Chicagoan to head Delta // Airline names Unicom exec as president, CEO

Reaching into Chicago's corporate circles for a new leader, DeltaAir Lines Inc. on Friday named Leo Mullin its president and chiefexecutive officer.

Mullin, formerly vice chairman of Unicom Corp. and one ofChicago's most active executives in charitable and civic work, takesover the Atlanta-based airline immediately. He succeeds RonaldAllen, who retired July 31 as both chairman and chief executiveofficer after the board would not renew his contract.

In an interview, Mullin, 54, said his most immediate tasks areto rebuild employee morale and raise Delta's customer satisfactionratings, both of which suffered after years of cost-cutting. He alsosaid he may consider establishing a hub for Delta at O'Hare Airport,where United and American dominate."This is really a good company that has had a tough go of it forthe last four or five years, but it's come out of it in strongshape," Mullin said. After years of losses, Delta returned toprofitability in 1996 and for its fiscal year ended June 30 reportedrecord net income of $854 million.Mullin said, however, that "the best companies" perform as wellin customer service as on the balance sheet. He also said he willtry to get Delta into new markets, especially in Asia and LatinAmerica.His hiring marks the first time Delta, the nation's No. 3airline, has gone outside the company to get its top officer.Succeeding Allen as Delta's chairman is Gerald Grinstein, 65, amember of Delta's board. He was chief executive officer of WesternAirlines, which Delta acquired in 1987, and also was chairman ofBurlington Northern Santa Fe Corp., a railroad.Grinstein called Mullin a "strategic and proven leader" inservice industries."He's a team builder and that fits perfectly at Delta,"Grinstein said.Mullin said he would look to Grinstein and other Delta veteransfor help in learning the airline business. His last transportationjob was a five-year stint through 1981 as a senior vice president ofConrail Inc.For 14 years, Mullin worked for First Chicago Corp. in severalroles, including chairman of its American National Bank subsidiary.He resigned in an executive shuffle when First Chicago merged withthe NBD banks in 1995.At the time, First Chicago did not disclose the size of Mullin'sseverance package. His salary at Delta won't be known until thecompany makes its regulatory filings next year, but Allen receivedmore than $1 million in 1996.Mullin's move to Atlanta also means he will relinquish hisvarious civic roles here. He is vice chairman of the Chicago UrbanLeague and the Chicagoland Chamber of Commerce, and a board member ofthe Field Museum of Natural History, Northwestern University,Children's Memorial Hospital and the Metropolitan Planning Council."I feel a deep, deep regret on leaving Chicago," he said. "Inmany respects, it is the finest American city."At Unicom, the parent of Commonwealth Edison, Mullin was incharge of strategy and efforts to expand in unregulated businesses.Unicom Chairman James O'Connor lauded his accomplishments,commenting, "Atlanta is gaining not only a great businessman, but agreat public citizen."