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Delta Airlines

Delta Airlines

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Delta Airlines

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  1. “Keep Climbing” Delta Airlines “TOP TECH-FRIENDLY U.S. AIRLINES” -PC World

  2. Overview Headquartered in Atlanta, Delta employs 80,000 employees worldwide and operates a mainline fleet of more than 700 aircraft. Individually serves 313 destinations in 58 countries (93 International, 220 Domestic) With partners, (Air France-KLM, Alitalia, Virgin Australia) Serves 567 destinations in 117 countries. 5,079 Daily flights 160 million passengers a year Bringing in 35.1 Billion dollars in revenue for 2011 $5.1 billion (as of 9/30/2012) Liquidity

  3. Recipient of two Stevie awards for social media—Silver for Communications or PR Campaign/Program of the Year-Social Media Focused: “Ideas In Flight: Powered By TED, Delta & You”; Gold for Video in the Tourism/Travel category: “Behind-The-Scenes: Your Bag's Journey On Delta” from the Annual Business Awards. • Recipient of 12 Executive Travel Magazine Leading Edge Awards for U.S. airlines. Delta products and services received: • GOLD status for “Best Domestic Airline-Airport Lounges,” “Best Flight Experience to Mexico,” “Best Flight Experience to Africa.” • SILVER status for “Best Flight Experience to Caribbean,” “Best Flight Experience to Europe,” “Best Flight Experience to the Middle East.” • BRONZE status for “Best Domestic Airline – Premium Class Service,” “Best Domestic Airline – Frequent Flyer Program,” “Best Domestic Airline,” “Best Flight Experience to Canada,” “Best Flight Experience to Central/South America,” “Best Flight Experience to Asia.” • Recipient of two Freddie Awards for “Best Promotion for Redemption" and "Best Loyalty Credit Card" for Delta SkyMiles credit card from American Express. • Recipient of Travel+Leisure's Social Media in Travel & Tourism Award (SMITTYS) for “Best Single Social Media Promotion for a US Airline” for the “Behind-The-Scenes: Your Bag’s Journey On Delta” video. • Named the “Top Tech-Friendly U.S. Airline” by PCWorld Magazine. • Awarded Gold DC Ad Club’s ADDY® Award for the Delta app, Windows version. • Delta Tech Ops voted “Best Solutions Provider” in the annual OneAero MRO Top Shop Awards. • Ranked No. 1 in Fortune magazine's list of the world's most-admired airlines. • Won the Business Travel News Annual Airline Survey, marking the first time Delta beat all other carriers in the contest's 14-year history. • Named domestic “Airline of the Year” by the readers of Travel Weekly magazine. • Named domestic “Airline of the Year” by Jaunted • Recipient of four Travel Weekly Gold Magellan Awards for “Most Eco-Friendly Green Airline,” “Best Business Class,”  “Best Economy Class” and “Best Marketing Campaign.” • Recipient of six Executive Travel Magazine Leading Edge Awards for U.S. airlines. Delta products and services were named “Best Airport Lounges,” “Best Business-Class Service,” “Best First-Class Service,” “Best Flight Experience to Mexico” and “Best Flight Experience to Central/South America.” Delta Private Jets was named “Best Private Jet Service.” • Recipient of Frequent Traveler Award for “Best Promotion for Redemption” for the elimination of SkyMiles award travel redemption fees. • Delta Private Jets won the “Best Private Jet Company in the Americas” award from Global Traveler Magazine. • Named "Best Airline for Travel Agent Support" and “Top Business Airline” by Recommend Magazine. • Ranked best among U.S.airlines in Latin Trade’s “Best of Travel Awards” and No. 5 overall. • Received a perfect 100 out of 100 score on Human Rights Campaign’s 2011 Corporate Equality Index. • Delta TechOps named the “Best Airframe MRO Provider in the Americas” and the “Best Engine MRO Provider” for 2011 by Aircraft Technology Engineering & Maintenance Magazine.

  4. History • 1924- The Huff Daland Dusters crop-dusting operation which are the roots of Delta. • 1925- Huff Daland are the largest privately owned fleet in the world. • 1928- Keystone Aircraft and Huff Daland merge and is renamed Delta Air Service for the Mississippi Delta region that it served. • 1929- Delta operates first passenger flights. • 1934- Delta receives Air Mail Route 24 from Post Office; resumes passenger service and begins operating as Delta Air Lines. • 1946- Delta starts regularly scheduled cargo service. One millionth passenger boards. • 1953- Chicago and Southern Air Lines merges with Delta. • 1975- First airline to offer its own air express service. • 1987- Western Airlines merges with Delta. • 2008- Delta acquires Northwest Airlines.

  5. CEO & Board Richard H. Anderson Edward Bastian PRESIDENT since 2007 CEO since 2007 Education: University: BS, U. of Houston (1979) Law School: JD, South Texas College of Law (1982) Richard was recognized with the “2010 Airline Strategy Award for Executive Leadership” presented by industry trade magazine “Airline Business.” Education: University: BS, St. Bonaventure University (1979) Ed joined Delta in 1998 as vice president – Finance and Controller and was promoted to senior vice president in 2000.

  6. Sales and Partnerships • As of September 30th, Revenue↑ $ 1,352,000,000 compared to 2011. • Third Qtr 2012: Revenue ↑3% ( one of the strongest in industry) • -Corporate bookings: ↑ 8% • SkyMiles • Partnership with American Express • SkyTeam Alliance • 1,000 destinations in 187 countries

  7. Sales Growth

  8. TAX MANAGEMENT • Delta’s tax credits don’t start expiring until 2022, meaning the company could potentially avoid roughly $6 billion in taxes over the next 10 years. Benefits: • Saving money • Ability to conduct investments

  9. RATIOS Turnover: 23.26 Days: 15.69

  10. PROFICIENCY

  11. PROFICIENCY

  12. RETURN ON INVESTMENT

  13. EPS Growth

  14. TRAVEL BENEFITS • Delta offers to all employees a compensation package with competitive pay, excellent benefits and worldwide travel privileges. • Employees can travel anywhere Delta flies. • Family members are also eligible for free and reduced travel rates. • Individuals eligible for reduced-rate are: • Nondependent children • Travel companion • Family & Friends guest

  15. EMPLOYEE BENEFITS • Health and Wellness: • Medical coverage, dental coverage, vision coverage, life insurance, optional disability benefit, employee assistance program. • Financial: • 401(K) plan • Profit sharing • Credit union membership • Defined Benefits and Defined Contribution Pension Plans • Lifestyle: • Paid vacation, holiday and personal time • Matching gifts to education programs

  16. Risk Factors: Jet Fuel Prices • Operating costs are impacted by changes in price and availability of aircraft fuel. • 36% of costs attributed to jet fuel ($12 Billion) • Projected fuel price: $3.15-3.20 /gallon • Fuel Hedging Activities • Delta acquired the Trainer Oil Refinery in Pennsylvania • Expected to provide up to 80% of jet fuel costs in US operations • Company Target: decrease overall costs by ↓$1,000,000,000

  17. INNOVATIONS • $3 billion dollar investment program • Training programs for employees • Delta Assist- dedicated customer support • Upgrade onboard experience • New York La Guardia airport- new domestic hub • Renovation at New York- JFK Terminal • Targeted to grow annual revenues ↑ 1,000,000,000

  18. “EASY” COMPARISON • Easy Jet • Crew deficit • No cancellation assistance / ticket agents

  19. Graph Analysis

  20. Future Expectations

  21. “I would like DAL if I had to own an airline stock.” Jim Cramer – Mad Money

  22. Jet Fuel Prices

  23. Tax Rate