Overall, I just don't think Delta Air Lines gets it.

Delta's CEO, Richard Anderson, did an interview with Financial Times. My wife and I fly Delta a lot, so I watched. In general, he blamed the current problems with air travel on our aging air traffic control system and high oil prices. I've got a minor problem with that. You see, I just about enjoy flying on certain airlines, JetBlue for example. But flying Delta coach, that's just no fun.

Hmm, now why would ATC or high oil prices affect Delta and not JetBlue? Mr. Anderson doesn't really get specific about his airline, he pretty much generalizes.

So I'll postulate a few theories.

1. Delta management's too busy to actually run an airline for its customers.

Delta spent several years trying to stave off bankruptcy yet failed. Ultimately, they spent a lot of time and effort to ditch excess accumulated debt and please the court. Their basic staff - pilots, flight attendants, and mechanics - all suffered through the bankruptcy, losing pay, jobs, security, and probably a lot of the joy they had previously in their work. As one example, the pilots took a 42% pay reduction through this time. In contrast, executive management took a 15% reduction, about a third of what they pilots faced. And the CEO? Did he suffer as his flight captains did? Not really, he took a 25% pay cut.

The bankruptcy helped, Delta went on to profitability in 2007. They just can't keep it up. Mr. Anderson expects losses for the full year 2008.

But management continues spinning their wheels. Earlier this year they confirmed rumors that Delta would merge with Northwest Airlines. I've got almost no clue why they think this will help. Nor can I find any published information that gives a good lead where they think the benefit is. Mr. Anderson said in the interview that the merger savings are less cost savings, instead mentioning 'benefits'. Just what 'benefits' are these? I'll venture a guess that quite a few upper level executives that will come out of the merger with very nice packages. As for the employees, public announcements already admit there will be layoffs and job cuts from duplication. And the customers? We're pretty much in the dark, but I'm not expecting much. Good time to use up those frequent flier miles.

In the last 10 years, Delta has seen flight operations drop by almost half. For the same period, Southwest increased by about 50%. JetBlue tripled their flight operations in half the time.

Admittedly, Delta still carries more passengers - basically they're shoving us into larger planes.

2. Delta's betting too much on frequent fliers

Over the last year in particular, Delta's been jacking up their fees and cracking down on services. Not so bad as one other airline that now charges for water and other non-alcoholic beverages on its flights, but bad enough. Want to stand by for another flight? That's a fee. Want to check-in 2 bags instead of carrying them on the plane? That's a fee. Any of those bags overweight? That's a fee. Want a headset to listen to the in-air entertainment? That's a fee. Want something to eat? That's a fee (at least I haven't seen an 'included' meal in Delta coach class for who knows how many years).

But if you're a Delta frequent flier, most of those go away. 3 free checked bags. Reduced weight restrictions on checked bags. Upgrades to first class where the headphones wait at your seat and meals come just about every flight. Heck, even changes in flights are free for same day confirmed.

So Delta's trying to make up increased oil costs by charging the cattle every little bit they can get away with. They know that frequent & corporate travelers wouldn't abide by such niggling fees. What they're failing to pay attention to is that the non-frequent flier customers have more and more options for better airlines. Southwest. JetBlue. Virgin America. Each of which offers more for less.

3. Delta doesn't K.I.S.S. on the first date. Or the fifteenth.

Keep It Simple Stupid. Delta doesn't know this one. Here's just a few examples:

- a fee structure that requires an actuarial license to understand
- over half a dozen different in-air entertainment systems (even their crews are often stumped...)
- a little complication called the merger with Northwest

4. Delta expects help to come from outside

I guess after running through bankruptcy, it's a fair assumption: rack up the problems and let someone else take care of them for you. In the interview, Mr. Anderson's desired solutions to the air traffic control system and high oil prices both require outside resolution. For the ATC, he wants a new system implemented. Understandable and all good, but how about what Delta could do for itself. Relax the flight schedules a bit? Add in some inexpensive redundancy? AirTran does all that pretty well.

As for the oil prices, Mr. Anderson says, "The price of oil is still too high for airlines", and wants government controls. Southwest's done pretty well hedging it's fuel costs. I think JetBlue lost its profitability this year due to oil costs, but then, Delta's not in a good position to talk about making money.




I've already written a bit about what I think Delta could do, at least from the consumer's point of view. It's probably too late to call off the merger with Northwest, but I'd say to Delta, if it's not too late, call it off. Energize your employees into organic growth, the kind you had when you put Eastern Airlines out of business. Return to your roots, remember that your core business is to take people from one place to another. Start doing that in style again. Give us a reason to remember why you're a "full service" airline, not just a good frequent flier program.

Make your employees, and your customers, happy.

And in the meantime, I keep hoping that JetBlue re-enters the Atlanta market or that Virgin America starts to set up shop here.