Mike, DAL has had a news item that's caused this weakness - WSJ
so the issue is to game how big of a deal is this with his kids, will he lose his job. and does this really have any medium to long-term impact. I'd bet that DAL rallies today.
He got DAl warrents on PCLN that made DAL twice as much money as their net income last year.... he's probably not going anywhere.
Michelle H should ask him for PCLN trading tips -g-
April 30, 1999
Delta Shares Fall 5.4% on Concern
That Top Executive May Lose Job
By MARTHA BRANNIGAN
Staff Reporter of THE WALL STREET JOURNAL
ATLANTA -- Shares of Delta Air Lines fell sharply as an embarrassing
flap involving its chief financial officer spilled into concern on Wall Street
that he might lose his job.
Even though the company denied that the job of Warren C. Jenson was in
jeopardy, Delta's shares fell $3.5625, or 5.4%, to $61.9375 in New York
Stock Exchange composite trading. Although some other airline stocks
also fell Thursday, Delta's decline was much steeper, and analysts said that
reflected investors' concern over Mr. Jenson.
Leo F. Mullin, Delta's chief executive officer, said Thursday afternoon
through a company spokesman that "categorically, there is nothing to the
rumors." Mr. Jenson couldn't be reached for comment.
Mr. Jenson, who is 42 years old and joined Delta in March 1998 as part
of Mr. Mullin's new management team, has been in the hot seat in recent
weeks. On March 4, a Delta flight from Atlanta to Denver was delayed for
24 minutes as three of Mr. Jenson's children, who were traveling on free
company passes, and their young friend, who was booked in coach, were
escorted on board the plane and placed in first class. They bumped several
revenue passengers to economy class, a Delta spokesman confirmed.
Those passengers were reimbursed for the downgrade, Delta said. In turn,
Mr. Jenson has reimbursed the airline more than $1,000 for its costs.
"He has publicly apologized to Delta employees and taken responsibility,"
said Bill Berry, a Delta spokesman. "He stood up [Thursday] morning in
front of the leadership conference of Delta executives and said, 'Hey guys,
I just want to say it one more time. I'm sorry.' " The meeting was a regular
get-together of top executives.
The incident was posted on a Delta pilots' union Web site
(www.dalpa.com/) and reported in the Atlanta Journal-Constitution on
April 17.
Last Friday, Mr. Jenson issued a letter of apology to Delta employees
after a meeting over the incident with Mr. Mullin, Delta's chief executive.
He also surrendered his airline pass privileges for six months.
"I take complete responsibility for what happened. The blame goes no
further," Mr. Jenson said in the memo addressed to "My Delta
Colleagues." Mr. Jenson wasn't at the gate or involved in the delay of the
flight or the upgrade.
Mr. Jenson, who was the chief financial officer of the NBC unit of General
Electric Co. before joining Delta, has emerged as a key member of the
Delta management team. Wall Street analysts like his approach to
managing the finances of the company, which generates revenue of more
than $14 billion a year. He was one of the people behind Delta's decision
to obtain a stock warrant in priceline.com (www.priceline.com), an online
ticketing service.
The warrant, which will likely be exercisable for conversion into common
stock within a year, is valued at nearly $2.6 billion to Delta -- or more than
twice what Delta earned in net income in the last fiscal year. "He's an asset
maximizer par excellance," said Kevin Murphy, an analyst with Morgan
Stanley in New York.
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