Delta CEO speaks on helping troubled airline fly to the top

Delta Airlines was in sorry shape when Leo Mullin took over as chief executive officer in 1997. With over $2 billion lost and 15,000 employees fired, customer satisfaction rates plummeted -- as did company morale. Mullin spoke to an audience of more than 60 people yesterday in Steinberg-Dietrich Hall about how he helped Delta regain its status as one of the leading airlines of the world. Although Mullin spent many years working in the railroad and banking industries, he was on the top of the list when Delta needed a new CEO two years ago. "Why me? Why Leo Mullin?" he asked the crowd. "The answer is, 'I'll be damned if I know.'" Modesty aside, the Harvard graduate had a record for turning troubled businesses into success stories. As the head of strategy for Con-Rail in 1976, Mullin pushed to deregulate the railroad industry, keeping Con-Rail in business. Furthermore, he was appointed CEO of First Chicago National Bank after 15 years of challenges. But Mullin's greatest accomplishment came from what he calls "the high point of [his] career," when Delta Airlines moved in one year of Mullin's supervision from 10th place to third place in on-time rates. And its employee satisfaction rate rose from the lowest quartile to the second quartile. To accomplish such goals, Mullin said he worked to raise employee morale through frequent communication. Mullin shared several of his most prized philosophies in business, including risk-taking, contribution, a professional demeanor, team skills and preparation for failure. He also had a few ideas about what not to do. "You don't have to get all As. I certainly didn't," Mullin said. "Don't treat acquaintances as connections and don't only concentrate on money." Mullin's own academic career at Harvard helped prepare him for eventual success, with undergraduate degrees in engineering and applied science developing his analytical sense and an MBA which polished his business skills. After his speech, Mullin answered questions from the audience about topics such as the Passenger's Bill of Rights, pilot unions and deregulation. Wharton freshman Rohan Narayan asked Mullin if it is better to prepare for a CEO position through an engineering degree or an MBA degree. "What about liberal arts?" Mullin shot back. "I think the least useful undergraduate degree is one in business. Harvard forced me to rub my nose in humanities and social sciences and I'm a better person because of it." Much of the audience seemed to be impressed by Mullin's speech. "I love the airline industry," Wharton senior Jeffrey Levine said. "I'm a huge fan and want to own my own airline." The event was part of The Musser-Schoemaker Leadership Lecture Series and was sponsored by the Wharton Transportation Association and the Wharton Undergraduate Division.