Delta plans IBM outsourcing deal

Struggling airline Delta has asked a US bankruptcy court for permission to outsource its IT support and maintenance to IBM as part of plans to cut costs and reduce headcount.

Delta's internal IT department, Delta Technology, currently employs 1,800 staff who handle the airline's IT infrastructure and reservation systems.

A Delta spokeswoman told Reuters all staff affected by the outsourcing will be offered the chance to transfer across to IBM.

The airline also had to get permission earlier this year from the bankruptcy court for an employee incentive scheme to try and retain staff in the face of high attrition rates in the IT department.

The cash-strapped airline has been in Chapter 11 bankruptcy protection since last year and has just posted a loss of $2.2bn against a loss of $382m for the same period a year ago on the back of restructuring costs and a $2.1bn agreement with its pilots.

Delta is aiming to cut 2,000 from its 9,000 headcount as part of plans to put the airline back in the black, and the company expects to be able to exit Chapter 11 bankruptcy protection by the middle of next year.