=20 ---------------------------------------------------------------------- This article was sent to you by someone who found it on SFGate. The original article can be found on SFGate.com here: http://www.sfgate.com/cgi-bin/article.cgi?file=3D/news/archive/2005/01/10/f= inancial2132EST0378.DTL --------------------------------------------------------------------- Monday, January 10, 2005 (AP) Delta CEO defends fare structure overhaul, says more changes to come HARRY R. WEBER, AP Business Writer (01-10) 18:32 PST ATLANTA (AP) -- The chief executive of Delta Air Lines Inc. said Monday the struggling carrier's recent fare restructuring may not be perfect, but it was important to win back the trust of passengers as the company tries to compete with discount rivals. "We knew that we were going to make some mistakes, and we may have alrea= dy made some," CEO Gerald Grinstein told a packed Georgia Chamber of Commerce gathering. In his usually blunt style, Grinstein said the nation's third-largest airline will do whatever it takes to survive, and he noted Delta is not over the hump yet. "I've told you a lot about the changes, there are going to be more," Grinstein said without elaborating. The speech comes amid more cuts at Atlanta-based Delta and the airline's announcement last week that it planned to reduce its most expensive fares by up to half, and eliminate Saturday stay-over requirements for cheaper tickets. Within hours of Delta's announcement, Northwest and US Airways matched t= he changes in some markets where they compete with Delta. Continental and United reacted similarly, while American Airlines mimicked Delta to a larger degree. "Half of Wall Street says that we're the greatest geniuses that ever walked," Grinstein told the 1,500 people gathered at the chamber's annual meeting. "The other half says, `I've never seen such dumbos running an airline before.' In this industry, they could both be right." Whichever side is right, Grinstein said Delta had to do something to try to win back customers who have been siphoned away by the discount carriers over the last several years. "What would happen if Home Depot charged extra for paint that wasn't used on Saturday night?" Grinstein said. "On the other hand, that is exactly what we were doing, which was an irritant." The fare structure overhaul also is part of Delta's strategy to recapture business travelers. "We had lost the trust of our passengers," Grinstein said. "We had to ac= t, and it was clear we had to make some changes." Earlier Monday, Delta talked about the impact of previously announced staffing cuts. In an internal memo, the airline said staffing cuts will mean service changes for passengers on overseas flights. The staffing cuts will be on some of Delta's transoceanic flights. On the 767ER flights, which carry up to 285 passengers, there will be seven flight attendants instead of eight. Transoceanic 777 flights, which have 268-passenger capacities, will carry nine flight attendants instead of 10. However, Delta may add an extra attendant on full flights, the memo states. Delta, which recently cut employee wages and is slashing up to 6,900 jobs in a sweeping turnaround plan aimed at saving the airline, will begin the cuts Jan. 31. The flight attendant cuts referenced in the memo are part of the turnaround plan, which was announced in September after the company posted a second quarter loss of almost $2 billion. The memo also states Delta will eliminate meals for flight crews beginni= ng April 1. On the Net: Delta Air Lines: www.delta.com ---------------------------------------------------------------------- Copyright 2005 AP