DETROIT (WWJ) – More than 700 Delta workers’ jobs at Detroit Metro Airport could be on the chopping block. They could be laid off in April.

WWJ and Fox 2 Business Editor Murray Feldman says the workers might be hired by the sub-contractors.

“Of course nobody knows what kind of pay or benefits the new companies will be offering, it may not be what the former companies provided. Delta says if they can help these people get jobs here they will, if they can help them get jobs other places they will do that. The change is going to take place on April the fifteenth,” said Feldman.

Feldman says that Delta is being very cautious about what they are calling this, they don’t want to call it an outright layoff, in fact, he says, Delta addresses term specifically and denies that this is a layoff.

He notes the people affected are “local people, work for companies that Delta contracts with, these are people who provide service jobs to maintain the cabin and the ramp agents, administrative agents. Airport sources say that Delta has chosen new companies to perform these services and the new companies are going to need people so it’s possible that people who are going to be laid-off could be hired by the new companies.”

Feldman says Delta could potentially transfer crews to other Delta companies.

Delta Airlines has jobbed out maintenance and service workers at Detroit Metropolitan Wayne County Airport with layoff notices coming in April after new contractors take control of the support positions.

The job cuts will affect 741 workers but just how many will remain out of work is unclear. Morgan Durrant, a spokesman for Delta Airlines, said the employees will be able to re-apply for their jobs.

Our expectation is that as this transition is happening, the new providers will look to the old workforce, Durrant said. We expect the incoming vendors to look to the existing workforce and utilize that institutional knowledge and skill.

DAL Global Services, an airline subsidiary, will be making the cuts, according to a document filed by the company with Michigans Department of Career Development.

The layoffs will come on or around April 15, the company said. Jobs being cut include 141 cabin service agents, 380 ramp agents, 77 cabin provision agents and 50 ramp supervisors. Delta is switching from DAL Global Services to two new contractors: Prospect, which will be responsible for cabin cleaning, and Menzies Aviation, which will handle baggage and marshalling out on the tarmac. The changes only affect regional flights where planes seat between 50 and 76 passengers, said Morgan Durrant, a spokesman for Delta Airlines.

Durrant said the switch to new contractors is a standard move for the business when it re-evaluates its needs. He declined to elaborate on the reason for the switch.

According to the document filed with the state on Wednesday, the outgoing provider could also provide assistance for placing laid-off employees in other jobs.

While DAL Global Services will work with its employees in placing them in available positions in other cities, employees may not necessarily receive the city which is their first choice, the company said in the letter to the state. Those affected employees who are not willing to transfer will be furloughed.

Durrant said the layoffs only affect staffers at Detroit Metro Airport.

Last year 32.4 million people flew through the airport, said spokesman Michael Conway. He said 18,100 employees work at the airport.

As for the layoffs, he said he isnt expecting many jobs to be eliminated.

If theres any net loss in the jobs at the airport, they would be minimal, said Conway. Theyre still going to need the same services done.

Delta layoffs

The jobs in jeopardy:
■Cabin lavatory agents: 58
■Cabin service agents: 141
■Cabin provision agents: 77
■Cabin service supervisors: 7
■Cabin service duty managers: 2
■Ramp agents: 380
■Ramp certified trainer: 2
■Ramp supervisors: 50
■Ramp duty managers: 12
■Ramp station managers: 2
■Administrative assistants: 9
■Administrative duty manager: 1

SOCHI, Russia – Canada needs to pick up the pace in the second half to reach its goals at the Sochi Olympics. Canada had 11 medals at halftime in 2006 in Turin, …

A student supervisor at Columbus State University has been arrested on identity theft charges.

CSU police say 36-year-old Angela Secrest exploited seven workers at the school’s police force by creating fake credit card accounts.

Delta Airlines has jobbed out maintenance and service workers at Detroit Metropolitan Wayne County Airport with layoff notices coming in April after new contractors take control of the support positions.

The job cuts will affect 741 workers but just how many will remain out of work is unclear. Morgan Durrant, a spokesman for Delta Airlines, said the employees will be able to re-apply for their jobs.

Our expectation is that as this transition is happening, the new providers will look to the old workforce, Durrant said. We expect the incoming vendors to look to the existing workforce and utilize that institutional knowledge and skill.

DAL Global Services, an airline subsidiary, will be making the cuts, according to a document filed by the company with Michigans Department of Career Development.

The layoffs will come on or around April 15, the company said. Jobs being cut include 141 cabin service agents, 380 ramp agents, 77 cabin provision agents and 50 ramp supervisors. Delta is switching from DAL Global Services to two new contractors: Prospect, which will be responsible for cabin cleaning, and Menzies Aviation, which will handle baggage and marshalling out on the tarmac. The changes only affect regional flights where planes seat between 50 and 76 passengers, said Morgan Durrant, a spokesman for Delta Airlines.

Durrant said the switch to new contractors is a standard move for the business when it re-evaluates its needs. He declined to elaborate on the reason for the switch.

According to the document filed with the state on Wednesday, the outgoing provider could also provide assistance for placing laid-off employees in other jobs.

While DAL Global Services will work with its employees in placing them in available positions in other cities, employees may not necessarily receive the city which is their first choice, the company said in the letter to the state. Those affected employees who are not willing to transfer will be furloughed.

Durrant said the layoffs only affect staffers at Detroit Metro Airport.

Last year 32.4 million people flew through the airport, said spokesman Michael Conway. He said 18,100 employees work at the airport.

As for the layoffs, he said he isnt expecting many jobs to be eliminated.

If theres any net loss in the jobs at the airport, they would be minimal, said Conway. Theyre still going to need the same services done.

Delta layoffs

The jobs in jeopardy:
■Cabin lavatory agents: 58
■Cabin service agents: 141
■Cabin provision agents: 77
■Cabin service supervisors: 7
■Cabin service duty managers: 2
■Ramp agents: 380
■Ramp certified trainer: 2
■Ramp supervisors: 50
■Ramp duty managers: 12
■Ramp station managers: 2
■Administrative assistants: 9
■Administrative duty manager: 1

The United States is projecting a deficit of about $600 billion. In the U.K., their government intends to run a deficit until 2018-19. Meanwhile, in Canada, the …

For Immediate Release
 
Chicago, IL – February 12, 2014 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include the Southwest Airlines Co. (LUV–Free Report), Delta Airlines Inc. (DAL–Free Report), United Continental Holdings Inc. (UAL–Free Report), American Airlines Group Inc. (AAL–Free Report) and Airgas, Inc. (ARG–Free Report).
 
Today, Zacks is promoting its ”Buy” stock recommendations. Get #1Stock of the Day pick for free.

Here are highlights from Tuesday’s Analyst Blog:

Southwest Targets Rivals’ Soft Markets

Leading U.S. passenger carrier Southwest Airlines Co. (LUV–Free Report) is eyeing those markets in which rival carriers have downsized their operations. Southwest wants to tap opportunities in these markets by leveraging from its recent slot pair wins in New York and Washington D.C.  

The Dallas-based carrier is targeting Memphis, Tennessee, where rival Delta Airlines Inc. (DAL–Free Report) trimmed operations last year. Also on Southwest’s list is the Midwestern city of Cleveland which United Continental Holdings Inc. (UAL–Free Report) no longer wants as its hub. Despite being small markets, Southwest is encouraged by the growth opportunities that these offer. We expect Southwest – known for its low fares – will get a strong foothold in these markets with competitive ticket prices.

Such a practice is not new for Southwest, as the carrier has previously benefited by scaling its operations in the city of Nashville in the 1990s and in St Louis, Missouri, where the erstwhile American Airlines had downsized its service.

The last few months have been really fruitful for Southwest. In Dec 2013, Southwest acquired 22 take-off and landing slots at New York’s La Guardia airport (:LGA) and recently won bids to purchase 27 take-off and landing slots at Reagan National Airport (DCA) in Washington. The slot purchase is part of a mega merger deal between American Airlines and U.S. Airways Group that led to the formation of American Airlines Group Inc. (AAL–Free Report).

The company has decided to add flights to Nashville, Texas, Chicago and Ohio from LGA and expects to expand its operations to large and mid-sized cities from DCA. Apart from slot purchases, the company delivered a stellar fourth quarter of 2013, beating the Zacks Consensus Estimate on both lines.

These positives were, supported by the company’s announcement that it will operate non-stop flights from Dallas starting Oct 13, when the Wright Amendment act is lifted. Additionally, the major passenger carrier has also decided to fly beyond national boundaries to three destinations in the Caribbean Island from Jul 2014. It is thus an encouraging time for both Southwest investors and passengers.  

Southwest sports a Zacks Rank #1 (Strong Buy).

Airgas Down to Underperform

On Feb 7, we downgraded our recommendation from Neutral to Underperform on Airgas, Inc. (ARG–Free Report) as its estimates have undergone negative revisions following the third-quarter earnings results and trimmed fiscal 2014 guidance. Helium supply constraints, larger-than-expected R-22 impacts and uncertainty in the construction sector also remain headwinds for this supplier of industrial, medical and specialty gases, and hardgoods.

Why Downgraded?

Airgas, Inc. posted adjusted earnings of $1.18 a share in third-quarter fiscal 2014 (ended Dec 31, 2013), up 13% year over year. For fiscal 2014, Airgas lowered its earnings outlook to $4.75–$4.80 from its previous band of $4.85–$5.00. The reduced outlook reflects choppy end-market trends, weaker-than-expected activity in January 2014 due to unfavorable weather and higher healthcare and e-Business/telesales investments and increased headwind in refrigerants.

Airgas also anticipates that it will fall short of its fiscal 2016 sales target of $6.5 billion, given the sluggish industrial growth as well as slower acquisition activity to date. The company, however, remains optimistic about achieving the lower-end of its margin goal of 15%.

Among other challenges, the global industrial gas industry continues to face helium supply constraints. During fiscal 2013, Airgas helium suppliers continued to fall short of their volume commitments and the company expects some level of supply chain disruption during fiscal 2014 as well.

In March, the U.S. Environmental Protection Agency (:EPA) unexpectedly issued a ruling allowing for increased R22 refrigerant production in 2013 contrary to industry and company expectations of further declines. Airgas expects an estimated 17 cents per share (up from the prior expectation of 15 cents per share) year-over-year negative impact in fiscal 2014 related to R-22 pricing and volume following the EPA’s ruling.

Airgas noted that in construction, new projects have been slower to gain traction, and the extremely cold weather prevents welding activity on general daily construction projects that make up a good portion of its construction segment.

Economic indicators are also giving mixed signals. Private non-residential construction spending has declined, with the most recent reading in Nov 2013 being 7% lower than last year. Overall, the construction sector will continue to be a drag on Airgas’ results.

Airgas retains a short-term Zacks Rank #4 (Sell).

Today, Zacks is promoting its ”Buy” stock recommendations. Get #1Stock of the Day pick for free.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks “Profit from the Pros” e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today.

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros.  In short, it’s your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros.
 
Get the full Report on LUV – FREE
Get the full Report on DAL – FREE
Get the full Report on UAL – FREE
Get the full Report on AAL – FREE
Get the full Report on ARG – FREE
 
Follow us on Twitter: http://twitter.com/zacksresearch

Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
 
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
http://www.zacks.com
 
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The SP 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

ATLANTA – Delta Airlines officials say more than 500 flights in Atlanta have been cancelled because of a winter storm that’s approaching the region.

Delta spokesman Morgan Durrant said Monday night that 313 mainline flights and 196 Delta connection flights at the Hartsfield-Jackson Atlanta International Airport have already been cancelled for Tuesday.

Durrant says the airline will revise the number Tuesday afternoon and will give updated cancellation numbers for Wednesday.

Delta is offering customers expecting to travel through several Southeastern cities between Tuesday and Thursday the opportunity to make free one-time changes to their itineraries, whether or not their flights have been cancelled.

The waiver applies to travellers passing through Atlanta, North and South Carolina, Huntsville, Ala. and Norfolk, Va.