From Deseret News archives:
Leading Delta No autopilot for airline's CEO in his first year at the helm
- Page:
- < Previous
- 1
- 2
In a document called "Rules of the Road," one of the first papers Anderson distributed at Delta after he arrived, Anderson writes: "We run a meritocracy. ... No 'new jobs' for nonperformers."
He also instructs: "Always be collegial, even in tough conversations."
One of those tough conversations came when Delta moved to terminate Delta Connection contracts, including with Mesa Air Group's Freedom Airlines. Mesa sued Delta, and a judge ruled the airline must resume the flights pending a trial.
Anderson will also face scrutiny from others watching to see how the airline lives up to its promise to not cut any frontline workers as a result of the merger or eliminate any of the combined carrier hubs. Delta is already shrinking its hub in Cincinnati by 22 percent this fall, compared with a year earlier, among other cuts.
"I think the jury's still out on what kind of leader he'll be for Delta," said Cathy Cone, head of a group of retired Delta employees. "It's going to be a real challenge to merge the two companies."
"We want to get the merger done and get it successfully integrated," Anderson said. But that's not his only major challenge. "The issue that we face perennially in this business is this unbelievable cyclicality," Anderson said.
Historically, the health of the airline industry tends to mirror the economy: When the economy is weak, the airline industry suffers, and when the economy is strong the industry benefits.
In the second quarter of this year, Delta lost $1 billion, after recording $1.2 billion in special charges for write-downs, severance and closing some facilities at airports. Excluding the special items, Delta reported a $137 million profit. A year earlier, Delta had a $274 million profit, excluding special items.
Anderson said Delta must grow revenues 8 to 12 percent a year while improving cost efficiency by 5 percent a year even when it's cutting back flight capacity. Delta can accomplish that, he said, through the Northwest acquisition and through growth of other businesses such as cargo and maintenance.
He hopes Delta will be consistently profitable by 2010.
- Page:
- < Previous
- 1
- 2
Recent comments
10 million pages of documentation? You would have to read 500 pages...
Anonymous | Sept. 9, 2008 at 11:15 a.m.
Two average airlines at best come together to form a giant. Any bets?
Tim | Sept. 7, 2008 at 2:59 p.m.
No transportion system pays for itself. All are subsidized in one...
Zadruga Guy | Sept. 7, 2008 at 2:47 p.m.
- No. 11 Tennessee holds off ETSU 8:21 p.m.
- Illinois erases Clemson lead 8:20 p.m.
- Boykins comes up big for Wizards 8:18 p.m.
- Hawks hit 15-year high in points 8:16 p.m.
- Grammy nominees: Swift, Beyonce 8:15 p.m.
- Connecticut routs Boston U. 92-64 8:02 p.m.
- Savard scores 200th goal in win 7:53 p.m.
- LeBron, Shaq help Cavs down Suns 7:50 p.m.
- Utes get back on field for bowl prep 7:49 p.m.
- Sedin twins spark Canucks 7:38 p.m.
- Why is Y. ignoring spew of hatred?
- Unbeaten BYU takes trip to Logan
- Mitchell compared to Ervil LeBaron
- BCS just keeps dirty laundry on spin
- Teen girl killed in Kaysville crash
- Utahns growing tired of Bennett
- 2 citations issued at Y.-U. game
- Orem pair getting a rep for crime
- MWC awaits bowl destinations
- Simple candies for the holidays
- Hall mouths off about hate of Utah
913 - Cougars beat Utes in overtime
483 - Hall reprimanded by MWC
404 - Max Hall issues apology
391 - Hall's pain reflects self-betrayal
358 - Utes won't respond to Hall
277 - BYU says Hall incident resolved
244 - Why is Y. ignoring spew of hatred?
224 - 2 citations issued at Y.-U. game
176 - Religion in politics is tiresome
154
LDS Church publisher Deseret Book has some specials for the holidays.
First, a big thank you to all who posted questions here for me to ask...
He is evil
The commentator at 4:34 should show more civility. I am a staunch opponent...
Whoa... Let the couples decide? What a concept!
It is definitely possible to go 14-0 by many teams. First of all now days...
To: Re:Bingham 10:02 Great! I can't wait to watch Clifford & Sommerville...
I've watched miles closely the last couple years, especially last year when...
Why would you want a regular coach that would be fired after one losing...
All I've heard since moving to Utah is how the morals, standards, and values...
I've always wondered why about 97% of people who post comments on articles...
D new carries the most weight, because it comes solely, from coaches. Trib...


