General Lee
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Delta Board to Ponder Turnaround Proposal
Monday August 16, 5:52 pm ET
By Harry R. Weber, AP Business Writer Delta Board to Ponder Management's Proposed Turnaround Plan to Keep Carrier From Bankruptcy
ATLANTA (AP) -- Leaders of Delta Air Lines Inc. will brief board members Wednesday on the company's closely guarded turnaround plan that it hopes will keep the ailing carrier from bankruptcy.
The board will review the plan and make recommendations and decisions on certain initiatives, which it will roll out as appropriate, spokesman John Kennedy said. He would not elaborate on what initiatives are under consideration. In a closed-door meeting last month with employees, CEO Gerald Grinstein said the Atlanta-based carrier's restructuring plan may include a simpler fare structure or a loyalty program and higher performance standards and better training for employees.
Grinstein told employees that more will be required of them, measured in cost cuts and increased productivity, if the airline is to survive, according to an outline of his speech provided to The Associated Press.
In other areas, Grinstein said Delta plans to seek new markets, domestically and internationally, and new customers either alone or in a partnership. In addition, the airline will look to leverage assets and to deploy them in more profitable ways, he said.
Part of that mix would involve a new focus on long-haul routes, where revenues are typically higher because of premium offerings, and abandoning some shorter routes, The Wall Street Journal reported Monday, citing people familiar with Grinstein's discussions.
Delta, the nation's third largest carrier, is seeking $1 billion in concessions from its pilots as part of its effort to avoid bankruptcy. The pilots have offered up to $705 million in cuts.
Some analysts believe Delta's turnaround plan could include other drastic changes.
In a research note Monday, Ray Neidl, an analyst with Blaylock & Partners in New York, discussed the speculation that Delta may abandon money-losing leisure routes and smaller hubs, like Salt Lake City, and concentrate operations on its large hubs, longer distance business markets and international routes where it may be able to maintain a revenue premium.
Kennedy declined to comment on the reports. Delta shares rose 12 cents to close at $3.53 Monday on the New York Stock Exchange.
Where does Ray Neidl come up with his facts? Salt Lake City is a premium hub because many of the routes from there are only flown by Delta or maybe one other airline. That means very few LCCs---to Montana for example. I can see DFW going away, but I don't know about Salt Lake City. He did say it was speculation, and so far that all we have to go with. Even the Wall St. Journal article lacked direct quotes from Grinstein, just quotes from people who said they heard him say stuff..... Sounds more like STAR Magazine....
Bye Bye--General Lee
Monday August 16, 5:52 pm ET
By Harry R. Weber, AP Business Writer Delta Board to Ponder Management's Proposed Turnaround Plan to Keep Carrier From Bankruptcy
ATLANTA (AP) -- Leaders of Delta Air Lines Inc. will brief board members Wednesday on the company's closely guarded turnaround plan that it hopes will keep the ailing carrier from bankruptcy.
The board will review the plan and make recommendations and decisions on certain initiatives, which it will roll out as appropriate, spokesman John Kennedy said. He would not elaborate on what initiatives are under consideration. In a closed-door meeting last month with employees, CEO Gerald Grinstein said the Atlanta-based carrier's restructuring plan may include a simpler fare structure or a loyalty program and higher performance standards and better training for employees.
Grinstein told employees that more will be required of them, measured in cost cuts and increased productivity, if the airline is to survive, according to an outline of his speech provided to The Associated Press.
In other areas, Grinstein said Delta plans to seek new markets, domestically and internationally, and new customers either alone or in a partnership. In addition, the airline will look to leverage assets and to deploy them in more profitable ways, he said.
Part of that mix would involve a new focus on long-haul routes, where revenues are typically higher because of premium offerings, and abandoning some shorter routes, The Wall Street Journal reported Monday, citing people familiar with Grinstein's discussions.
Delta, the nation's third largest carrier, is seeking $1 billion in concessions from its pilots as part of its effort to avoid bankruptcy. The pilots have offered up to $705 million in cuts.
Some analysts believe Delta's turnaround plan could include other drastic changes.
In a research note Monday, Ray Neidl, an analyst with Blaylock & Partners in New York, discussed the speculation that Delta may abandon money-losing leisure routes and smaller hubs, like Salt Lake City, and concentrate operations on its large hubs, longer distance business markets and international routes where it may be able to maintain a revenue premium.
Kennedy declined to comment on the reports. Delta shares rose 12 cents to close at $3.53 Monday on the New York Stock Exchange.
Where does Ray Neidl come up with his facts? Salt Lake City is a premium hub because many of the routes from there are only flown by Delta or maybe one other airline. That means very few LCCs---to Montana for example. I can see DFW going away, but I don't know about Salt Lake City. He did say it was speculation, and so far that all we have to go with. Even the Wall St. Journal article lacked direct quotes from Grinstein, just quotes from people who said they heard him say stuff..... Sounds more like STAR Magazine....
Bye Bye--General Lee
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