LoneStarMike
Topic Author
Posts: 2804
Joined: Sat Jul 01, 2000 1:02 pm

USA Today Article On DL's Leo Mullin

Sun Aug 31, 2003 7:34 am

Delta CEO navigates complex, turbulent course
08/28/2003
By Marilyn Adams, USA TODAY

ATLANTA — Delta Air Lines CEO Leo Mullin never dreamed his job would be this rough so long after Sept. 11.

Delta, considered the strongest big carrier right after the terrorist acts, is struggling with higher costs and more brutal competition than most. Its shares, which soared past $70 in spring 1999, hover around $12. Mullin, a former utility executive who replaced an unpopular Delta CEO six years ago, now faces perhaps bigger competitive and morale problems than his predecessor.

more

He sure looks grim in that picture.

LoneStarMike

 
DeltaAir
Posts: 1061
Joined: Tue May 18, 1999 4:41 am

RE: USA Today Article On DL's Leo Mullin

Sun Aug 31, 2003 7:45 am

Quite Sad. Delta was one of the last airlines to retain the "good old fashion" way of service seen throughout the US airline industry. Employees were known to pull together during rocky times in the 1980s, even bought a 767-200, but times have changed. The "good old fashion" southern airline known for its respect of customers and employees faces the challenge of changing with the times in order to survive.
 
luv2fly
Posts: 11056
Joined: Tue May 13, 2003 2:57 am

RE: USA Today Article On DL's Leo Mullin

Sun Aug 31, 2003 10:05 am

DeltaAir

Well said. It seems like DL has invested a whole lot in technology lately and has forgotten the personal touch with the flying public and employees.
You can cut the irony with a knife
 
bucky707
Posts: 955
Joined: Sat Aug 19, 2000 2:01 am

RE: USA Today Article On DL's Leo Mullin

Sun Aug 31, 2003 10:12 am

The really sad part is I can tell from the article that Leo still does not get it. He really has no idea why the employees are upset, nor any idea how to begin to regain their trust. Frankly, I think its time for him to leave.
 
dl1011
Posts: 315
Joined: Tue May 18, 1999 6:42 am

RE: USA Today Article On DL's Leo Mullin

Sun Aug 31, 2003 10:54 am

On Sept 2, Delta will inform it's non-contract employee's about changes in benefits. I think it would be safe to assume that these changes will be reductions in sick time and additional costs for short/long term disability, medical and dental insurance.

Speaking only for myself, I don't mind reductions in salary/benefits when the company is losing such vast sums of money and tries to figure out a way to compete. However, it does gall me that the upper management has protected pensions. I think Leo has lost a great deal of credibility over this issue. Too bad, such an intelligent and educated man.
 
nickofatlanta
Posts: 1276
Joined: Tue May 23, 2000 1:06 am

RE: USA Today Article On DL's Leo Mullin

Sun Aug 31, 2003 11:26 am

"While unionized workers at United and American have voluntarily taken billions of dollars a year in pay cuts, Delta's pilots remain the nation's best-paid."

Hopefully, DL's pilots will wake up to reality and not make DL have to go to the bankruptcy court to exert much-needed concessions.
 
Delta737
Posts: 469
Joined: Sat Jun 05, 1999 11:23 am

RE: USA Today Article On DL's Leo Mullin

Sun Aug 31, 2003 4:22 pm

Much needed concessions.

Pshaw, WHATEVER.

Cost per Available Seat Mile (CASM)
JetBlue: 6.07
Southwest: 7.68
Air Tran: 8.30
Continental: 8.67
Delta Air Lines: 9.71 <-----------------
Northwest Airlines: 9.84
American Airlines (after union concessions): 10.68
United Airlines (after union concessions): 11.21
US Airways (after union concessions): 12.10
 
dl1011
Posts: 315
Joined: Tue May 18, 1999 6:42 am

RE: USA Today Article On DL's Leo Mullin

Mon Sep 01, 2003 3:35 am

The pilots do not need to give up anything. The non union employee's will give up enough to protect the pilots!
 
DeltaSFO
Posts: 2407
Joined: Fri Nov 03, 2000 11:22 am

RE: USA Today Article On DL's Leo Mullin

Mon Sep 01, 2003 4:33 am

Quick question Doug....

Where did those numbers come from, and assuming those numbers are correct, if we're still losing money(and if it weren't for the government bailout money, we would have posted yet another loss last quarter), don't you think something needs to be done to stop the company from losing money?

And do you agree with ALPA's assertion that other groups haven't contributed? Even after the massive increases in healthcare costs and reductions in retirement benefits? Even though nobody else got a 30% raise two years ago?

You know I have a great deal of respect for you specifically, as well as all Delta pilots, but I think DALPA leadership is starting to lose touch with reality. It seems they keep going back and forth between being really reasonable and approachable and being fairly unrealistic in their expectations, and when something productive seems on the verge of happening between DALPA and DAL management, a wrench gets thrown in the works.

I might add that while I don't give DAL management the highest mark on labor relations in recent years, all accounts seemed to indicate that the initial proposal they made to DALPA regarding concessions was extremely reasonable and generous relative to what UAL, US Air, and AMR pilots ultimately had to agree to. Is there anything you can say about that?

[Edited 2003-08-31 21:37:09]
It's a new day. Every moment matters. Now, more than ever.
 
dl1011
Posts: 315
Joined: Tue May 18, 1999 6:42 am

RE: USA Today Article On DL's Leo Mullin

Mon Sep 01, 2003 1:19 pm

DeltaSFO,

No offense, but no matter what anyone thinks about the pilots pay, the pilots were smart enough to negotiate a contract and Leo agreed to that contract. The rest of us were/are too dumb to have a contract. The pilots know EXCACTLY what they have and when they will have it. The rest of us have to wait until Tuesday morning to see what next years benefits will be and how much they will cost. And the benefits can change again the following Tuesday. Of course, Chapter 11 changes everything.

Cheers.
 
Delta737
Posts: 469
Joined: Sat Jun 05, 1999 11:23 am

RE: USA Today Article On DL's Leo Mullin

Mon Sep 01, 2003 2:16 pm

I dunno, whatsover.

One thing I do know is that I'm paid well to fly aircraft.

If my boss wants me to ante up part of my pay to "save the company" when he and 50 others are stuffing their coffers with multiple millions of dollars in bonuses, secular trusts, et all, I'm deaf.

Corporate america is sinking into some type of medival fuedalism and me working for free tomorrow surely isn't going to solve a single problem, but present a wealth of others.

Remember, we're buying jets, left and right and building new terminals, etc.

What's reasonable? I have no idea, but I do know that I have a contract, mutually agreeable by both parties that lays out the groundwork for what both my employer expects from me, and what I expect from my employer.

UAL, USAir and AMR, admittedly by Fred Reid himself, are undergoing problems which Delta is not. BTW, ask the average UAL, USAir or AMR pilot, post concessions if they had a chance, if they'd do it again.

Doug Taylor

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