From the LCA meeting in ATL (via the DALPA Web site). This was basically the same briefing heard at the Delta Golden Wings presentation at 103 West on 2/11/04.
Topic Grinstein's comments at ATL LCA meeting (1 of 7)
Conf Hangar Talk
Date Thursday, February 12, 2004 0830 AM
Kolshack spoke for 30 minutes and 20 minutes for Q&A
1. Mostly about operations and safety
2. Counterpart at Jet Blue told him during ATA meeting top paying captain earned 285K last year and FO earned 150K
3. May include profit sharing/options as part of the Pilot concession package
Grinstein spoke for about 30 minutes and then Q&A for about 30 minutes
1. Strategic Review
a. Song expansion on hold, not being marketed well, doesn't understand ads
b. Advertising s**ks, time for changes
c. Too many VP's, some may be cut
d. Will use Delta people to conduct review, no outside consultants
e. New A/C interiors will go ahead
2. F/A uniform change was made because F/A's hate current uniform and trying to increase morale, cost is 3 million over 3 years.
3. No choice but to defer/cancel/renegotiate the 777 order, will not take on any more debt.
4. 20.8 billion of debt, 8 billion is aircraft leases
5. Delta exposed to LCC [low cost carriers] more than United/American due to East coast presence.
6. Trust issue
a. Would not say what went on during board meeting two years ago to discuss Bonus/Serp, BUT there were board members who "knew" it was a terrible idea and was doomed to failure, but majority rules
b. This kind of thing will not happen again while he's the boss
c. New leadership will come from within the company, cited the book "From Good to Great", the best companies "grow" their own leaders.
d. Social contract between Employees/Mgmt began to breakdown with Ron Allen, wants to rebuild that contract
7. Negotiations
a. Airline will probably not avoid Chapter 11 without pilot concession of 30%
b. Never intended it to be negotiation but a "give-back" of 30%
c. Used analogy: Delta had a heart-attack and ALPA's fix is aspirin therapy
d. ALPA will not "grant" him access to the pilot group (via road shows w/spouses, etc.) while this process is going on
My take The guy APPEARS to be the real deal. However, that last item gave me pause for thought and caused quite a bit of noise around the room. I think he made it clear anything less than 30% won't work. He seems to understand that there is a huge trust issue. Got a standing ovation when he left, haven't seen that in a while.