Meanwhile, the statement said, "DFW is already in dialogue with a number of other air carriers who have expressed some interest in expanding service at DFW or initiating new service."

"With the most capacity of any airport in the world, DFW is fortunate to have the size, competitive cost structure and local market strength to 'backfill' many routes reduced by Delta," Jeff Fegan, CEO of the Dallas airport, said in the statement.

Dallas does not expect to make staff reductions at this time. No local tax dollars support the airport, so DFW said there will be no financial impact on its owner cities. However, the statement said, DFW estimates a $20 million revenue loss in fiscal 2005 over original projections, based on Delta's restructuring and taking into account American Airlines' recent announcement of 70 new daily departures.

Belt tightening

Grinstein said Delta is in about 110 percent debt "given the rapid deterioration of this company's financial condition, due to low yields, uncompetitive labor costs, high fuel prices and the debt burden.

"All of those pieces put together, including possible operational disruptions, (mean that) bankruptcy is still a possibility," Grinstein said.

The changes announced Wednesday were designed to allow Delta to meet its goal of saving $5 billion by 2006. The company has saved $2.3 billion since 2002, Grinstein said.

In addition to flight redeployments and the Dallas de-hubbing, Grinstein said Delta will reduce administrative overhead costs by 15 percent, increase employee responsibility for health-care costs and cut employee pay companywide. The pay cuts will be announced later this month and implemented "at a later date," according to Delta.

Plus, Delta is still negotiating with its pilots to reduce costs. The airline wants $1 billion in concessions from its pilots. Pilots had previously offered $705 million.

Thiel said Wednesday that negotiations are continuing in "subject matter subgroups."

"We're talking big changes in crew scheduling and retirement. Some of the issues are very complex. They're taking a lot of time and effort to work out, but there is progress being made," Thiel said. "I think we're all aware that there's a time line to these things. It'll get done. We're willing to step up and help out, but pilots are just part of the solution."

The bigger issue, according to Thiel, is Delta's debt renegotiation effort. In the past three years, Delta has reportedly lost more than $5 billion. It has cut 16,000 jobs, and Grinstein said Wednesday that more job reductions are possible.

"Given the severity of our financial situation, there are no guarantees for success and there is no time to waste, but with this plan and the commitment of Delta people . . . I am realistically hopeful about Delta's future," Grinstein said.

Delta stock fell 44 cents per share, or almost 10 percent, to close at $4.04 Wednesday on the New York Stock Exchange.

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E-mail: jnii@desnews.com