Delta chief: Success ahead
Grinstein says trials remain after dodging bankruptcy bullet.
By RUSSELL <mailto:rgrantham@ajc.com> GRANTHAM The Atlanta Journal-Constitution Published on: 11/15/04
Gerald Grinstein emerged from Delta Air Lines' brush with bankruptcy predicting more challenges but also brighter days.
"As [Winston] Churchill said, there's nothing more exhilarating in life than to be shot at and missed," Grinstein told an Atlanta business group Monday.
"We're going to go through some more of a difficult period, but we are still dodging those bullets."
It was his first public appearance since Delta labored almost around the clock in recent weeks with its pilots union and creditors to cobble together a rescue package.
Last week, Delta got the pilots' final sign-off on $1 billion in concessions that were a key condition for other debt exchange and financing deals to inject up to $1 billion in new financing.
Speaking to about 200 members of the Rotary Club of Atlanta, Grinstein was noticebly more chipper than in previous months, when he oversaw protracted pilot concession talks, the announcement of up to 6,900 job cuts, and preparations for a possible Chapter 11 filing. The ailing airline has suffered more than $6 billion in losses since early 2001.
After his speech, Grinstein said he welcomes declining fuel prices - airlines' second-biggest expense. He also discounted some industry analysts'
comments that Delta's turnaround efforts may have only postponed a bankruptcy filing until next year.
"I think our strength is going to grow, and I think there are going to be enough changes in the industry so that we can increase our revenue," he said. "We're talking about a terrific business opportunity."
He predicted customers will see dramatic changes as Delta overhauls flight schedules, updates aircraft interiors and tries to boost service and efficiency.
"The Delta you see eight or 10 months from now will be quite different," he said.
He also said Delta may re-examine prohibitions against "waivers and favors"
that allowed its ticket agents and other employees to overlook fees or fare restrictions to address customer complaints.
"I think we have to empower our people," he said. "I think it won't be too long before we're instituting a policy where they can make decisions in the field."
