Saturday, June 27, 2009

Final Blog!!!!

The first day that I followed the stock price of Delta Airlines, its stock closes at $5.5 on 5/29/09. After that its stock price has been increasing and then dropped to $5.7 at 6/26/09.

Airlines industry becomes maturity market and fierce competition. After deregulation in 1978, airlines became more profitability by gaining more sales and profits. However, to be competitive in the industry, they need to make huge investment with acquisition and spending large capital in R&D for technology. Customer’s needs have been increasing with anxiety of safety, high quality of services and economic price. Afterward, they have been in severe competition to advance in technology. Also, they decrease the ticket price by using low cost strategy.

Delta Airline is the one who utilize the low cost strategy to be competitive and gaining market share. Delta closed its merger with Northwest Airlines to form the world's largest commercial carrier On October 29, 2008. In February 2009, the airline began consolidating gates and ticket counters at airports where both Delta and Northwest operate. Delta becomes muscular in the airline industry.

Although, there are a lot of barriers to be in this industry, but I believe that there are also many opportunities for growth and expansion in this industry. Travel businesses are growing, so this might support the growth of airline industry. Thus, I still would like to invest and work in this business and this company. Also, I would like to recommend Delta and airline industry to be an example in this class for next semester. There are many benefits and risks that could be good example for strategic analysis.

Saturday, June 20, 2009

Delta integrates international offerings

Delta Air Lines Inc. is integrating its international in-flight service options with the choices aboard its Northwest Airlines subsidiary, the company said Tuesday.

Delta said it would standardize this month the services offered passengers aboard Delta and Northwest international flights.

"June marks another major milestone in our merger with Northwest as we introduce high-quality products on board Delta and Northwest aircraft operating internationally," Joanne Smith, senior vice president of in-flight service, said in a statement. "We continue to bring together the best of both airlines to create one best-in-class experience for customers traveling with us worldwide."

Atlanta-based Delta (NYSE: DAL) said services would be integrated aboard all long-haul international aircraft with BusinessElite cabins (formerly known as "World Business Class" aboard Northwest jets).

BusinessElite passengers on both carriers can choose from meals created by celebrity chef Michelle Bernstein and wines picked by master sommelier Andrea Robinson.

Delta also plans to roll out “amenity kits” by Greek skincare company Korres Natural Products.

Economy passengers will be offered complimentary beer and wine on Delta and Northwest international flights. Liquor and signature mixed drinks by Rande Gerber will be available for $7 each. Economy passengers will also be offered an upgraded hot breakfast on international flights longer than 3,800 miles.

The new international offerings are a continued step in the integration of the two carriers into the world’s largest airlines.

Among the changes customers have seen since Delta’s acquisition of Northwest last October:
-- Integrated service offerings on domestic flights
-- Rebranding of more than 175 stations worldwide
-- Painted more than 80 former Northwest planes in Delta livery
-- Linked Delta’s code to the vast majority of Northwest flights for improved connectivity
-- Linked a new joint venture agreement with Air France/KLM Group
-- Merged frequent flier programs

Alliance will make Delta stronger

Delta Air Lines Inc.’s blockbuster tie-up with Air France/KLM Group will make the collective carriers stronger in the face of powerful economic headwinds, observers say.

The deal, which the airlines say will generate $12 billion in annual revenue collectively, will add connectivity across the Atlantic throughout the partners’ networks, while freeing up significant capital and aircraft the carriers can use elsewhere, airline analysts say.

The trans-Atlantic alliance between the world’s largest carrier (NYSE: DAL) and Europe’s largest airline group will offer more flight frequencies, better scheduling and more competitive fares as the partners coordinate as a single carrier, the carriers have said. The new partnership represents a quarter of all trans-Atlantic air service and Delta CEO Richard Anderson said in a message to employees the carrier would handle 50 percent of trans-Atlantic service.

The pact includes routes between North America and Europe, North America and Africa, Europe and Latin America (where Delta is particularly strong), and the Middle East and India. Delta is also growing in Africa, and is the only U.S.-flagged carrier to fly to the continent.

81 jobs lost with Comair closing

Delta Air Lines Inc. will shutter its Comair subsidiary's maintenance base at Orlando [Florida] International Airport in on Sept. 7, cutting 81 jobs.

The Cincinnati, Ohio-based subsidiary of Delta attributed the future layoffs to “unprecedented financial challenges due to difficult economic times,” according to a June 16 Worker Adjustment and Retraining Notification notice the company filed in Florida.

Aircraft mechanics, engineers, technicians, supervisors and managers lost their jobs, but some employees may be able to exercise ‘bumping rights’ within the Comair system to secure employment, Comair said in its notice.

Comair flies to 70 cities in the U.S. and Canada.

Airlines add fees and some fees on top of fees

With some airlines charging fees on top of their fees, what's next?

As if charging $15 to check a bag weren't enough, two airlines are asking for $5 more beginning this summer if you pay at the check-in counter -- a fee on top of a fee.

Of course, you could always pay your baggage fee from home. The airlines call it the "online discount."

If airlines can get away with that, what's next? Rather than raise fares in the middle of a recession, they're piling on fees to make money -- fees for bags, fees to get through the line faster, even fees for certain seats.

Chicago-based United Airlines alone expects to rake in more than $1 billion this year in fees ranging from baggage to accelerated frequent-flier awards. That's more than 5 percent of its revenue. The most likely new fees are those that some airline, somewhere, has tried. Fees usually originate with one or two airlines, and competitors watch to see whether passengers accept them or revolt. For instance:

-- United and US Airways are hitting passengers up for $5 to pay their baggage fees at the airport instead of online. United implemented the fee June 10, while US Airways will put it into effect July 9.
-- If you want to select an exit row seat on AirTran and enjoy the extra legroom, expect to cough up $20.
-- Allegiant Air, a smaller national discount airline, charges a $13.50 "convenience fee" for online purchases, even though most other carriers encourage purchases direct from their Web site.
-- European discounter Ryanair charges for something everyone has to do if they want to fly: check in. It's 5 euros, or about $6.75, to check in online, double for passengers who pay at the airport. Ryanair plans to eliminate airport check-in desks.
-- Spanish airline Vueling charges a fee to pick a seat. Any seat at all. A "basic" seat behind the wing runs 3 euros. For 30 euros, travelers can choose an aisle or window seat and guarantee that the middle seat will remain empty.

Delta Air Lines Inc. and AirTran Holdings Inc. say they have no plans to tack a fee on to carry-on bags, an idea that would almost certainly annoy passengers just getting used to paying for checked baggage.

It would also put airline workers in the awkward position of deciding whether that bag on your arm is a big purse, presumably free, or a lumpy suitcase. Already, fees for checked bags have made finding space in the overhead bin tougher.

SunTrust and Delta to Introduce New SkyMiles Check Cards

SunTrust Banks, Inc., and Delta Air Lines today announced consumers and businesses will soon be able to earn Delta miles on all signature-based purchases made with a new SunTrust SkyMiles Check Card, launching June 22. This will be the first time Delta has offered mileage-earning opportunities through a check card, and is the first co-branded check card relationship for SunTrust.

The SunTrust SkyMiles Check Cards meet a growing demand among Delta and SunTrust clients for a check card that earns airline miles. It also reinforces SunTrust's pledge to help clients with responsible financial management through its "Live Solid. Bank Solid" campaign.

"Today, more than ever, consumers are looking for ways to better control their finances and make smart purchasing decisions," said Hugh Gallagher, SunTrust's senior vice president for deposit product management. "The SunTrust SkyMiles Check Card encourages consumers and businesses alike to spend wisely while earning Delta miles. We're very pleased to partner with Delta on this great product."

For every purchase made with an authorized signature, cardholders earn miles that can be redeemed for Award Travel to nearly 400 destinations Delta and its partner airlines serve across the world. There is no mileage-earning cap with a SunTrust SkyMiles Check Card so cardholders can earn unlimited miles. Now in its 28th year, SkyMiles is one of the longest-running and most successful loyalty programs in the travel industry.

"Our SkyMiles members have told us they want a mileage-earning check card, particularly in these challenging economic times," said Jeff Robertson, Delta's vice president of loyalty programs. "SunTrust is a strong banking partner that matches our customer base in the Southeast and Mid-Atlantic. These new cards provide our members with additional options and value while strengthening our overall portfolio of card offerings."

Starting at just $20, the SunTrust SkyMiles Check Card features the lowest annual fees of any competing airline check card rewards program, and offers the convenience and security of a SunTrust Visa Check Card.

Three cards will be available - two for consumers and one for small- to medium-sized businesses:
SkyMiles Classic Check Card - consumers earn one mile for every $2 purchased and 2,500 bonus miles for the first signature purchase. The annual Card fee is $20.
SkyMiles Platinum Check Card - consumers earn one mile for every $1 purchased, 5,000 bonus miles for the first signature purchase and a complimentary Delta Sky Club Day Pass valued at $50. The annual Card fee is $55.
SkyMiles Business Check Card - businesses earn one mile for every $1 purchased, 5,000 bonus miles for the first signature purchase and a complimentary Delta Sky Club Day Pass valued at $50. The annual Card fee is $55.

Beginning June 22, consumers can open SunTrust checking accounts with the new SkyMiles Check Card. Existing SunTrust consumer and business checking clients can also upgrade their existing check cards to the SkyMiles Check Card. For more information on the SunTrust SkyMiles Check Cards, consumers may call 1-877- SUNTRUST to speak with a representative or visit a local SunTrust branch.

Delta Airlines stock closed at 6.07 on 6/19/09

Monday, June 15, 2009

Stock Price

The stock price went down to 6.10 at 6/15/09

Saturday, June 13, 2009

Wi-Fi in the Sky

Wi-Fi in the sky !!!!!!!!!!!!

The airlines try to find new way to generate revenue -- charging between $9.95 and $12.95 per person.

Some people think that Wi-Fi on the airplane is the great idea!!! On the other hand, someone think that it is like the snake on the airplane!!!

Here is the link for video of some opinions about Wi-Fi in the sky.

http://video.forbes.com/fvn/tech/airplane-wi-fi?partner=yahootix

How about you? How do you think about Wi-Fi in the sky? Use it or lose it?

SWOT Analysis

Delta Airline is one of the largest domestic airlines in the United State. Delta provides scheduled air transportation for passengers and cargo throughout the US and around the world. The company strong network infrastructure enables it to gain access to key market as well as enhance the quality of its delivery services. However, the rising fuel prices could have a direct impact on the company's margins.

Here is the SWOT of Delta:

Strengths
Strong operational network
Consistent top line growth
International alliances

Weaknesses
Weak performance of cargo division
Heavy dependence on passenger revenues

Opportunities
Passenger traffic in Asia Pacific
Growing global air freight and logistics
Growth in US airline industry

Threats
Rising aviation fuel prices
Intense competition
Regulatory conditions

Will airlines go bankrupt?

Will airlines follow US automakers into bankruptcy protection?

Auto companies and airlines are both getting hammered by the recession, but while two of the nation's major carmakers went into bankruptcy court protection, the leading U.S. carriers are flying above the carnage -- for now.

Make no mistake, the airlines are in big trouble, with air traffic in a free fall this year. Many business travelers -- the most profitable customers for an airline -- have been grounded. Others have moved from the first-class cabin back to coach.

Leisure travelers have been worried about losing their jobs. To lure nervous vacationers, carriers have slashed summer fares, and experts report some of the cheapest travel prices in years.

All the major U.S. carriers except Southwest lost money last year. The leader of an international airline trade group said last week that worldwide the industry will lose $9 billion this year -- nearly double the loss the organization predicted in March.

Still, no major U.S. airline is in bankruptcy court protection. Compare that with the auto industry, where General Motors Corp. filed for Chapter 11 protection last month, following in the tire tracks of Chrysler, which sought court protection from creditors in April and was taken over by Italy's Fiat Group SpA.

So.. here is the answer why aren't airlines in bankruptcy court protection?
--> because they went through bankruptcy in the last downturn, and they're still benefiting from that.

Delta Air Lines Inc., United parent UAL Corp. and US Airways Group Inc. used the bankruptcy-court process to reduce debt and cut labor costs earlier in this decade. They emerged leaner, with fewer liabilities -- some dumped pension obligations on the federal government -- and with less debt.

Friday, June 12, 2009

Airline passengers could get a 1-2-3 punch

Low ticket prices could be short-lived if fuel prices continue to rise this fall !!!!!!!!!!!!!

Corporate travel and ticket sales of premium seats are down. Overall demand is weak. And fuel prices are rising -- again. The one-two-three punch could be bad news for consumers this fall, as U.S. airlines face pressure to raise fares or cut more capacity to cover their costs.

Executives at several airlines, including Delta, Southwest, US Airways, Continental and American, gave bleak outlooks Thursday during an investor conference in New York, and there was little talk from anyone of a near-term rebound. AirTran offered a bright spot amid the industry woes, as its chief financial officer said the discount carrier expects to have "one of the best years in the company's history."

The rise in unemployment and hits Americans have taken to the value of their homes, coupled with the meltdown in the financial markets, has caused a significant slowdown in air travel. Airlines also have lost business from the swine flu, which has caused some people to cancel travel plans to Mexico.

Atlanta-based Delta Air Lines Inc. projects it will take a $125 million to $150 million revenue hit in the second quarter because of the impact on air travel from the swine flu virus. The quarter ends June 30. The swine flu scare also has hurt Delta sales to customers in Asia, who may be worried about travel because of the SARS outbreak in 2003.

The overall drop in demand has coincided with a recent increase in fuel prices, which means lower sales, one executive said industry passenger revenues have declined nearly 20 percent in the first four months of the year, are meeting higher costs.

Delta President Ed Bastian said that if fuel prices continue to climb into the fall, airlines will be under pressure to raise prices or cut more capacity to cover their costs. Delta has made a decision not to put seats out into the marketplace if we can't recover the cost of that seat.

Delta cutting more capacity

Delta to cut capacity more than expected as declining revenue overtakes merger benefits.

Delta Air Lines Inc. will shave additional capacity later this year as it warns that more than $6 billion in benefits it expected from lower fuel prices, its merger with Northwest Airlines and previous capacity reductions will be overtaken by declining revenues. The reduction in available seats could mean further job cuts at the world's largest airline operator. Delta also said it projects it will take a $125 million to $150 million revenue hit in the second quarter because of the impact on air travel from the swine flu virus. The quarter ends June 30.

Delta executives told employees in a memo Thursday ahead of a presentation at an investor conference in New York that Delta will reduce system capacity by 10 percent this year compared to 2008. That is up from Delta's previous plan to cut system capacity by 6 percent to 8 percent. Delta also will reduce international capacity 15 percent, up from a previous plan to cut it by 10 percent. Delta said capacity reductions will begin in September. Some routes will be suspended, while the number of weekly flights to other destinations will be reduced.

"The additional capacity reductions mean we again must reassess staffing needs," Chief Executive Richard Anderson and President Ed Bastian said in the memo. "While the challenges of the current environment preclude us from making guarantees, our goal remains to avoid any involuntary furloughs of frontline employees."

Delta Airlines stock closed at 6.40 on 6/12/09

Board of Directors

Here is some information about Board of Directors of Delta

Pursuant to the Bylaws adopted effective as of April 30, 2007, Delta's Board of Directors will be elected annually. It is currently comprised of Delta's non-executive chairman, Daniel A. Carp, Delta's CEO, Richard Anderson, and eleven outside directors.

Daniel A. Carp has served as non-executive Chairman of Delta’s Board of Directors since April 30, 2007. He was Chief Executive Officer and Chairman of the Board of Eastman Kodak Company from 2000 to June 2005, and continued to serve as Chairman of the Board until his retirement from the company in December 2005. Mr. Carp was President of Eastman Kodak Company from 1997 to 2003. He is a director of Liz Claiborne, Inc., Norfolk Southern Corporation and Texas Instruments Inc.

Richard H. Anderson has been Chief Executive Officer of Delta since September 1, 2007. He was Executive Vice President of UnitedHealth Group from November 2004 to August 2007. Mr. Anderson was Chief Executive Officer of Northwest Airlines from February 2001 to November 2004. He is a director of Cargill, Inc. and Medtronic, Inc.

The Board of Directors holds regular meetings four times a year, schedules special meetings when required, and regularly meets in executive session without management. The Board and its committees also meet informally from time to time. The Board met 18 times in 2008.

We learned in class from Dr.Busija that the responsibilities of the board of directors are establish and update mission, elect the top management team, establish top management compensation, determine amount and timing of dividends, set broad company policy, and mandate legal and ethical compliance.

Delta's stock price

The stock of Delta Airlines went up to $6.68 closing at 6/11/09

The New Delta "Atlanta Anthem" 2007


http://www.youtube.com/watch?v=HhNW_3AIek0


Here is the Delta commercial in 2007 after exited bankruptcy.

On April 3o, 2007, Delta Airlines emerged from bankruptcy protection after surviving a hostile takeover bid and cutting billions in costs in a 19-month overhaul.

Delta also unveiled a new logo, reminiscent of its logo from the 1970s and 1980s, and a new paint scheme. Delta's bankruptcy exit strategy was vastly different from that of United in that it expanded its way out of bankruptcy, rather than retrenching.
Delta's previous stock was canceled as of Monday, April 30, 2007, and new shares are trading on a "when issued" basis on the New York Stock Exchange. These shares began trading normally on Thursday, May 3, 2007. The starting price was around $20.00 a share, and went up to as high as $23.35. But investors showed little confidence in the stock as the price fell to $19.00 later in the week.
Upon exiting bankruptcy, Delta also announced a 50% increase in operations at Los Angeles International Airport, thus establishing Los Angeles as Delta's second West Coast hub and new potential Asian gateway with a total of 99 daily departures.

Saturday, June 6, 2009

Coach Class Becomes Cattle Class

Many airlines are installing slimmer seats. Passengers given less space than average pig on the way to Baconland!!!!!!!!

They try to install slimmer seats to gain more customers so that their revenues will be boost up.

Follow this new from the link below!!!

http://www.minyanville.com/articles/amr-dal-cal-uaua-jblu-luv/index/a/22963/from/yahoo

Mission Statement

Delta Mission Statement

“Making Delta, carrier of choice for customers through operational excellence, “second mile” service and building emotional connections with the disability community.”

Delta’s Customer Advisory Board on Disability promotes accessibility for all our customers by providing leadership in achieving our sustainable goal: making Delta, carrier of choice for customers with disabilities in all aspects of our business.

Delta Airlines stock closed at 7.02 on 6/5/09

Wednesday, June 3, 2009

Delta Introduction

Delta Air Lines is a United States airline based and headquartered in Atlanta and Georgia. Delta Air Lines is the world’s largest airline. From its hubs in Atlanta, Cincinnati, Detroit, Memphis, Minneapolis-St. Paul, New York-JFK, Salt Lake City, Amsterdam and Tokyo-Narita, Delta, its Northwest subsidiary and Delta Connection carriers offer service to 368 destinations in 66 countries and serve more than 170 million passengers each year.

Delta’s marketing alliances allow customers to earn and redeem either SkyMiles or WorldPerks on more than 16,000 daily flights offered by SkyTeam and other partners. Including the SkyTeam and worldwide codeshare partners, Delta offers flights to 567 worldwide destinations in 112 countries.

On October 29, 2008, Delta closed its merger with Northwest Airlines to form the world's largest commercial carrier. In February 2009, the airline began consolidating gates and ticket counters at airports where both Delta and Northwest operate. The consolidation will be completed by early 2010.

Delta Airlines stock closed at 6.88 on 6/2/09