Former Delta exec gets free flights

AMERICAN airline Delta is to give its former finance chief Michele Burns free air travel for life in exchange for consultancy services for five years.

However, the airline is also warning it will go into bankruptcy unless it can carve extra concessions from its pilots. The agreement with Burns, detailed in a filing with the Securities and Exchange Commission, says she will advise the airline until 2009 on issues related to her time at the airline.

Her spouse or partner and any children also get the free airfare until the time they turn 23 if they remain full-time students. Burns left Delta in May to become chief financial-officer at bankrupt energy supplier Mirant.

The Atlanta-based carrier says that lower yields and higher fuel prices have eaten into cash flow and it has turned to cash reserves to pay certain expenses. Reserves are expected to be eroded throughout the rest of the year.

At the end of the second quarter, Delta had $2bn (£1.1m) in cash, down from $2.7bn at the end last year.

Delta is looking for deep cuts. 'We are intensively engaged in an effort to implement new strategic business initiatives in order to effect a successful out-of-court restructuring, but there can be no assurance this effort will succeed,' it said.