October 2009
Neel Shah joined Delta Cargo as vice president in January 2008 and cascading change has followed ever since.
Plucked from United Airlines where he served as the head of sales and marketing, Shah seized the opportunity to “run the entire show” at U.S. rival Delta Air Lines.
After upgrading the sales and marketing organization of United Cargo between 2005 and 2007, Shah moved to Delta’s Atlanta headquarters and his new role to grow its cargo revenues and build brand equity.
What followed were surprises that have rearranged the global airline landscape forever. Three months later, with the global economy humming along, Delta grabbed headlines with its plan to merge with industry stalwart Northwest Airlines. Next up were a huge run-up in the price of fuel and the global financial wreck.
The U.S. government’s approval of the $2.8 billion Northwest deal in October 2008 proved a “game-changer” for Delta and Shah, whose “absolute passion” for the business includes a healthy appetite for change.
Shah calls the pace “fun” and likes the bold moves by the world’s largest airline focused on staying several steps ahead of the competition. Says Shah: “I like to
have my plate overflowing and what I like about Delta is we have a lot on our plate.”
That may be putting it mildly. Just last month, Delta was trying to elbow American Airlines aside to establish a partnership with struggling Japan Air Lines to expand in Asia. A deal would strengthen Delta’s presence at Japan’s Narita airport and position it for growth at Haneda airport, where expansion efforts are
set to increase annual capacity by 40 percent by 2012.
Enthralled by airplanes and air travel since his childhood growing up in the Midwest, Shah says he always wanted to work for an airline. Though his parents
“raised him to take risks” and wanted him to follow his dream, he never thought he would land at an airline. Says Shah: “How many people actually end up
there?”
When Shah shelves his Blackberry, he pours himself into his children’s (aged 13, 9 and 5) activities or picks up a tennis racket. “I’m at work a lot and travel a lot,
so I get a lot of pleasure from being with them.”
Looking ahead, Shah says Delta will grasp opportunities and make needed adjustments when market conditions warrant. Delta is “high on Africa,” just started service to Australia and has been “very successful” with its service from New York’s JFK International Airport to Narita.
The carrier’s move to establish a hub at New York’s La Guardia “is not a big deal for cargo” but does offer one more example that Delta is looking ahead. The carrier’s choice to retire its freighters before the end of the year is another business decision others have yet to follow. “We still have rampant overcapacity,”
Shah says.
While industry officials have seen some positive trends, “no one is confident enough to say they are solid,” he explains. However, the long-term prognosis for the air cargo business is good as the supply chains of all the leading manufacturing companies get more global.
As the business environment toughens, these big global companies are demanding money back and more efficiencies and terms that didn’t exist five years
ago, he says. The combination of technology and these factors “are playing a big role in raising the bar.”
In Shah’s view, Delta has been ahead of the curve by doing the deal with Northwest, announcing capacity cuts in the fourth quarter and into 2010, and idling its freighter fleet. From a volume perspective, Delta’s brass predicts a modest recovery in the fourth quarter.
There is a lot of promise long-term and carriers that can endure the economic storm will come out ahead, Shah says. “But if you can’t do the basic blocking and
tackling, you’ll have trouble going forward.”
Like a good football match, all eyes will watch Delta’s next play. ACW
trish.williams@aircargoworld.com



