Warrior in airport fight has worked for both sides

John Boatright might be the most versatile soldier who has enlisted in the current battle between Atlanta-based Delta Air Lines and Hartsfield-Jackson International Airport.

In just the past six years, Boatright has retired from Delta, presided over major parts of the city-run airport’s multibillion-dollar expansion plan, and now has suddenly become the bare-knuckled heavy for —- of all folks —- Delta, which is trying to pare down that same massive construction initiative as it negotiates a new lease with the airport.

Among other things, Boatright has stymied the airport’s bid to secure bond financing for a proposed $1.68 billion international terminal, and he has not-so-subtly threatened the city in writing that Delta could move some of its flights elsewhere if airport construction costs are not ramped down by $400 million or so.

Boatright’s blunt tactics —- all carried out with a nod from Delta CEO Richard Anderson —- have infuriated some city and airport officials, despite their attempts to make nice in public. The 58-year-old Boatright said his objectives, whether working for Delta or the airport, have not changed.

“My goal has always been to preserve what’s best for Hartsfield-Jackson and its customers and the entire region,” he said in an interview. Key to that, he said, is keeping costs at the airport low, which lowers Delta’s costs and makes the airline more competitive. “We just can’t afford to change course, especially in today’s economic environment.”

Airport officials declined comment about Boatright’s role in its building program.

“I can’t talk because negotiations [with Delta] are ongoing and because John Boatright used to work for me,” said Hartsfield-Jackson general manager Ben DeCosta.

It’s not unusual for employees to move between jobs in government and industry.

For Boatright, “there is no question that knowing somebody helps out,” said Paul Lapides, director of the corporate governance center at Kennesaw State University. “Is it his fault that he has a lot of experience and very valuable information?”

Barring any restriction on his use of the knowledge he gained during his work for the city, “then he’s free to do that,” Lapides said. “But it’s a good lesson” for employers.

Delta’s immediate beef with the city-run airport has focused on the new Maynard Holbrook Jackson Jr. International Terminal —- now in its initial construction phase. Airport officials have applied for federal stimulus money to help finish the project, but don’t expect much help on that front. That means Delta and the city must eventually agree on costs to kick loose the bond money the airport needs to complete the 12-gate facility

But a bigger concern is the overall growth of the so-called capital improvement plan, which Delta believes could eventually double the airline’s per-passenger enplanement cost within a few years.

By Atlanta standards, it is an epic fight. Delta, the world’s biggest carrier, is the airport’s biggest customer. And the airport, the world’s busiest with 90 million passengers last year, is a financial engine for the entire region, generating more than $23 billion for the region’s economy in 2008.

Boatright, currently Delta’s vice president of corporate real estate and author of correspondence on the international terminal and lease negotiations, worked at Delta from 1972 until 2003. He left to take a position as project officer for Hartsfield-Jackson’s $6 billion capital improvement program, under the auspices of Boatright Aviation Consultants Inc.

His work included completing the airport’s fifth runway, but he also was a target after designers of the international terminal were fired and filed suit. The plaintiffs said that airport officials were adding to the project but didn’t want to pay for the additions.

When Boatright was being considered for the airport expansion consulting contract, he came under criticism for drawing more than $220,000 a year in pay, which at the time was higher than DeCosta’s pay and more than twice the mayor’s annual salary. His initial pay approved when he was hired included the city’s standard $176,000 for “Level 3” executives and cash to compensate for benefits.

Boatright also was the only candidate presented for the work, and some council members were concerned about whether Boatright could switch allegiance from Delta to the city. When asked about Boatright’s closeness to Delta at the time, Mayor Shirley Franklin said, “He’s retired.”

After leaving the airport, Boatright joined airport medical clinic developer Americorp Holdings Inc. as chief executive, and in 2007 rejoined Delta. In his current position at Delta, Boatright is responsible for Delta’s properties, design and construction approvals, and development of new properties.

His work at the airport on its capital improvement project could be useful as he negotiates for Delta. While Boatright plays a key role in the negotiations with the airport, Delta CEO Anderson has been the airline’s public face on the issue.

When asked during an earnings conference call in January whether he would like to see changes in the leadership of the airport, Anderson said, “Oh, no, no, not at all.”