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Airlines Shuffle in Response to Rising Costs

By Linda Tancs

It’s been no secret that the airlines are feeling the pain of rising fuel costs.  Now, in a move attributed to those costs, Delta has announced a buy-out package for a whopping 30,000 employees.  U.S. carriers aren’t the only ones reeling from expenses, however.  Alitalia has a deal in the works to combine with Air France-KLM.  The billion dollar deal is being hailed by Alitalia’s board as a means to achieve higher critical mass and create synergies that cannot be otherwise accomplished through traditional alliances, particularly in this cyclical downturn worsened by rising fuel costs.  Of course, tour and cruise operators have likewise responded to fuel costs by raising or implementing surcharges on customers.  And, as any visit to the gas pump shows, the end is nowhere in sight.

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