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Thursday, May 03, 2001

Delta gets new day-to-day boss


CEO will focus on 'bigger issues'

By James Pilcher
The Cincinnati Enquirer

        Delta Air Lines on Wednesday named a new president and chief operating officer, as the head of the airline essentially handed off daily oversight of the company.

        Company chairman and chief executive officer Leo Mullin promoted vice president for marketing Fred Reid into the No. 2 spot, moving vice president for customer service Vicki Escarra into Mr. Reid's old spot.

Reid
Reid
        Mr. Reid, 50, is a former executive at now-defunct Pan Am who also joined Delta in 1998 after serving as president and CEO of German airline Lufthansa. He will oversee the day-to-day operations of the Atlanta-based airline, the nation's third largest carrier.

        Delta operates its second-largest hub at Cincinnati/ Northern Kentucky International Airport.

        Ms. Escarra, 48 and a 28-year Delta veteran, will oversee revenue management and the airline's Delta Express and Delta Shuttle business units, while retaining her control over customer service.

        Mr. Mullin said the moves will allow him to focus more time on external issues facing the airline.

        “It makes sense, because it allows Leo to concentrate on some of the bigger issues facing not only Delta but the entire industry,” said Rob Milmore, airline analyst for the Wall Street firm of Arnhold & S. Bleichroeder.

        The switches also come as Delta looks for a way to pay for a new pilot contract that would add $2.4 billion total in costs over the next four years.

        Leaders of the airline's 9,700-member branch of the Air Line Pilots Association have yet to endorse the deal and pass it on to the entire group for ratification — a decision that was expected early this week.

        The union leaders were still reviewing the deal in Atlanta on Wednesday.

       



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