Song Is A "mistake" Says Grinstein

[FWAAA]

Changes are on the way at Delta:

Delta eyes premium routes, service to survive-WSJ

Monday August 16, 12:28 am ET

NEW YORK, Aug 16 (Reuters) - The chief executive of Delta Air Lines Inc. (NYSEAL - News) may add more longer-haul routes, spend more on customer service and amenities and cede some U.S. market share in a bid to help ensure the No. 3 U.S. airline's survival, the Wall Street Journal said on Monday.

Counter to longtime industry conventional wisdom, Grinstein is suggesting that Delta abandon some U.S. routes into regional hubs, and expand routes and amenities for flights across the Atlantic, the United States and to Latin America, the paper said.

Grinstein has also criticized Song, Delta's low-fare airline-within-an-airline launched last year.

At recent meetings, he called Song and the former Delta Express "mistakes," joking that he would like to add "Swan" before Song's name, the newspaper said, citing unnamed people present at recent meetings.

Remainder of article here: http://biz.yahoo.com/rf/040816/airlines_de...strategy_1.html

Swan Song! This guy just might get it.

 

[luvn737s]

Why not replace the perjorative term "legacy" carrier (synonymous with dinosaur) with "premium" carrier.

 

[coolflyingfool]

It sounds like the transformation plan with have some real changes in it. I wish the best to all.

 

[flyhigh]

...unfortunately this is old information. As of late Jerry has come to believe Song has opportunity in the marketplace. Specifically, he said he didn't think we could run sub-brands, but has since found that to be untrue.

 

[JFK777]

What new international routes is Delta going to fly? They gave up two gems from LAX & JFK to Tokyo, now the Dallas visionaries at AA fly them. LHR is not available unless UA sells, if they did could DAL buy it?. I hope these new international cities are not the Caribean. DAL needs to take delivery of all the 777 it has on order, if that means selling more airplanes to get the 5 or 6 777 on order, then so be it.

 

[TheDog2004]

What a terrible article. He's quoting Grinstein from several months ago. Grinstein has made a complete flip-flop on his opinion of Song.

 

[luv2fly]

What a terrible article. He's quoting Grinstein from several months ago. Grinstein has made a complete flip-flop on his opinion of Song.

[post="169329"][/post]​

I have to agree Dog. This is old news.

 

[local 12 proud]

after untold million's spent on song, delta express, etc... the CEO now say's it was a mistake? DUH..........! these people with MBA's are in charge of an industry which has little latitude for error yet they make ultra $$$$$$$$$ and have the nerve to come to labor to bail thier ignorant a$$ out because they have no idea how to run a buissness. i hope the best for delta employees but fear you will be subjectedto the corporate raping as the rest!

 

[coolflyingfool]

I believe that the losses can't just be because of the pilots. DL needs to find out what is losing money for them and cut it out. If there are a couple of routes that are bleeding, cut the frequency or eliminate the route. Look at everything from top to bottom and start making some serious changes. I really haven'y notoced DL make any changes, yet they continue to lose money and say the pilots are respnsible. DL needs to get off of their rumps.

 

[flyhigh]

...local 12-

Read the posts just above your's. As they say, Jerry has reversed course on his initial statements.

Cool-

Delta has eliminated billions in costs. Unfortunately, two things are hurting us right now...pilots and fuel. Had the pilots capitulated earlier, we would be in good enough shape to renegotiate with vendors on other issues, negating the effect of fuel costs (to some degree). However, in a bid to raise cash (and take a bet), our last fuel hedges were sold earlier this year. The need for cash was high and the believe that fuel costs would lower was prevalant. The need for cash remains and fuel, as we know, has only increased.

 

[mrfish3726]

Wish you all the best of luck and hope your managment team does see some other vision as they did at AA. I don't know that it will keep the BIG D out BK with oil fixing to hit the $50 a barrel range by the end of SEPT. But, BK or not your company has much better chances of survival then they do at USAIR or UiTED.

 

[luv2fly]

...local 12-

Read the posts just above your's. As they say, Jerry has reversed course on his initial statements.

Cool-

Had the pilots capitulated earlier, we would be in good enough shape to renegotiate with vendors on other issues, negating the effect of fuel costs (to some degree). However, in a bid to raise cash (and take a bet), our last fuel hedges were sold earlier this year.

[post="169450"][/post]​

That is simply horse ####. You are now trying to blame the pilot group for DL's lack of ability to renegotiate vendor contracts. Please explain that to me. The only thing this management team has effectively demonstrated is its ability to single out one employee group as the source of its problems.
BTW.. good decision on selling the fuel hedging contracts. Sure glad we are paying market price now. Looks like you lost that bet. A few more sound decisions like that should help us expedite our trip to the courthouse steps.

 

[HPearlyretiree]

Still think Bong is a bad idea.

 

[LiveInAHotel]

Gee, what a shock !

 

[flyhigh]

Luv-

You're not serious are you? Is it really a surprise that vendors won't negotiate as long as our pilots are way overpaid? Think long and hard on this. Ever bought a house? They look at your credit and expenses. If they see you're paying a lot toward something then they are less likely to do business with you. In this case, as long as our pilots are way over market, they're betting that the best option for them is to collect as much now as possible before a bankruptcy. If we can move pilot costs to a more reasonable level, then they will look to move their rates down since they think the cost structure can be supported in the current revenue environment. This is the same thing that happened at AA. Do you read the news? If you think about it from a supplier's perspective it makes a lot of sense. It's actually kind of an odd game they play. They rack up as much as they can with a company as the larger your claim in a bankruptcy, the more voice you have. However, you're racking up a lot of unpaid bills. At that point you have a lot of small businesses dropping out of the game as they can't afford to extend that much credit. It becomes a form or Russian roulette for lack of a better example.

As for selling the hedging contracts...were you able to read the future or something? You should join the fuel dept. if so. Again, read what I said, need for cash was greater than the bet that fuel would continue to rise to this level. I know you're smarter than everyone else, but unless you're willing to help out by using that power you have to read the future, you shouldn't criticise those who don't have your power and ability. It must be a wonderful gift to have.