Posted on: Thursday, July 29, 2004

Delta to close 1 of 3 call centers in India

By Harry R. Weber
Associated Press

ATLANTA — Financially troubled Delta Air Lines Inc. said yesterday it was shuttering one of its three call centers in India, but declined to discuss whether the move was related to a survey asking customers if they would be willing to pay a fee to speak to a U.S-based agent rather than one in India.

The question about the call fee was contained in an online survey sent earlier this summer to select frequent fliers.

Spokeswoman Peggy Estes said the airline has no plans to charge customers who prefer to talk to U.S. representatives. She could not say, however, if it is something Delta might do in the future, or discuss the survey's results.

"In today's environment, we continue to look at all areas of our business," Estes said.

A spokesperson for Sykes Enterprises Inc. of Tampa, Fla., which operates the closing center, did not return a phone call seeking comment.

Also yesterday, Gerald Grinstein, Delta's chief executive, met with employees in a closed-door meeting to discuss some elements of the airline's much-anticipated restructuring plan.

Grinstein told them the overhaul will likely include a simpler fare structure or a loyalty program and higher performance standards and better training for employees. The plan is expected to be submitted to Delta's board in late August.

Delta is seeking to cut costs and raise additional revenue to avoid bankruptcy.

Outsourcing some call center functions has saved Delta about $25 million a year, though 11 other call centers remain in the United States.

Analysts weren't sure what to make of Delta's survey.

"Desperate people do desperate things and this kind of looks like one of those situations," Terry Trippler, an airline industry expert in Minneapolis, said of Delta's fee question. "I don't think this will fly."