Delta’s low-flying image

ATLANTA - Even if Delta Air Lines returns to profitability and wins wage concessions from its pilots to stave off bankruptcy, the nation’s third-largest carrier could have an even bigger obstacle to overcome — its image.

A study ranks the Atlanta-based airline near the bottom in quality among its peers.

Industry observers and some customers say the carrier does not have a clear direction and should focus more on its passengers to compete better with low-fare carriers, such as Atlanta rival AirTran.

In recent months, Delta has taken several steps to improve its image with customers. It introduced a food-for-sale program on some flights and started a redesign of its uniforms for flight attendants, airport agents and other workers.

After getting off an AirTran flight to Atlanta, passenger Ernest Littles said he used to fly Delta but now prefers other carriers. The customer service representative for the New York City Transit Authority cited price, customer service and on-time performance as factors.

“If they’re going to be inconsistent with dealing with the customers, you put yourself in the position of not being certain that you want to deal with a company like that,” said Mr. Littles, who was in Atlanta visiting his sister.

Another passenger, Sam Sidewater, who works in real estate in Boca Raton, Fla., said Delta needs to resolve its money and labor problems. But he said he continues to fly Delta from Florida to Atlanta, as he did to attend the Masters golf tournament, in part because it has more convenient flights than other airlines.

“My bags were here even before I got off,” Mr. Sidewater said of his Delta flight. “No problems. No delays.”

A study released this month by professors at the University of Nebraska and Wichita State University ranked Delta 12th out of 14 airlines in terms of quality. The rankings were based in part on Transportation Department statistics on on-time performance and the number of customer complaints in 2003.

Michael Boyd, a Denver airline industry consultant, said he disagrees with some of the conclusions in the study, but thinks Delta has work to do beyond cutting costs and getting its finances in order.

“What they have is a directional problem,” Mr. Boyd said. “Their prior CEO apparently did not want to tackle the hard problems and did not have a clear grasp of what he wanted the airline to be. I don’t think his forte was in terms of the customer.”

In January, airline industry veteran Gerald Grinstein took over as chief executive from Leo Mullin, who will leave as chairman and officially retire later this month.

David Stempler, president of the Air Travelers Association in Washington, said he doesn’t think the study will affect travelers’ buying decisions. What really matters, he says, is price, schedule and frequent-flier relationships.

On that issue, Mr. Stempler, like many other industry observers, returns to Delta’s need to cut costs.

“In this marketplace, the business model that’s working is the low-fare model,” he said. “If you can provide that in a nice, comfortable environment, then you’re the winner.”

Delta spokeswoman Peggy Estes said the airline doesn’t put much stock in the airline quality study. She said Delta has been working hard to improve.

“We attach far greater importance to the actual monthly DOT performance indicators than we do to an esoteric formula applied to these same statistics by this survey,” Miss Estes said. “For example, in the most significant DOT statistic — on-time — Delta finished higher in the 2003 DOT rankings than all but four of airlines in this survey.”

Delta’s new chief executive officer has toured the country speaking with the company’s pilots as part of its effort to win wage concessions. The airline is seeking a 30 percent pay cut, while the pilots have offered 9 percent and to forgo a pay raise due in May.

Both sides seem firm in their positions, leaving little Delta can do to cut its losses.

The airline, which has lost $3 billion and laid off 16,000 employees in the past three years, is expected to report another huge loss this week when it releases first-quarter earnings. Fitch Ratings last week cut Delta’s credit rating on some of its debt to a lower degree of junk status, citing in part its inability to get wage concessions.

Several pilots interviewed by the Associated Press said the dispute has affected the airline’s image.

“You don’t win a fight by bleeding yourself more,” said one senior Delta pilot who asked not to be identified. “You win the fight by bleeding the other guy more.”

The protracted dispute has caused friction between pilots and other Delta employees, another senior Delta pilot said.

The pilot, who also asked not to be identified, said a Delta airport agent gave him a hard time about checking in an extra bag during a recent flight from Atlanta.

“He made the comment, ’I wish you guys would hurry up and make concessions with the company,’” the pilot said of the airport agent. “I said, ’Well, hey, it’s not up to me.’”

The extra bag, the pilot said, ended up getting sent to Pittsburgh by mistake.