Delta CEO: Change Is Here to Stay

Such a program can help win back the trust of customers who soured on complex fare structures, Grinstein suggested.

The airline also is trying to improve customer trust by simplifying aspects of its SkyMiles frequent-flier program, Grinstein said. In changes announced Wednesday, the airline will increase miles awarded on deeply discounted economy fares and lower the threshold for obtaining Platinum Medallion status to 75,000 miles from 100,000. The airline will also lower the fee it charges when customers change their tickets to $50 from $100.

One move Delta might consider as it continues to restructure is the sale of its Atlantic Southeast Airlines and Comair subsidiaries, Grinstein suggested. In response to a question, the executive said that while the two connection carriers were strategically valuable to Delta, it was management's job to take a look at which assets are "more valuable in others' hands."

The network carriers that have so far avoided bankruptcy face a competitive threat from United Airlines' parent UAL(UALAQ.OB), should United succeed in its efforts to terminate its employee pension plans and emerge from Chapter 11 bankruptcy protection, Grinstein also said.

By passing on its pension obligations to the Pension Benefit Guaranty Corp., United would free itself from costs that other carriers would still bear, he noted.

In such a scenario, American Airlines' parent AMR (AMR), Continental (CAL), Delta and Northwest (NWAC) would have no choice but to go to Congress and work out a deal with lawmakers to spread their pension payments over a longer period of time. Delta has already started talks on Capitol Hill to address the pension issue. Such a re-jiggering of pension payments would save taxpayers having to pick up the tab should the network carriers all turn their pension obligations over to the federal government.

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