Transportation Industry

Company Watch - Delta Air Lines

AirGuide Business, March 10, 2008

Mar 10, 2008

Delta Air Lines flew 8.47 billion system RPMs in February, a 6.7% increase over the year-ago month. Capacity rose 5.6% to 11.31 billion ASMs and load factor was up 0.8 point to 74.9%. Mar 7, 2008

Delta's international capacity increased from 20% in 2005 to 40% this summer and has a growth target of 50% or more. Delta has also grown revenue per seat mile from 86% in 2005 and 95% in 2007 and expects that to rise to 98% this year. Mar 7, 2008

Strong hubs, international growth keys to Delta's success. International growth and a strong hub structure have transformed Delta Air Lines into the pre-eminent U.S. carrier after decades in the No. 3 position. The airline has kept its customer service consistent by maintaining good relations with its employees. President Ed Bastian has noted that if the airline does not merge with Northwest, it has a strong stand-alone plan in place. Mar 7, 2008

Delta Air Lines on Tuesday began guaranteeing that its lowest airfares will be offered through delta.com. If a traveler finds the same itinerary for $10 less than the price on delta.com by midnight on the same day, the traveler will receive the fare difference and a $100 voucher. Mar 5, 2008

US Pension Benefit Guaranty Corp. sold 12% of its stake in Delta Air Lines for $106.2 million, the Associated Press reported, citing regulatory filings. PBGC reduced its Delta Air stake to 43.6 million shares from 49.5 million shares through 14 separate sales. Mar 5, 2008

Delta Air Lines has started issuing red tags to passengers on international flights as part of a plan to keep track of approved carry-on luggage and maximize overhead compartment space. Mar 3, 2008

Delta Air Lines took delivery of the first of eight 777-200LRs Friday, becoming the first US carrier to add the type to its fleet. Aircraft will enter service March 8 on Atlanta-Los Angeles and will operate ATL-Tokyo Narita the following day. President and CFO Edward Bastian said it was DL's first new delivery from Boeing in six years. Mar 3, 2008

Delta will consider ordering more Boeing 777s, CFO says: Delta Air Lines will decide later this year whether to exercise options that will allow it to buy more Boeing 777s. The airline took delivery of a new 777 on Friday. Chief Financial Officer Ed Bastian noted that the new planes will allow Delta to continue its international expansion. Mar 3, 2008

Delta Air Lines and Northwest Airlines pilots have resumed negotiations over how to merge contracts and seniority during a potential merger, according to media reports. It is unclear if pilot leaders have made any progress during the informal meetings. Previous talks ended about two weeks ago. Mar 6, 2008

Delta Air Lines has a strong stand-alone plan and is not rushing to merge with Northwest Airlines, Delta Chief Financial Officer Ed Bastian said. "We don't feel pushed or hurried into any decision," Bastian said. "If we find the right deal, we'll pursue it." Pilot seniority issues have stalled merger talks between Delta and Northwest, and some industry analysts have said consolidation is on hold for now. Meanwhile, the airline has disbanded a group of outside advisers hired to guide a merger, according to media reports. Reuters (2/29) , Bloomberg (3/1) Mar 3, 2008

Northwest Airlines and Delta Air Lines pilot groups resumed meetings on a proposed merger after a break of nearly two weeks, The Detroit News reported. The airlines last month briefed their pilot groups on details of a potential merger, but leaders of the two carriers' pilots, all of whom are represented by the Air Line Pilots Assn., reached an impasse over combining seniority lists. NWA and DL appear reluctant to move forward with a merger agreement absent the support of pilots. Mar 7, 2008

Pension insurer asks to participate in merger negotiations. The Pension Benefit Guaranty Corp. has requested that Northwest Airlines and Delta Air Lines include it in merger negotiations. PBGC officials said a merger could leave the carriers without sufficient assets to cover their pension plans. A Delta spokesman said the company will maintain its pension plans if it merges with another carrier. Mar 7, 2008

The Pension Benefit Guaranty Corp. has requested that Northwest Airlines and Delta Air Lines include it in merger negotiations. PBGC officials said a merger could leave the carriers without sufficient assets to cover their pension plans. A Delta spokesman said the company will maintain its pension plans if it merges with another carrier. Mar 7, 2008

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