NYTimes.com Article: Delta Moves to Speed Check-In

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Delta Moves to Speed Check-In

February 6, 2003
By SUSAN STELLIN






Seeking to eliminate at least one of the lines passengers
have to endure at the airport, Delta Air Lines announced a
plan yesterday to modify its procedures at 81 airports in
hopes of ensuring that most customers do not have to wait
more than two minutes to check in, even at peak times.

Delta plans to spend up to $30 million this year to
redesign its airport lobbies, adding more than 400
self-service check-in machines to the 400 it now has and
reassigning customer service agents to roles directing
passengers to the fastest check-in alternative and helping
those who need additional assistance.

Delta also plans to install phone banks in airport lobbies
that will connect customers who have complicated requests
to telephone reservations agents, who the airline says can
typically handle ticketing changes much faster than agents
at the airport. Customers who use the phones will be able
to obtain boarding passes from a printer near the phone
bank.

"The whole airport will look dramatically different than it
does today," said Rob Maruster, director of airport
strategy and service for Delta, which has been testing its
lobby concept for the last several months at LaGuardia
Airport in New York.

The initiative was first reported yesterday in USA Today.
In a sense, Delta is playing catch-up with some
competitors, which have already made a big push to install
self-service technology. Continental Airlines, for
instance, currently has 683 automated check-in machines in
113 airports, and last year more than 60 percent of its
domestic passengers took advantage of this option.

Other airlines at the forefront of this trend include
Northwest, which has 643 self-service check-in units in 145
airports; American, with 613 machines in 77 airports, and
Alaska Airlines, with 379 machines at 74 airports. All
three carriers report that about 40 percent of their fliers
take advantage of self-service check-in, compared with 25
percent for Delta, which aims to increase that to 50
percent by year's end.

In addition to the self-service check-in machines at
airports, Delta, Northwest, American, Alaska and US Airways
also allow passengers to check in online and to print
boarding passes from a home or office computer, in some
cases up to 30 hours before a flight. That option has been
slower to catch on with travelers, though several airlines
have begun promoting Web check-in through advertising
campaigns.

Across the industry, the push toward self-service is being
encouraged by a number of factors, not least the need to
cut costs in hard economic times. A Delta spokesman, John
Kennedy, acknowledged that the airport changes were part of
plans to reduce costs $2.5 billion by 2005. Delta has also
announced that it will eliminate 7,000 to 8,000 jobs
throughout the company, and Mr. Kennedy said, "Certainly,
these initiatives have taken into consideration that
overall head count."

Although these changes may suggest less personal attention
at the airport, so far there does not seem to be much
objection from customers, perhaps because the technology
offers the prospect of a faster check-in process at a time
when security procedures are taking more time. And with the
new Transportation Security Administration increasingly
requiring passengers to have boarding passes, not just
e-ticket receipts, before passing through security, the
airlines have moved to provide self-service alternatives to
fliers.

Still, airlines stress that customer service agents are not
disappearing and that passengers who want more attention
can find it. "Rather than a traditional ticket agent
waiting for a customer to come to them, you'll see more
employees in front of the counter taking a more proactive
role before the customer even tries to get in a line," said
Richard Cordell, Delta's senior vice president for airport
customer service.

Executive Pay Cuts

ATLANTA, Feb. 5 (Bloomberg News) - Delta will cut pay 8
percent for most executives and 10 percent for its chief
executive, Leo F. Mullin, and its president, Frederick W.
Reid, on March 1, the company said in a memo to United
States employees.

Delta may also lower employee wages to be competitive with
carriers that have filed for bankruptcy protection, Mr.
Mullin said today at a Goldman, Sachs transportation
conference. The memo, sent on Tuesday, said pay cuts were
not being considered this year for nonunion workers.

Mr. Mullin said wage rates would need to be competitive
with those at United Airlines and US Airways, which are
reorganizing under bankruptcy protection. "Delta cannot be
a high-wage payer vis-à-vis other airlines," Mr. Mullin
said at the conference, "and expect also to survive outside
of bankruptcy so there will be some further work on that."

http://www.nytimes.com/2003/02/06/business/06FLY.html?ex=1045540187&ei=1&en=9959cd99297cb35c



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