No "Honeymoon" For New CEO
In one sense, Richard Anderson was
blessed to come onboard as CEO of Delta Air Lines at just the right
time -- immediately after the Atlanta-based carrier, then led by
Gerald Grinstein, successfully negotiated the pitfalls of Chapter
11 bankruptcy, and emerged leaner on the other side.
But Anderson (right) -- who also held the CEO title at Northwest
Airlines, during one of the most tortuous periods in that carrier's
history -- didn't spend much time resting on his predecessor's
laurels. In the five months since he took the helm
at Delta, he's turned the industry on its ear by
actively seeking out a merger with either Northwest or United
Airlines, reports The Atlanta Journal Constitution.
Those parties will need to tread very carefully, for such a deal
to occur. The goal is to create a Delta-fronted super-airline,
possibly the world's largest carrier... while also steering clear
of roadblocks posed by the Department of Transportation, which
tends to frown on any union that would suggest a monopoly. For that
reason -- and others -- many feel a Delta-Northwest merger is more
likely, over a deal with larger United.
It's worth noting no one involved with those talks has publicly
confirmed a merger is in the works. Analysts and pundits alike
agree it's a sure thing, though, and boldly note Anderson and other
Delta executives have been working 14-hour days to speed a merger
through.
What's less certain is whether those talks will bear fruit...
and some officials at Delta fear a hastily cobbled-together deal
could fall through. Despite the uncertainty, however, some analysts
think a Delta-Northwest merger could be announced in the very-near
future.
Anyone expecting short-term financial gains from such a union,
however, should prepare to wait things out awhile.
"If Delta and Northwest merge, we will not even recognize the
new airline in three years," said airline consultant Terry
Trippler, who adds he's a friend of Anderson's but stresses he has
not discussed a potential merger with him. "It will be a lean, mean
flying machine and a force to be reckoned with. Everybody in the
business will be playing catch-up to Delta."
Some would say it's ironic Delta is spearheading a merger now...
just over one year after the airline, led by Grinstein, fought off
a hostile takeover bid by US Airways. As ANN reported, creditors
shot down that deal, after hearing protests from Delta employees
and managers, and politicians. They may be kicking themselves now,
though... as the current value of Delta is roughly half of US
Airway's final $10 billion offer.
A combined Delta-Northwest would have a market value of about
$8.5 billion, according to the AJC, based on Friday closing
prices.
Just as Grinstein managed to gain loyalty from Delta workers, by
showing solidarity with them against the US Airways takeover,
Anderson has managed to attract support for a decidedly no-nonsense
management style. A former Texas prosecutor, Anderson issued a memo
to his senior staff shortly after becoming CEO, stressing his
beliefs. Under a section called "Face Reality," Anderson bluntly
wrote "Speed Wins. Be decisive and do not delay. Speed in execution
is the difference between success and failure."
Anderson is viewed as a shrewd operator by those who have dealt
with him before. Mark McClain, a veteran pilot who dealt with
Anderson on several occasions as head of the Northwest branch of
the Air Line Pilots Association, says the CEO may present an
easy-going facade... but watch out.

"I won't say he'll smoke one by you intentionally, but you
better know what you're doing if you negotiate with him," McClain
said in an interview last year. "He's all business beneath that
affable exterior. He'll do what's necessary."
Anderson's disarming style has also impressed some of Delta's
old-line workers. Tony Charaf, the airline's senior VP for tech
operations, related a story to the paper about Anderson's recent
visit to an engine shop... not always a venue corporate types are
comfortable in, or especially familiar with.
"When I walked by I said, 'This is a [Pratt & Whitney] 2037
that goes on our 757's,' and he said, 'I know that. Are you still
having any problems with the gearbox?'" Charaf said. "I was
amazed."