Restructuring / Turnaround Strategies Case Study

Delta Air Lines Inc: Restructuring Strategies

Abstract:
Delta Air Lines, one of the largest airlines in the world, with a vast domestic and international network is known for its safe and reliable transportation. The September 11, 2001 terrorist attack on New York's World Trade Centre was a severe blow to the entire airline industry, pushing many companies to the verge of bankruptcy. Delta was one such company which was severely affected, incurring losses for three subsequent years - 2001, 2002 and 2003. The company was on the verge of filing for Chapter 11 bankruptcy protection in 2004. To save the struggling airline, the company's new CEO, Gerald Grinstein formulated 'Delta solution'. But the implementation of the solution depends on the cost concessions to be offered by the Pilot Association and a host of other factors.

Pedagogical Objectives:

• To discuss the restructuring strategies formulated by the CEO to save the company and its future that is dangling between bankruptcy and transformation.

Keywords : Delta Air Lines; Gerald Grinstein; CE Woolman; 9/11 attack on New York's World Trade Centre; Restructuring strategies; Delta solution; Pilot concessions; Restructuring / Turnaround Strategies Case Study; Delta - ACES; Transformation plan; Chapter 11 bankruptcy protection; Profit Improvement Initiatives (PII); Airline industry; Strategic cornerstones; Hub and spoke system; The Airlines Pilot Association