|
| Question: Why
does Delta need an external advisor to assist in the project? |
Answer: An internal team of Delta employees
is completing the review, with external assistance and guidance. When reviewing an entire
company’s strategic direction and business plan, an outside point of view helps us to
avoid responding to some of Delta's issues with "we have always done it that
way."
Carl Sloane has extensive experience in helping companies go through this process and is
providing valuable guidance to the internal team. TOP |
| Question: Is
Delta using this project to prepare for bankruptcy? |
| Answer: No. The timing of our strategic
review is related to the new roles that Jack Smith and Jerry Grinstein are assuming at
Delta, and also to the rapid-fire pace of competitive change taking place in the industry.
Initiation of a full strategic reassessment of a company’s business plan is a step
normally followed by CEOs when they assume leadership, especially when the company –
like Delta – has experienced three years of substantial and unsustainable net losses.
The purpose of this review is to study every aspect of our operation, our resources and
our strategy to make sure we have accurately determined where our strengths lie and how to
best build upon them. TOP |
| Question: Will
there be major changes in Delta's route network and fleet? |
| Answer: When going through a process like we
are undertaking, the potential for major change certainly exists. However, there is also
the possibility that the current network fleet will be validated as the correct tools for
Delta to win in the long-term. TOP |
| Question: One
of the goals of the project is to review Delta's current strategy - what is our current
strategy? |
| Answer: Our current strategies center on
being an airline that satisfies customers, attracts and retains the best people, and
provides a meaningful return to investors. These are worthy achievements for any company,
and the strategy review project will ensure that Delta has the correct resources in place
to achieve them. TOP |
| Question: Does
a review of the current strategy mean that it is wrong? |
| Answer: No. At a time when the competitive
environment is changing rapidly and drastically with the growth of low-cost carriers,
technology improvements, and changing attitudes of travelers, it is a good time to examine
each aspect of our company to ensure we are on the correct path to meet the needs of all
of our stakeholders. TOP |
| Question: Will
Delta become a low-cost carrier like Southwest or JetBlue? |
| Answer: We can learn a great deal from the
recent successes that some low-cost carriers have enjoyed, and Delta must compete
effectively with low-cost carriers. However, this does not mean that we must become
identical to those carriers, and we will use the Strategy Review to determine the best
course of action. TOP |
| Question: What
role can Delta employees play in the project? |
| Answer: Through the interview process and
other data-gathering methods, we will be incorporating employee opinions on the key issues
facing Delta and the options that should be evaluated to resolve those issues. Also,
employees can use the feedback tool on Jerry Grinstein's website to pass issues and
options to the project team. The identity of employees who raise issues and options will
remain strictly confidential. TOP |
| Question: How
were the interviewees selected? |
| Answer: The interviewees are representative
of each of the functions within Delta and involve all levels of the company - from
front-line employees to senior leaders. Additionally, interviews are being done with
select individuals outside of the company to get an external perspective on the issues
facing Delta and the airline industry. TOP |
| Question: Can
I participate in an interview? |
| Answer: Unfortunately, the number of
interviews is limited due to the time constraints of the project and the large number of
Delta employees. However, employees can use the feedback tool on Jerry Grinstein's website
to pass issues and options to the project team. The identity of employees who raise issues
and options will remain strictly confidential. TOP |
| Question: Why
are we interviewing people outside of the company? |
| Answer: Interviews are being done with a few
select individuals external to Delta because of their broad industry knowledge, their
recognized expertise in certain areas, and the valuable insight that external parties can
give to a company or industry. TOP |
| Question: What
people outside of Delta are being interviewed? |
| Answer: External interviews will be conducted
with individuals from various backgrounds including Wall Street analysts, Delta customers,
and Delta suppliers. TOP |
| Question: If
Wall Street analysts are interviewed, won't they skew the project towards shareowners? |
| Answer: While Wall Street analysts may view
the industry from the perspective of shareholders, the interview list is broad and varied
to prevent a singular focus from overriding the results. TOP |
| Question: Will
the results of the interviews be available for review? |
| Answer: No. Interview results and employee
input are strictly confidential and will be used only to identify the key issues Delta is
facing and the potential options we have to resolve them. TOP |
| Question: What
will be done after the interviews have been completed in March? |
| Answer: A team of approximately 20 Delta
leaders from throughout the company will spend several days reviewing a summary of
findings from the interviews. They will be responsible for deciding on the five or six
most important issues facing Delta and the options for addressing the issues. The options
will then be evaluated further during Phase 2 of the project. TOP |
| Question: What
does Phase 2 include? |
| Answer: Phase 2 includes the evaluation of
options, including data-gathering and analysis. The leadership team will select the best
options, combine them into a coherent, whole strategy and then present its recommendation
to Jerry Grinstein. The goal is to define a comprehensive, realistic strategy that fully
addresses the business environment. TOP |
| Question: Will
we be able to see the strategy recommendation made at the completion of the review this
summer? |
| Answer: For competitive reasons, the overall
strategy will not be made public. Information about specific parts of the strategy will be
shared with employees and others as it is appropriate. TOP |
