Delta Leadership

In 2005, under the leadership of Leo Mullin, Delta Airlines, the 3rd largest airlines in the U.S.entered into bankruptcy.  The terrorist attacks  of 9/11 rocked the industry to its core; accompanied with high fuel prices and competition from low-fare competitors, leadership had no other option.

Strategies that led to Bankruptcy

• 2001 Labor deal with pilots that paid salaries in the $300,000 range.
• launch of Song discount airlines to compete against JetBlue (very high exit barrier costs)
• Management always had to have the biggest and the best, it was "The Delta Way"

"The Delta Way" almost caused Delta Airlines to not exist.

With the dismissal of Leo Mullin, Gerald Grinstein stepped in as CEO and had to get all employees on board to believe in his strategy.  Signs of a good leader is to lead by example.

• Deep pay cuts for everyone. (he took a 25% pay cut)
• Working with creditors

By 2009 Delta Airlines was out of bankruptcy and with a new CEO, Richard H. Anderson.  Under his strategic leadership Delta Airlines has maintained growth with the merger of Northwest Airlines.

Strategy

• Joining forces with Northwest added strength in Asia combined with their stronghold in Europe.
• Built around paternalistic culture

The strategic leaders of Delta Airlines continue to lead by example in making the right decision at the right time.

  http://www.businessweek.com/magazine/content/09_21/b4132036798289.htm