp a clear garden hose drained water away as passengers below stood in line, waiting to check their luggage. Some days it seemed like only the pigeons — and there were plenty of them — enjoyed flying from the terminal.

The new terminal is up against some impressive competition.

American already has a sleek, airy, $1.3 billion terminal at JFK. JetBlue’s $800 million terminal opened in 2008 with boutique restaurants that had passengers almost wishing for a flight delay.

United isn’t sitting by quietly either. The airline announced Friday morning that it was “the only U.S. carrier” offering fully flat beds on all long-haul international flights from the New York area.

Delta has already improved its LaGuardia terminal, spending $160 million on renovations. It also brought in OTG Management to set up upscale dinning including a French brasserie, a custom hamburger outlet and a restaurant featuring fancy thin-crust pizzas. Fliers can even order food from iPads and have it delivered to them at their gate.

The airline is also spending heavily to show off its brand throughout the city. It is the official airline of the Yankees, Mets, Knicks and Rangers and has large sponsorship deals with Radio City Music Hall and Madison Square Garden.

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Scott Mayerowitz can be reached at http://twitter.com/GlobeTrotScott.