Transforming the fundamentals of an airline
Lucio Petroccione Jr. - Principal
Transportation & Logistics Practice
Decision Strategies, Inc.
Lpetroccione@decisionstrategies.com
404.918.7937
May 07, 2007
About the author
Lucio Petroccione Jr. is a seasoned airline executive with over twenty years of industry experience. His career includes executive positions with Pan Am World Airways and Delta Air Lines. Lucio has had extensive experience in the critical areas of Strategic Planning, Business Development, Marketing, Network & Schedule Development, Airport Customer Service, Operations Management and Technology Development.
In 2005, Lucio was the architect and led the corporate implementation of the largest major redesign of Delta 's Airline Network in its history Operation Clockwork. It was also the largest Network and Operational redesign in aviation history.
Lucio is currently the Principal for Decision Strategies ' Transportation and Logistics group responsible for leading a wide range of major consulting assignments in a variety of industries.
This paper is printed with the approval of Delta Air Lines.
Executive Summary
Delta implemented the largest airline network restructuring in the history of aviation called Operation Clockwork. The majority of the airline 's revenue generating capacity was moved around in one night. Gerald Grinstein, Delta 's CEO, shared his perspective at the annual shareholders meeting in Atlanta on May 19, 2005. "If you have to put your finger on one thing that could fundamentally change the direction of this airline, it is Operation Clockwork." This transformation set the stage for a new business model to achieve the highest possible efficiency and lowest possible cost for the airline. It started a major transformation from a legacy carrier with its high cost structure to a business model that can compete and win in today 's battlefield.
Background
A decade-long