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Grinstein To Retire After DL Exits CH11  
User currently offlineDAL767400ER From Germany, joined Feb 2005, 5721 posts, RR: 46
Posted (7 years 6 months 1 week 3 days 16 hours ago) and read 3914 times:

http://yahoo.reuters.com/news/articl...31_N12350441&type=comktNews&rpc=44

Quote:
NEW YORK, Oct 12 (Reuters) - Delta Air Lines Inc. (DALRQ.PK: Quote, Profile, Research) Chief Executive Gerald Grinstein said on Thursday he plans to retire after the airline emerges from bankruptcy protection.

Atlanta-based Delta filed for Chapter 11 in September last year and expects to emerge from the bankruptcy protection in the first half of next year.

"It will be a little while after that," Grinstein said during an event in New York. "I think it is quits this time."


Seems like Whitehurst is up for a promotion sometime soon.

35 replies: All unread, showing first 25:
 
User currently offlineLaxintl From United States of America, joined May 2000, 24323 posts, RR: 47
Reply 1, posted (7 years 6 months 1 week 3 days 16 hours ago) and read 3908 times:

Grinstein was interviewed in last months Airline Business. States he wants to be gone by next summer. He did not really plan to stick around as long as has, except he fell into the position more via default and a sense of responsibility than anything. He'd like to make way for new chapter in Delta's life with new leadership as soon as possible.


From the desert to the sea, to all of Southern California
User currently offlineB777-700 From , joined Dec 1969, posts, RR:
Reply 2, posted (7 years 6 months 1 week 3 days 16 hours ago) and read 3888 times:

Saw this one coming a mile away. Gerry is the guy to get the company thru BK. Jim is the guy to get it into the future. He's a stand up guy, and Gerry will be leaving it in good hands.

User currently offlineBucky707 From United States of America, joined Aug 2000, 1028 posts, RR: 3
Reply 3, posted (7 years 6 months 1 week 3 days 15 hours ago) and read 3829 times:

Quoting B777-700 (Reply 2):
Jim is the guy to get it into the future. He's a stand up guy, and Gerry will be leaving it in good hands.

I agree. Whitehurst is a visionary who is looking five years down the road. Delta has had enough of management who is reacting to developments that are six months old.


User currently offlineSLCUT2777 From United States of America, joined Dec 2005, 3993 posts, RR: 11
Reply 4, posted (7 years 6 months 1 week 3 days 14 hours ago) and read 3789 times:

Quoting Laxintl (Reply 1):
Grinstein was interviewed in last months Airline Business. States he wants to be gone by next summer. He did not really plan to stick around as long as has, except he fell into the position more via default and a sense of responsibility than anything. He'd like to make way for new chapter in Delta's life with new leadership as soon as possible.

Gerald Grinstien really should have been put in as CEO back in the late 1980s after the merger with Western Airlines was completed. I think it is safe to say that he has surrounded himself with a couple of very capable lieutenants in Jim Whitehurst (Operations) and Ed Bastian (Finance), and have made some very painful moves.
I completely agree that Jim Whitehurst is the visionary that can look and see down the road rather than react or adhere to tradition. As Bucky707 pointed out above. Ronald Allen just adhered to tradition when it came to fleet acquisition and went with the MD-11 keeping with the Delta/Douoglas tradition even though it was a dying company for commercial aircraft by then. Being the second launch customer along with UA for the Boeing 777 would have been a much better choice. And Leo Mullin; well, the financial mess that emerged over the last 5 years is clearly his doing more than anyone's.

Quoting Laxintl (Reply 1):
Grinstein was interviewed in last months Airline Business. States he wants to be gone by next summer. He did not really plan to stick around as long as has, except he fell into the position more via default and a sense of responsibility than anything. He'd like to make way for new chapter in Delta's life with new leadership as soon as possible.

Gerry clearly wants to get back to the Puget Sound region where he built his career as a highly successful Seattle based corporate lawyer dealing primarily with the transportation sector. He has family and many friends back there, and I'm certain for a man of his age (75) Atlanta is as foreign if not more so than Los Angeles (where he lived while running Western Airlines) ever was or Fort Worth could ever have been (where he resided as CEO of Burlington Northern/Santa Fe Railroad). Hopefully all Delta frequent flyer's (myself included) will realize a debt of gratitude to a man who has essentially worked at times these last three years without remuneration or with minimal remuneration to save a company that has a "can do" spirit amongst its employees, and should remain amongst the corporate landscape of U.S. carriers for years to come.



DELTA Air Lines; The Only Way To Fly from Salt Lake City; Let the Western Heritage always be with Delta!
User currently offlinePositiverate From United States of America, joined May 2005, 1590 posts, RR: 8
Reply 5, posted (7 years 6 months 1 week 3 days 14 hours ago) and read 3783 times:

Quoting DAL767400ER (Thread starter):
Seems like Whitehurst is up for a promotion sometime soon.

I wouldn't count out Ed Bastian...

Delta's bankruptcy quarterback
CFO Bastian leads Chapter 11 case, could be CEO candidate

By RUSSELL GRANTHAM
The Atlanta Journal-Constitution
Published on: 10/02/06
As the oldest of nine children, Ed Bastian grew up being in charge of things. So it may be natural for him to want to run Delta Air Lines. Like many a politician, he protests he is not seeking higher office.

"I'm very engaged with my full-time job. I spend zero time thinking about any other job," Delta's chief financial officer said in a recent interview at the carrier's Atlanta headquarters.

But after being passed over twice for the CFO post, leaving Delta and then returning to get the top finance post just as the airline plunged into a bankruptcy reorganization, Bastian is now considered a contender to ascend to the ultimate job.

More here: http://www.ajc.com/business/content/...ies/2006/10/02/bizbastian1002.html


User currently offlineXflyer From United States of America, joined Oct 2006, 39 posts, RR: 0
Reply 6, posted (7 years 6 months 1 week 3 days 14 hours ago) and read 3722 times:

17 years on the Board of Delta and look where he took Delta.

User currently offlineIH8B6 From United States of America, joined Apr 2006, 203 posts, RR: 2
Reply 7, posted (7 years 6 months 1 week 3 days 14 hours ago) and read 3706 times:

So CEO will between Jim Whitehurst and Ed Bastain. These are both standup guys who are doing a great job. My concern is whoever doesn't get the job will be off to greener pastures.....


Over-moderation sucks
User currently offlinePositiverate From United States of America, joined May 2005, 1590 posts, RR: 8
Reply 8, posted (7 years 6 months 1 week 3 days 13 hours ago) and read 3676 times:

Quoting IH8B6 (Reply 7):
My concern is whoever doesn't get the job will be off to greener pastures.....

Kind of like what happened with Mullally at Boeing...


User currently offlineORD From United States of America, joined Jul 1999, 1378 posts, RR: 1
Reply 9, posted (7 years 6 months 1 week 3 days 13 hours ago) and read 3614 times:

Quoting SLCUT2777 (Reply 4):
Ronald Allen just adhered to tradition when it came to fleet acquisition and went with the MD-11 keeping with the Delta/Douoglas tradition even though it was a dying company for commercial aircraft by then. Being the second launch customer along with UA for the Boeing 777 would have been a much better choice.

I agree Delta should have bought 777s earlier than they did, but the MD-11 order was still important. Delta placed the MD-11 into service in 1990, five years before the 777 first went into service with United. Delta in the late 1980s/early 1990s was expanding the PDX hub to Asia and could not wait for the 777...they needed a long-range airplane right away.


User currently offlineCa2ohHP From United States of America, joined Sep 2005, 948 posts, RR: 1
Reply 10, posted (7 years 6 months 1 week 3 days 12 hours ago) and read 3608 times:

Quoting Xflyer (Reply 6):
17 years on the Board of Delta and look where he took Delta.

Care to elaborate?


User currently offlineFreedom747 From , joined Dec 1969, posts, RR:
Reply 11, posted (7 years 6 months 1 week 3 days 10 hours ago) and read 3516 times:

There is a new Delta in this world, and it's finally reached the 21st Century, even when I worked with them for 13 years, everything was held to "tradition" and even though that is a good thing at best....vision is where its at.

User currently offlineUSPIT10L From United States of America, joined Mar 2006, 3295 posts, RR: 7
Reply 12, posted (7 years 6 months 1 week 3 days 10 hours ago) and read 3482 times:

Quoting SLCUT2777 (Reply 4):
Gerald Grinstien really should have been put in as CEO back in the late 1980s after the merger with Western Airlines was completed. I think it is safe to say that he has surrounded himself with a couple of very capable lieutenants in Jim Whitehurst (Operations) and Ed Bastian (Finance), and have made some very painful moves.
I completely agree that Jim Whitehurst is the visionary that can look and see down the road rather than react or adhere to tradition. As Bucky707 pointed out above. Ronald Allen just adhered to tradition when it came to fleet acquisition and went with the MD-11 keeping with the Delta/Douoglas tradition even though it was a dying company for commercial aircraft by then. Being the second launch customer along with UA for the Boeing 777 would have been a much better choice. And Leo Mullin; well, the financial mess that emerged over the last 5 years is clearly his doing more than anyone's.

I still think Ron Allen was the best choice to run DL after they bought WA in '87. Allen's major mistake/success was buying PA's European network in 1991 out of Chapter 11. The DL "tradition" is great for customer service, but little else. Their approach to people was novel, but it is dated. Doing something simply because of tradition is becoming obsolete in the airline business. Everybody's had to change the way they handle themselves and their customers.



It's a Great Day for Hockey!
User currently offlineSLCUT2777 From United States of America, joined Dec 2005, 3993 posts, RR: 11
Reply 13, posted (7 years 6 months 1 week 3 days 7 hours ago) and read 3412 times:

Quoting ORD (Reply 9):
I agree Delta should have bought 777s earlier than they did, but the MD-11 order was still important. Delta placed the MD-11 into service in 1990, five years before the 777 first went into service with United.

I was still a VERY STUPID move since there were other stop-gap options for DL during that time period. They could have picked up some remaining A310's from PanAm, or they could have also acquired some 763s even though the ER version wasn't quite ready if I recollect, to do the Asian routes from PDX back in 1991. The 777 was clearly in development from Boeing and this was a case where DL should have waited for something new, even more so than getting more 777s now vs. waiting to place a 787 order. But Ron Allen simply kept an old loyalty that should have been tossed out the window by then and went back to Douglas for the MD-11, a company that was on it's last legs and in far more trouble than Airbus is now.

Quoting USPIT10L (Reply 12):
I still think Ron Allen was the best choice to run DL after they bought WA in '87. Allen's major mistake/success was buying PA's European network in 1991 out of Chapter 11. The DL "tradition" is great for customer service, but little else. Their approach to people was novel, but it is dated. Doing something simply because of tradition is becoming obsolete in the airline business. Everybody's had to change the way they handle themselves and their customers.

And look how quickly Mullin reacted during the 90s when he took over. Many of Mullin's mistakes with Delta started during the Allen era, and much of his work was an attempt to correct many of Allen's mistakes, the MD-11 being one of the two biggest, the other being the cash thrown away to get PanAm's European route structure that benefited DL very little in the early to mid 1990s.



DELTA Air Lines; The Only Way To Fly from Salt Lake City; Let the Western Heritage always be with Delta!
User currently offlineOttoPylit From , joined Dec 1969, posts, RR:
Reply 14, posted (7 years 6 months 1 week 3 days 7 hours ago) and read 3388 times:

Quoting B777-700 (Reply 2):

Saw this one coming a mile away. Gerry is the guy to get the company thru BK. Jim is the guy to get it into the future. He's a stand up guy, and Gerry will be leaving it in good hands.



Quoting Bucky707 (Reply 3):
I agree. Whitehurst is a visionary who is looking five years down the road. Delta has had enough of management who is reacting to developments that are six months old.

Agreed. And he stated in another interview that his successor will come from inside the company and will have been around the airline industry for some time.

Jerry never said he would be there forever and feels the obligation to stand up and be the tower to get DL through bankruptcy.



OttoPylit


User currently offlineMCOflyer From United States of America, joined Jun 2006, 8625 posts, RR: 15
Reply 15, posted (7 years 6 months 1 week 3 days 7 hours ago) and read 3367 times:

I still Grinstein is an ass for cutting pilot retirment funds. But I do hope the next CEO will bring back them.

MCOflyer



Never be afraid to stand up for who you are.
User currently offlineDL Widget Head From United States of America, joined Apr 2000, 2071 posts, RR: 5
Reply 16, posted (7 years 6 months 1 week 3 days 6 hours ago) and read 3360 times:

Quoting IH8B6 (Reply 7):
So CEO will between Jim Whitehurst and Ed Bastain.

Although they are both great...I'm sure the nod will go to Whitehurst and he's got my vote as well. He will be the dynamic CEO DL has been looking for and needed for the last couple of decades.


User currently offlinePanamair From United States of America, joined Oct 2001, 4792 posts, RR: 25
Reply 17, posted (7 years 6 months 1 week 3 days 1 hour ago) and read 3249 times:
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Quoting MCOflyer (Reply 15):
I still Grinstein is an ass for cutting pilot retirment funds.

What did you expect him to do given the circumstances with the lump-sums? You would not have done differently either if you were in that situation, or you would have been fired.

Quoting DL Widget Head (Reply 16):
Although they are both great...I'm sure the nod will go to Whitehurst and he's got my vote as well. He will be the dynamic CEO DL has been looking for and needed for the last couple of decades

Whitehurst gets to be the general public face of DL more than Bastian (whose public is really the BK court and creditors) though both are excellent in each of their respective areas. As someone mentioned above, hopefully one being promoted won't prompt the other to leave...DL needs both of them.


User currently offlinePositiverate From United States of America, joined May 2005, 1590 posts, RR: 8
Reply 18, posted (7 years 6 months 1 week 2 days 19 hours ago) and read 3179 times:

Quoting SLCUT2777 (Reply 13):
Quoting ORD (Reply 9):
I agree Delta should have bought 777s earlier than they did, but the MD-11 order was still important. Delta placed the MD-11 into service in 1990, five years before the 777 first went into service with United.

I was still a VERY STUPID move since there were other stop-gap options for DL during that time period. They could have picked up some remaining A310's from PanAm, or they could have also acquired some 763s even though the ER version wasn't quite ready if I recollect, to do the Asian routes from PDX back in 1991. The 777 was clearly in development from Boeing and this was a case where DL should have waited for something new, even more so than getting more 777s now vs. waiting to place a 787 order. But Ron Allen simply kept an old loyalty that should have been tossed out the window by then and went back to Douglas for the MD-11, a company that was on it's last legs and in far more trouble than Airbus is now.

So to sum up your argument then, DL should have passed up the MD-11 in favor of the A310 to open up routes like LAX-NRT, PDX-BKK, PDX-NRT, PDX-SEL, PDX-HKG until the 777 was ready? Um, ok.


User currently offlineSLCUT2777 From United States of America, joined Dec 2005, 3993 posts, RR: 11
Reply 19, posted (7 years 6 months 1 week 2 days 18 hours ago) and read 3161 times:

Quoting Positiverate (Reply 18):
So to sum up your argument then, DL should have passed up the MD-11 in favor of the A310

The A310 was just one possibility, but DL also could have hung onto the Western Airlines DC-10s longer as well. The bottom line is the MD-11 was a disaster for DL that they are still paying the piper over.

Quoting MCOflyer (Reply 15):
I still Grinstein is an ass for cutting pilot retirement funds. But I do hope the next CEO will bring back them.

What other option did he have? The lump-sum was unsustainable as well as unrealistic. I being in Financial Fantasyland to think something that generous will ever make a comeback.

Quoting Panamair (Reply 17):
You would not have done differently either if you were in that situation, or you would have been fired.

Couldn't be better said!

Quoting Panamair (Reply 17):
Whitehurst gets to be the general public face of DL more than Bastian (whose public is really the BK court and creditors) though both are excellent in each of their respective areas. As someone mentioned above, hopefully one being promoted won't prompt the other to leave...DL needs both of them.

I'm sure they will work something out. It would be interesting to know how well Jim and Ed work together and how well they could work together without Gerry being just a door down the hall. If Jim can use his visionary skills and can communicate with Ed what the realistic finances for such are, and there is some power sharing arrangement between them then it might be possible for a Jim Whithurst as CEO (Logistics & Operations) and Edward Bastian as Associate CEO (Finance & Investment Relations) setup to run DL for the foreseeable future after 2007. That could be a win win for DL! Get ready to put them back in the stock portfolio! airplane   dollarsign   dollarsign 



DELTA Air Lines; The Only Way To Fly from Salt Lake City; Let the Western Heritage always be with Delta!
User currently offlineTravatl From United States of America, joined Mar 2001, 2173 posts, RR: 7
Reply 20, posted (7 years 6 months 1 week 2 days 18 hours ago) and read 3159 times:

Quoting SLCUT2777 (Reply 19):
That could be a win win for DL! Get ready to put them back in the stock portfolio!

My thoughts exactly....


User currently offlineBobnwa From United States of America, joined Dec 2000, 6346 posts, RR: 9
Reply 21, posted (7 years 6 months 1 week 2 days 16 hours ago) and read 3123 times:

Quoting MCOflyer (Reply 15):
I still Grinstein is an ass for cutting pilot retirment funds. But I do hope the next CEO will bring back them

Was DALPA also asses for supporting the move? What would you have done?


User currently offlineXflyer From United States of America, joined Oct 2006, 39 posts, RR: 0
Reply 22, posted (7 years 6 months 1 week 2 days 16 hours ago) and read 3094 times:

DALPA negotiated an new deal for their retirement. Cash and warrants that will be worth cents on the dollar. $2.1B total in fact. Active pilots will not know what they really got until it is too late. Delta did not bother to cut the retirement of highly compensated management or even any of management. Why not take back the $65M trust fund they created to guarantee the retirement of executives in bankruptcy. The PBGC looks back 3 years why can't Delta do the same. DALPA and the company said the retirement fund was fully funded and could handle all early retirements. Lots of lies to go around for all.

User currently offlinePositiverate From United States of America, joined May 2005, 1590 posts, RR: 8
Reply 23, posted (7 years 6 months 1 week 2 days 15 hours ago) and read 3074 times:

Quoting SLCUT2777 (Reply 19):
Quoting Positiverate (Reply 18):
So to sum up your argument then, DL should have passed up the MD-11 in favor of the A310

The A310 was just one possibility, but DL also could have hung onto the Western Airlines DC-10s longer as well. The bottom line is the MD-11 was a disaster for DL that they are still paying the piper over.

Both of which are airplanes that did not have the performance to fly those routes. Furthermore, with the A310 you're trading one crappy airplane that doesn't fit in the fleet for another crappy airplane that doesn't fit in the fleet. If anything, they could have kept using the L15's out of PDX.

Quoting Bobnwa (Reply 21):
Quoting MCOflyer (Reply 15):
I still Grinstein is an ass for cutting pilot retirment funds. But I do hope the next CEO will bring back them

Was DALPA also asses for supporting the move? What would you have done?

The bankruptcy judge never would have let the company come out of BK with the plan intact. Furthermore, the pilot group and the pilot retirees conveniently forget that they were parties to the termination, and agreed with the termination in court.


User currently offlineSLCUT2777 From United States of America, joined Dec 2005, 3993 posts, RR: 11
Reply 24, posted (7 years 6 months 1 week 2 days 13 hours ago) and read 3042 times:

Quoting Positiverate (Reply 23):
If anything, they could have kept using the L15's out of PDX.

 checkmark 
Which is another viable option, but I really think DL and Ron Allen wanted to maintain tradition with the use of McDonnell/Douglas aircraft so hence they rushed into an MD-11 order that in the long run proved to be a financial fiasco. The Tri-Star was a great part of DL's fleet but was clearly ready to be phased out by Y2K. By the mid 1990s DL could have taken delivery of some 777s and perhaps not run into some of the issues they ran into with DALPA as it did when they wanted to bring it on 4-5 years later.



DELTA Air Lines; The Only Way To Fly from Salt Lake City; Let the Western Heritage always be with Delta!
25 Positiverate : But at the time of delivery the airplane made sense. And it was a much better choice then the A310 or the DC-10 in 1990 to open up long haul Asian se
26 Post contains images COIAH756CA : Who knows when DL will come out of Chapter 11.. Hopefully never.
27 DL4EVR : Is that supposed to be a joke?
28 COIAH756CA : Yes. Even though I am not too fond of DL, I would never wish that upon an airline. Except WN. That is NOT a joke.
29 Post contains images DL4EVR : LOL. Gotta agree with you on that one. If that happened, maybe the current industrywide race to the bottom would halt
30 MCOflyer : I would have KEPT the retirement funds. I would have cut 20 or so MD80's for that. Sometimes down sizing in domestic capacity is the way to go. If I
31 COIAH756CA : Probably. Jeez, I hate WN.
32 DAL767400ER : Um, just what world are you living in? Let me remind you about which planes DL has pulled off domestic routes in recent memory: 40+ 737-200s 20+ 737-
33 Positiverate : Indulge us an walk us through the economics of how cutting 20 or so MD-88's would have offset the almost one billion dollars in underfunding to the p
34 Alitalia744 : Joking or not, it's not a nice thing to say for those on this board who work at Delta day in and day out trying to make it a better place. One just h
35 Post contains images COIAH756CA : I was there. The horrible times are now very far away and I sure hope they stay that way. . I competely agree.
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