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UA Wooing DL Planning Execs?  
User currently offlineenilria From Canada, joined Feb 2008, 7111 posts, RR: 13
Posted (3 years 10 months 1 week 1 day 2 hours ago) and read 11142 times:

The rumor is that the new United is attempting to lure two of Delta's senior planning staff to the new United. Delta EVP Planning, Glen Hauenstein worked for Continental in the 1990s as well as his lieutenant VP of Planning, Robert Cortelyou. Cortelyou also was an executive at United earlier in his career. Both are largely credited with the successful network integration of DL and NW. The rumor is that the new UA want these two back to help put together the two companies. Certainly, the this makes sense as both have intimate knowledge of the new UA from their past experiences. Personnel changes may seem insignificant, but given that these two execs have set DL's route strategy over the last few years it would have a dramatic effect.

United's senior planners were "severanced" in recent weeks and presently the combined group is being directed by staff in Houston.


from delta.com
Glen W. Hauenstein

Glen W. Hauenstein is Executive Vice President – Network Planning and Revenue Management. He joined Delta in August 2005. The 20-year veteran of the airline industry was previously Vice General Director for Alitalia, serving in the dual role of Chief Commercial Officer and Chief Operating Officer.

Under Glen's leadership, Alitalia's revenues grew by almost 20 percent while the aircraft fleet was reduced by more than 10 percent. This dramatic rise in revenue in conjunction with significantly increased asset utilization has been the lynchpin of Alitalia's recapitalization plan. In his role as Chief Commercial Officer, Glen led a major restructuring of Alitalia's route network, which improved schedule connectivity by more than 50 percent. As Chief Operating Officer, Glen and his team were responsible for one of the most impressive operational turnarounds in modern aviation.

Prior to joining Alitalia in 2003, Glen was Senior Vice President, Network for Continental Airlines, where he was responsible for planning and execution of the airline's schedule, fleet, pricing, and revenue management strategies. Glen joined Continental in 1987 as International Controller.

Glen is a 1982 graduate of Stetson University, where he received a bachelor's degree in Finance.


33 replies: All unread, showing first 25:
 
User currently offlineenilria From Canada, joined Feb 2008, 7111 posts, RR: 13
Reply 1, posted (3 years 10 months 1 week 1 day 2 hours ago) and read 11078 times:

Quoting enilria (Thread starter):
Personnel changes may seem insignificant, but given that these two execs have set DL's route strategy over the last few years it would have a dramatic effect.

It should be noted that Hauenstein was not present on the Delta 3Q quarterly conference call today for the first time in several years. A question in the Q+A was directed at him and another exec said "Glen is out this week". Draw your own conclusions.


User currently offlinejunction From United States of America, joined Mar 2005, 766 posts, RR: 0
Reply 2, posted (3 years 10 months 1 week 1 day 2 hours ago) and read 11016 times:

Where did you hear this? I'm at merger ground zero in Houston and haven't even heard it.

User currently offlineenilria From Canada, joined Feb 2008, 7111 posts, RR: 13
Reply 3, posted (3 years 10 months 1 week 1 day 1 hour ago) and read 10922 times:

Quoting junction (Reply 2):
Where did you hear this? I'm at merger ground zero in Houston and haven't even heard it.

It's coming from Chicago.


User currently offlineAtlwest1 From United States of America, joined Jan 2009, 1046 posts, RR: 1
Reply 4, posted (3 years 10 months 1 week 1 day 1 hour ago) and read 10923 times:

Im pretty sure there are steep non compete clauses in there contracts and packages at Delta. It might restrict them to past the useful time for what UA/CO need them for.


ALL views, opinions expressed are mine ONLY and are NOT representative of those shared by Southwest Airlines Co. or Airt
User currently offlinediverdave From United States of America, joined Mar 2010, 330 posts, RR: 0
Reply 5, posted (3 years 10 months 1 week 1 day 1 hour ago) and read 10882 times:

Why would UA want somebody whose work is so regularly denigrated on a.net?   

Let them get their own dartboard! 

David


User currently offlinejunction From United States of America, joined Mar 2005, 766 posts, RR: 0
Reply 6, posted (3 years 10 months 1 week 1 day 1 hour ago) and read 10882 times:

Quoting enilria (Reply 3):
It's coming from Chicago.

Well it would make some sense if true I suppose. I've heard of others wanting to come back and get their teeth into this merger but your rumor is a new one.


User currently offlineenilria From Canada, joined Feb 2008, 7111 posts, RR: 13
Reply 7, posted (3 years 10 months 1 week 1 day 1 hour ago) and read 10883 times:

Quoting Atlwest1 (Reply 4):
Im pretty sure there are steep non compete clauses in there contracts and packages at Delta. It might restrict them to past the useful time for what UA/CO need them for.

That makes sense. Maybe that's why it hasn't already happened. OTOH, usually if you turn down the golden parachute you can do whatever you want. It would depend upon how "in the money" they are at Delta and whether the new UA would "make them whole".

Menke went from an AC VP to F9 CEO by simply giving up several million he was owed.

[Edited 2010-10-20 08:09:50]

User currently offlinerl757pvd From United States of America, joined Dec 1999, 4659 posts, RR: 11
Reply 8, posted (3 years 10 months 1 week 1 day 1 hour ago) and read 10762 times:

Quoting enilria (Reply 7):
Menke went from an AC VP to F9 CEO by simply giving up several million he was owed.

There are two different countries involved there.

Even without golden parachutes non-competes come into play, and I would hope Delta would be smart enough to have them in their contracts. Wasnt this the case with David Neelman and B6?



Experience is what you get when what you thought would work out didn't!
User currently offlineenilria From Canada, joined Feb 2008, 7111 posts, RR: 13
Reply 9, posted (3 years 10 months 1 week 1 day 1 hour ago) and read 10674 times:

Quoting diverdave (Reply 5):
Why would UA want somebody whose work is so regularly denigrated on a.net?   
Let them get their own dartboard! 
David

Is there any poster on a.net that would get the support of even the majority of other posters? LOL
I like your comment, though. Having said that, I have a lot of respect for what the DL Planning people have done. UA would be very lucky to get either of them.

Quoting rl757pvd (Reply 8):
Even without golden parachutes non-competes come into play, and I would hope Delta would be smart enough to have them in their contracts. Wasnt this the case with David Neelman and B6?

Yes, but David definitely took the money.

It would also probably depend upon where you are in your contract. No way to know, but the fact these things are so complicated are why these types of things don't happen quickly. He could be negotiating with both UA and DL to either stay or go, or he could simply have said no already and this whole thing is DOA.


User currently offlinePSU.DTW.SCE From United States of America, joined Jan 2002, 7555 posts, RR: 28
Reply 10, posted (3 years 10 months 1 week 19 hours ago) and read 9937 times:

Agree with others, there is almost certainly some type of non-compete clauses in there that would make this more difficult (but not necessarily impossible). If they had already left to go somewhere else, or do something else already I would put more faith in such rumors.

Add this to the neverending and overflowing rumor file for now.

Plus, at this point in time bring in an entirely new regime may not be the best thing going. The executives don't make the team, it is the underlying cast of everyone else and what groups in the company have the most pull at setting the course ahead.


User currently offlineenilria From Canada, joined Feb 2008, 7111 posts, RR: 13
Reply 11, posted (3 years 10 months 1 week 18 hours ago) and read 9587 times:

Quoting PSU.DTW.SCE (Reply 10):
Plus, at this point in time bring in an entirely new regime may not be the best thing going. The executives don't make the team, it is the underlying cast of everyone else and what groups in the company have the most pull at setting the course ahead.

All good points, but certainly if the DL Planning people were as effective at UA as they've been at DL it would be amazing for the merged company.


User currently offlinePSU.DTW.SCE From United States of America, joined Jan 2002, 7555 posts, RR: 28
Reply 12, posted (3 years 10 months 1 week 17 hours ago) and read 9541 times:

Quoting enilria (Reply 11):
All good points, but certainly if the DL Planning people were as effective at UA as they've been at DL it would be amazing for the merged company.

I don't think the success at DL is attributed totally to the people at the head of route planning, it was more or less a matter of timing (getting out of ahead of the pack into new markets), a matter of effectively utilizing the resources (fleet, existing network, hubs), and having the backing of the BOD and C-suite to take risks.

Without the backing of the BOD and C-suite, enabling them to take calculated risks and execute a new strategy they wouldn't have been successful.


User currently offlineenilria From Canada, joined Feb 2008, 7111 posts, RR: 13
Reply 13, posted (3 years 10 months 1 week 16 hours ago) and read 9306 times:

Quoting PSU.DTW.SCE (Reply 12):
Without the backing of the BOD and C-suite, enabling them to take calculated risks and execute a new strategy they wouldn't have been successful.

I choose to give credit to those who create a successful plan, but you can choose to chearlead those who approve it or implement it in equal measure as you wish. I would never give credit to those who would simply approve it, but those who implement it are certainly very important.


User currently offlinePSU.DTW.SCE From United States of America, joined Jan 2002, 7555 posts, RR: 28
Reply 14, posted (3 years 10 months 1 week 16 hours ago) and read 9183 times:

Quoting enilria (Reply 13):
I choose to give credit to those who create a successful plan, but you can choose to chearlead those who approve it or implement it in equal measure as you wish. I would never give credit to those who would simply approve it, but those who implement it are certainly very important.

Creating a strategy is the easy part, implementing it, changing the culture, and sustaining it are the hard part.


User currently offlinecatiii From United States of America, joined Mar 2008, 3029 posts, RR: 4
Reply 15, posted (3 years 10 months 1 week 14 hours ago) and read 8388 times:

Quoting Atlwest1 (Reply 4):
Im pretty sure there are steep non compete clauses in there contracts and packages at Delta.
Quoting rl757pvd (Reply 8):
Even without golden parachutes non-competes come into play,

All of which are easy to get out of.


User currently offlineskyguyB727 From , joined Dec 1969, posts, RR:
Reply 16, posted (3 years 10 months 1 week 14 hours ago) and read 8316 times:

Quoting rl757pvd (Reply 8):
Even without golden parachutes non-competes come into play, and I would hope Delta would be smart enough to have them in their contracts.

It appears that DL executives do not have any contracts. Therefore, they could do whatever they please upon their separation of employment.

This is what I just found on a Q&A posting about DL execs:

Rumor: Delta executives have employment contracts.
Fact: Not true. Delta executives do not have employment contracts.
Let’s set the record straight once and for all.
None of our current Delta executives has employment contracts.
This includes Richard Anderson, Mike Campbell, Ed Bastian, Joanne
Smith or any other Delta executives.


User currently offlineMarkam From United States of America, joined Jan 2008, 441 posts, RR: 1
Reply 17, posted (3 years 10 months 1 week 11 hours ago) and read 7488 times:

Quoting skyguyB727 (Reply 16):
It appears that DL executives do not have any contracts.

Pardon my ignorance, but what does it exactly mean that "they have no contracts"? Surely they must have some kind of formal relationship with Delta, right?


User currently offlineLAXintl From United States of America, joined May 2000, 25077 posts, RR: 46
Reply 18, posted (3 years 10 months 1 week 11 hours ago) and read 7432 times:

Must be some very loose definition of contract.

Even as mid-level management at companies I had an agreement essentially they spelled out things like my compensation, incentive pay, bonus, stock grants, vesting schedules, expense allowance, travel and lodging allowances, ability to work for others, etc.

Sure my employment was "at will" and I could come and go as I or the company pleased, but there still was a contractual relationship defining what was expected of each party.



From the desert to the sea, to all of Southern California
User currently offlineskyguyB727 From , joined Dec 1969, posts, RR:
Reply 19, posted (3 years 10 months 1 week 1 hour ago) and read 6102 times:

Quoting Markam (Reply 17):
Pardon my ignorance, but what does it exactly mean that "they have no contracts"?

Read the rest of my post. According to information put out by DL, no DL executives have contracts of any kind. They maintain that employees don't need contracts, because even the top level executives don't have contracts.


User currently offlineMarkam From United States of America, joined Jan 2008, 441 posts, RR: 1
Reply 20, posted (3 years 10 months 6 days 19 hours ago) and read 5761 times:

Quoting skyguyB727 (Reply 19):
Read the rest of my post. According to information put out by DL, no DL executives have contracts of any kind. They maintain that employees don't need contracts, because even the top level executives don't have contracts.

Alright, but then so, what determines what an executive will earn, what is the scope of his/her position, etc.?


User currently offlineLAXtoATL From United States of America, joined Oct 2009, 1590 posts, RR: 2
Reply 21, posted (3 years 10 months 6 days 18 hours ago) and read 5692 times:

Quoting Markam (Reply 20):

Alright, but then so, what determines what an executive will earn, what is the scope of his/her position, etc.?

Exactly. Call it a letter of understanding if you like, but they signed a piece of paper when they accepted the job. I think when they say that no one has a contract, they are likely saying that no one has a contractually guaranteed employment term, thus they can be fired or let go at anytime without further compensation. But certainly Delta would require all high level execs to sign non-compete confidentiality clauses - there is no way DL or any other large corporation would allow an exec with intimate knowledge of their operation to take that knowledge to a competitor and use it against them. Its called business and it is standard operating procedure. Depending on the relationship the employee has with his/her employer and the relationship between the employer and potential employer, the employer can waive the right. My bottom line is that without any knowledge specific to this case, I am confident that Hauestein is not leaving Delta to join United without Delta's blessing.


User currently offlinegonnagetbumpy From United States of America, joined May 2009, 45 posts, RR: 0
Reply 22, posted (3 years 10 months 6 days 18 hours ago) and read 5681 times:

All employees sign a letter of agreement when joining the company. It has rules/requirements etc. It is not a contract but an employment agreement. Same as management has.

User currently offlineMarkam From United States of America, joined Jan 2008, 441 posts, RR: 1
Reply 23, posted (3 years 10 months 6 days 18 hours ago) and read 5622 times:

Quoting gonnagetbumpy (Reply 22):
All employees sign a letter of agreement when joining the company. It has rules/requirements etc. It is not a contract but an employment agreement. Same as management has.

I see, thanks for the explanation.


User currently offlineenilria From Canada, joined Feb 2008, 7111 posts, RR: 13
Reply 24, posted (3 years 10 months 6 days 15 hours ago) and read 5467 times:

Quoting Markam (Reply 17):
Pardon my ignorance, but what does it exactly mean that "they have no contracts"? Surely they must have some kind of formal relationship with Delta, right?
Quoting skyguyB727 (Reply 16):

Rumor: Delta executives have employment contracts.
Fact: Not true. Delta executives do not have employment contracts.
Let’s set the record straight once and for all.
None of our current Delta executives has employment contracts.
This includes Richard Anderson, Mike Campbell, Ed Bastian, Joanne
Smith or any other Delta executives.
Quoting Markam (Reply 20):
Alright, but then so, what determines what an executive will earn, what is the scope of his/her position, etc.?

Wow, that puts a new light on this whole thread. I know why they did this. It's because Delta is mostly non-union and hopes to stay that way. It would be awkward to tell FAs they don't need a contract to be treated fairly, while the executive saying it had a contract protecting him or her from such things as sudden termination.

So, back to where I began...what they have is a termination agreement. If they want their stock options, pension, severance (collectively known as "the golden parachute") they have to sign a no compete, but if they elect to pass on those riches they can move on unfettered.

BTW, Delta had another air service press release today about GRU and yet again there was no quote from Hauenstein or Cortelyou. There was a quote from the DL Govt Affairs person which is odd. Draw your own conclusions.


25 goldenstate : [deleted} .[Edited 2010-10-21 18:48:53]
26 lucky777 : No need to. Unless you have indisputable facts to add to the argument, it's all just hot air. What's that old adage about ASSmuptions and those who m
27 PSU.DTW.SCE : Seriously...you make so many loosely connected assumptions, it isn't even speculation. It is as if you hope all of these sinister sorries come throug
28 aviationbuff08 : Well I'd say its a bit suspicious that Mr. Hauenstein has not been making any public comments on behalf of DL recently, in matters where he has commen
29 lucky777 : he/she/i And whom has said (besides the resident bloviators here on airliners.net)United is actively recruiting them? And no, the voices in your head
30 enilria : Why is it sinister for an employee of any sort to look to do better for themselves with a new job? I assume you have never undertaken any "sinister"
31 globaldude : If I am not mistaken, Hauenstein was recruited away form Continental. Why would this scenario be any different?
32 LAXtoATL : Delta recruited him from alliance partner Alitalia.
33 enilria : You may both be right. CO did have a no compete clause. He went to AZ to wait out the no compete and then went to Delta. It's possible that DL was "w
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