Delta's Bankrupt Thinking

Last week's BusinessWeek includes an in-depth look at Delta Airlines and its struggles to redefine its business amidst bankruptcy and a hostile takeover attempt by U.S. Air.  Its management team, led by CEO Gerald Grinstein, seems to be making some progress. 

However I question whether their strategy is going in the right direction, mainly because the moves seem to be focused on everything BUT the number one key to success in any business: customer service. 

Most of the moves to improve seem to involve things like cutting back fares as well as charging for meals and upgrades.  Perhaps most frustrating, and telling of Delta's approach, is this quote from BusinessWeek:

"Partly to tamper with the on-time performance of rival JetBlue Airways Corp., [Delta] added slower Dash-8 turboprop planes at LaGuardia Airport in New York to time slots just ahead of JetBlue planes.'"

Think about this for a moment...Delta is fighting for survival by using dirty tactics to fight its rivals.  The loser in such tactics?  Maybe JetBlue...but surely Delta's own customers - who get to "enjoy" a slower flight on noisier planes.  It is absurd to me that such a tactic would even be considered by a company that is attempting to re-make itself.  Obviously Delta remains mired in a mindset that frames customers as mindless sheep lucky to just get to their final destinations.

At the end of the day, the challenges that all airlines face is leading to improvement.  Fares on average continue to be lower each decade, and many new routes have opened up.  Best of all, the winning airlines with the highest market capitalization are those with the best customer service.  Whether it is the quick turnaround and fun nature of Southwest, or the leather seats with personal TVs of JetBlue, this challenge is leading to improvement for us fliers.

As a Silver Medallion member (only because I live in Cincinnati, where the company has an effective monopoly on flights), I sure hope Delta wakes up to the need to re-focus on customer service.  Otherwise, bankruptcy will be permanent.

(UPDATE: I notice from my traffic reports that this post is getting a lot of hits from a Flight Attendant message board. Unfortunately, this board costs $15 bucks to join.  I can cough it up, but I wish that the flight attendant readers out there would post comments in this space as well for all to see.)

Comments

[Susan]

You might be interested in the remarks made by Delta's director of marketing at this week's iMedia Agency Summit. Here's one of his quotes: "We need the agencies to bring new life to Delta. It's all about loyalty and treating the customer well while they travel and while they research about traveling." Sounds a lot different than what's captured in the BusinessWeek article you reference. Lip service? Or is he leaving it to the agencies to successfully overcome Delta's challenges?

See http://www.imediaconnection.com/content/12666.asp for the whole article.