Delta Air Lines, the No. 3 U.S. carrier, on Friday said Frederick Reid, its president, will leave in April to head Virgin Group's low-fare U.S. domestic venture.
The move had long been rumored in U.S. airline circles, especially after Reid was passed over for the chief executive post at Delta when Leo Mullin resigned.
Reid — with a long history in the industry and vast knowledge of networks and other competitive issues — will become chief executive of a new U.S. domestic low-fare airline Virgin plans to launch early next year under the helm of Richard Branson.
Reid has held various management positions in the United States and Europe, at Pan American World Airways, American Airlines, Lufthansa Airlines and Delta Air Lines.
"Fred will best position the airline to succeed in a competitive but poorly served market," Frances Farrow, chief executive of Virgin USA, Virgin Group's business development unit, said in a statement.
Branson is hunting for U.S. investors to buy 51 percent of his planned airline, in line with U.S. limits on foreign ownership.
The Virgin Group has low-fare carriers Virgin Express in Europe and Virgin Blue in Australia as well as full-service carrier Virgin Atlantic, which flies long routes.
Delta's current CEO, Gerald Grinstein, said he would fill Reid's position internally and in the meantime he will handle those responsibilities personally.
"Looking ahead, Delta has great talent and a deep bench, which we will use to fill in behind Fred," Grinstein said.
Reid had been heading up negotiations with pilots at Delta Air Lines, with little success. Pilots have yet to reach a concessionary agreement to help lower Delta's cost in line with major competitors.
