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Delta Air Lines CFO grounded
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April 30, 1999: 2:56 p.m. ET
Jenson gives up flying privileges after on-plane debacle, but won't resign
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NEW YORK (CNNfn) - Though Delta Air Lines' Chief Financial Officer Warren C. Jenson is temporarily grounded, he isn't planning on permanently departing the company anytime soon.
Officials of the Atlanta-based airline refuted rumors Friday that Jenson would be forced to leave the company after an embarrassing on-flight incident that saw several Delta passengers moved from first class to coach to accommodate members of Jenson's family.
Jenson has, however, revoked his and his family's flying privileges for the next six months and distributed a letter of apology to Delta employees.
"There is no truth to that rumor at all," Delta spokeswoman Kay Horner said of Jenson's possible departure. "Mr. Jenson was not there at the time, but he has taken full responsibility" for the incident.
Delta's stock takes a nose-dive
Rampant speculation concerning Jenson's departure battered Delta's stock Thursday, when investors shaved more than 5 percent off its value.
Delta (DAL) shares regained some of that ground Friday, climbing 1-1/16 to 63 following the company's promise that Jenson, a favorite of Wall Street analysts, would be retained.
Still, company officials are hoping the incident aboard a March 4 flight from Atlanta to Denver doesn't leave a lasting impression in customers' minds.
Several passengers that were moved on that flight from first class to economy seats to accommodate Jenson's three children and one of their friends have been reimbursed for the downgrade, Horner said. Jenson in turn agreed to pay Delta $1,000 to cover the reimbursement.
Jenson himself wasn't actually aboard the flight, which was delayed 24 minutes waiting for his children to arrive, Horner said. She said the seat switch occurred through "a series of errors that he's taken full responsibility for."
Jenson met with Delta President and CEO Leo F. Mullin shortly after the incident occurred, when he voluntarily revoked his and his family's airline pass privileges for the next six months.
In an open memo to Delta employees and customers, Jenson called the past few weeks "very difficult for me and my family" and promised to "do everything I can not to let this slow us down." 
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Delta Air Lines
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