Company Watch - Delta Air Lines

AirGuide Business, July 7, 2008

7/7/2008

Delta Air Lines flew 11.69 billion system RPMs in June, up 0.2% year-over-year, against a 0.7% rise in ASMs to 13.68 billion. Load factor dropped 0.5 point to 85.4%. 7/4/2008

Delta Air Lines will add fuel surcharges to SkyMiles award tickets effective Aug. 15 amounting to $25 on flights within the US and between the US and Canada and $50 on flights from the US and Canada to all international destinations. Delta called it a "difficult but essential decision in the face of record-high fuel costs" and said it "hope[d] this is temporary." 6/30/2008

Delta Air Lines and ExpressJet said on Thursday they had ended the agreement under which ExpressJet provided Delta with some regional flights. ExpressJet Delta Connection, chiefly operating out of Los Angeles and Salt Lake City, will cease by September 1, the airlines said. ExpressJet operates 23 Embraer ERJ-145 aircraft for Delta, and will keep those aircraft after September 1. Delta said it plans to award a portion of the routes ExpressJet flies to another, unnamed carrier. Delta, which is pruning its network as fuel hits record highs, is also planning to terminate similar regional flying contracts with Pinnacle Airlines and a unit of Mesa Air. Both Pinnacle and Mesa are protesting Delta's decision. 7/3/2008

Travelers flying out of Los Angeles International Airport who are booked on Delta Air Lines will soon have the option of enrolling in a program designed to move them more quickly through security lines. The Clear program will open a priority line for Delta travelers later this month. 7/3/2008

Delta Air Lines and Northwest Airlines employees are urging lawmakers to regulate speculation in the oil markets. The employees have sent nearly 10,000 e-mails to lawmakers through a Web site created by Delta. The carriers plan to ask customers to join the effort. 7/3/2008

Delta Air Lines and Northwest Airlines pilots, whose leaders reached a tentative agreement on a joint contract last week with Delta management, will enter into a period of "good faith" negotiations over details of seniority list integration and agreed to enter into binding arbitration by year end if differences still remain. Minneapolis's Star Tribune reported that the tentative joint contract would give Delta pilots a 5% pay raise next year and annual increases of 4% through 2012, with NWA pilots receiving larger raises to bring their pay to parity with their better-compensated DL counterparts. The DL Air Line Pilots Assn. MEC has approved the tentative contract and the NWA ALPA MEC reportedly will vote on it imminently. Pilots from both carriers then would be required to ratify it. 6/30/2008

Delta air Lines last month told regional partner Pinnacle Airlines that the capacity purchase agreement the two signed in April 2007 will be terminated on July 31, claiming that the Memphis-based airline has failed to meet ontime performance standards. In April Delta announced it would end its agreement with Mesa Air Group subsidiary Freedom Airlines, which operates 34 ERJ-145s on Delta Connection flights. But Mesa won a preliminary US court injunction in May that prevented Delta from pulling the plug. ExpressJet, meanwhile, last month signed an expansive new seven-year capacity purchase agreement with Continental Airlines that will see it operate a minimum of 205 aircraft for Continental in the first year of the deal that kicked in last week and a minimum of 190 in following years. 7/4/2008

Travel Impressions on July 1 begins management and operation of Delta Vacations[sup.1] leisure travel brand and, to celebrate, itis offering travel agents up to 15 percent commission plus American Express Gift Cheque bonuses up to $75 per booking. Through the "Delta Vacations Summer Sensations" booking bonus, travel agents will receive American Express Gift Cheques in the amounts of $25 (three to four nights), $50 (five to six nights) and $75 (seven nights or longer). The booking bonus is valid on new reservations only that include air on Delta Air Lines made between July 1 and September 30, for travel through December 15. Redemption forms can be found at www.deltavacations.com/travelagent. There is no limit on the number of trips that can be booked. 6/30/2008

Delta Vacations is marking the beginning of its new management relationship with Travel Impressions by partnering with SuperClubs to offer savings of up to $100 at participating resorts. Clients who book four- or five-night packages, double occupancy, will get $50 off the total booking. Clients who book six nights or more, double, will receive $100 off the total booking. This offer is valid on all room categories for bookings made July 1 to September 30, for travel July 2 to December 15. The offer is valid for both land-only and air-inclusive new bookings. Certain blackout, weekend and holiday peak surcharges apply, Delta Vacations says. As an added incentive, Delta Vacations is offering travel agents up to 15 percent commission plus American Express Gift Cheque bonuses up to $75 per booking through Delta Vacations Summer Sensations. 7/2/2008