Delta Air Lines has promoted Frederick Reid to president and chief operating officer. The move is in response to challanges facing the US carrier, including a new pilots' contract which would increase costs by $2.4 billion over five years.
Reid, previously executive vice-president, chief marketing officer, takes over day-to-day management of the airline from Leo Mullin, who continues as chairman and chief executive officer. Mullin has been responsible for all aspects of the airline since the previous president and COO retired in 1999.
"We had a fairly flat organisation," says Mullin. "In light of the pressures on us, we needed to clarify the chain of command," he adds. Reid's promotion will increase the focus on operational effectiveness, Mullin claims. Delta's current executive vice-president, operations, Mac Armstrong, is to retire. He will work with Reid as an advisor during the transition.
Reid joined Delta in 1998 from Lufthansa, where he was president and chief operating officer. Vicki Escarra, currently executive vice-president, customer service, succeeds Reid.
Mullin, meanwhile, says Delta plans to return to profitability "reasonably quickly". The airline posted a $122 million loss for the first quarter. The carrier plans to make "very substantial cost changes" over the rest of this year, but Mullin expects some of the savings to come from the increased productivity of its new Boeing aircraft.
Source: Flight International
