The Associated Press
and the Cincinnati Enquirer

LONDON - Virgin USA said Friday that it hired the president of Delta Air Lines to lead the formation of a new budget carrier in the United States.

Frederick W. Reid, Delta's president and chief operating officer, was hired to get the new carrier off the ground by the first quarter of 2005, Virgin USA announced in New York.

The company is a subsidiary of Sir Richard Branson's Virgin Group, which also operates Virgin Atlantic Airways.

The announcement gave no details of where the new carrier would be based or what routes it intended to serve.

Reid may have been based in Atlanta, but he certainly had a hand in growing traffic here in Cincinnati, especially through regional jets.

Initiating the concept in his previous job as president of German airline Lufthansa, Reid helped Delta develop its initial regional jet strategy that pushed Erlanger-based Comair into the top tier of regional carriers.

Then, in 2000, Reid was instrumental in Delta's $1.91 billion purchase of Comair. Reid also became chairman of Delta Connection, Inc., the subsidiary that runs Delta's regional network.

Finally, Reid also was the most visible Delta executive during the 2001 Comair pilot strike. At one point, he came to the Cincinnati/Northern Kentucky International Airport to address non-striking workers and to send the message that the pilot's demands would not be met.

"Fred Reid understood very well the importance of regional jets to the airline industry and our customers," Comair president Randy Rademacher said in a statement Friday. "He has been an effective proponent of expanding regional jet operations at Delta and we appreciate his support over the years."

Reid has also held management positions with Pan Am World Airways and American Airlines.

"Fred will best position the airline to succeed in a competitive but poorly served market," said Frances Farrow, chief executive officer of Virgin USA, Virgin Group's business development arm.

"His extensive industry experience and passion to better serve the customer are a strong complement to Virgin's fresh approach to the airline industry."

Delta said Reid's retirement was effective April 1.

"Fred Reid has been an asset to Delta during his more than six years with us and we all wish him well in his future endeavors," said Delta CEO Gerald Grinstein.

"Looking ahead, Delta has great talent and a deep bench, which we will use to fill in behind Fred."

Staff writer James Pilcher contributed to this report.