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 27, 2009
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
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.
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.
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.
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
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
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