Delta Air Lines president and COO Fred Reid on April 1 will leave the company to become CEO of Sir Richard Branson's Virgin-branded low-cost entry in the domestic U.S. market. Current Delta CEO Gerald Grinstein will assume Reid's duties on an interim basis. Delta said additional organizational changes will be announced soon.
The writing has been on the wall for several months. In late November, when Leo Mullin announced plans to relinquish CEO duties, Delta passed over Reid--seen by many as the carrier's CEO-in-waiting--and named longtime board member Grinstein as Mullin's replacement
(BTNonline, Nov. 24, 2003). Reid maintained his role as president and COO, but industry observers speculated his tenure at Delta was nearing an end. Shortly thereafter, press reports began linking Reid to the top job at Virgin USA.
To be fashioned as a low-fare, low-cost carrier, Virgin USA still has not identified its planned base of operations, although speculation is centering on Boston, San Francisco and Washington. Other details also have been thin, including a definitive timeframe for launch--though Virgin USA said it is targeting the first quarter of 2005--fleet type, network and possible codeshare links with existing U.S. carriers.
"Reid will oversee all operational and executive facets of the airline, including its upcoming certification process," Virgin USA said today in a statement. "Fred will best position the airline to succeed in a competitive, but poorly served, market."
Reid joined Delta in 1998 as chief marketing officer and in May 2001 assumed president and COO duties, including oversight of revenue management, route planning, strategic alliances, global sales and marketing, inflight and customer service and product development
(BTN, June 25, 2001). He also has been serving as chairman of Delta Connection, Delta's regional feeder network.
"Fred Reid has been an asset to Delta during his more than six years with us, and we all wish him well in his future endeavors," Grinstein said in a statement this morning.
Prior to his career at Delta, Reid served as president and COO of Lufthansa German Airlines and in various management roles for Pan American World Airways and American Airlines.