Special Commentaries:

Why Delta Will Come Back

     When Delta Air Lines first started operating out of Monroe, La. few could imagine what would become a colossus in the air transportation business.
     Maybe the largest employer in Atlanta outside of government and Coca Cola, Delta Air Lines has a proud legacy and, in this writer’s opinion, a promising future.
     Why? The good guys always win!
     Having managed airports ranging in size from Springfield-Branson to Dallas/Ft Worth International and Boston-Logan, I can speak first-hand as to the commitment to do the right thing by Delta’s senior management.
     As a young (23) airport manager at SGF, Delta’s VP of Properties, Rex Mc Lelland, became a friend and mentor.
     He continued in that role when I moved on to DFW and, at the next stop, BOS, he introduced me to Maurice Worth and CEO Dave Garrett.
     Whenever I needed help from the airlines, Delta was always there whether it was an airplane for a disaster drill or a helping hand to shovel snow from the sidewalks.

     That legacy has carried forward to today when Delta Chairman and CEO Gerry Grinstein, just months after 9/11, stepped up to the plate and recommitted to building Terminal A at BOS.
     You see, the folks at Delta are good people. That’s the foundation of any long-term successful management team.
     They are not just transportation experts, they are “people” people!
     Very, very early in my career I spent a short stint at Delta legacy carrier, Northeast Airlines.
     Northeast was in such dire financial straits it was my job to count the liquor sales money from the previous day’s flights to determine how much fuel we could afford for the morning flights as we were on a “cash only” basis with the BOS fuel suppliers.
     Delta acquired Northeast and later Western where shareholder value and job security was vastly improved. Delta employees even bought a B-767 for their employer as a gesture of loyalty and appreciation.
     These are very tough times to be in the airline business.
     The airports make money as do the rental car, food and beverage concessions, the parking lots, airport hotels and even the shoe shine folks.
     Everyone seems to be making money as a result of the increased traffic except the folks that cause the business to occur…the airlines.
     At BOS, Delta has the largest capital investment and probably has more current and retired employees in the area than any other airline.
     In spite of their financials, the increased cost of fuel and the one-year post 9/11 drought, Delta maintained their commitment to BOS and pressed onward.
     Delta kept its word!
     It made no excuses.
     It has reinvented itself and continues to do so.
     Lenders and investors alike, seeing nothing but a sea of red ink for the immediate future, came to Delta’s aid, albeit not without a heavy price.
     But, still, in spite of the LCC competition and instability of the fuel supply/cost, they advanced cash to Delta.
     Partly, as bankers, they had their loans collateralized, but also in part because of the history of Delta and its management.
     Like George Washington, they never have told a lie.
     Miscalculations, underestimating, pleading for wage and productivity concessions, but never an intentional lie or even a fib.

Years ago I worked with Delta CEO Gerry Grinstein on President Nixon’s Aviation Advisory Commission.
     He and then USAirways (Allegheny Airlines) CEO Les Barnes represented the interests of the airline industry.
     Honorable men, both.
     They had the health and welfare of the entire industry on their collective agenda.
     They just weren’t concerned with how the decisions of the Commission would impact their respective employers.
     Neither could have ever imagined what the U.S. airline industry would face in the 21st Century.
     And so, as Delta and other legacy carriers continue to face the unique and demanding challenges of this new environment, my bets are placed on Delta making it to the finish line.
     Mr. Grinstein, a tough and grizzled veteran, assisted by a cadre of young, bright and energetic minds, has kept the big ship afloat and is making the tough yet painful decisions to survive and ultimately flourish.
     You see, it is not just the collection of MBA’s and financial wizardry or even voodoo magic.
     It’s the people, the honesty, integrity and commitment.
     Delta will survive, maybe a lot leaner and probably with a fleet mix vastly different from what we see today.
     Delta will make it the old fashioned way…with good people and, as always, with honesty and integrity and hard work…they will earn it!
(Frederick C. Ford, A.A.E.)