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Old June 22nd, 2009, 06:32 PM   #481
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Flu virus costs Delta $250 million in revenue

NEW YORK, June 22 (Reuters) - The H1N1 influenza virus cost Delta Air Lines $250 million in revenue, and the world's largest airline has cut capacity during the second quarter in response to the reduced demand, its chief executive said at the company's annual shareholders meeting on Monday.

"The H1N1 virus, we estimate, in both our Latin America and Mexico, and particularly Asian business has impacted revenues by about $250 million," Delta CEO Richard Anderson said. "The steps we are taking have essentially involved capacity because the flu has decreased demand."

Airlines are still grappling with the effect of the virus, formerly known as swine flu, on travel demand. The virus compounded the industry's concerns, which included a sharp falloff in travel demand, particularly from business travelers.

Anderson said Delta had "significantly" reduced capacity in Mexico and Latin America during the second quarter, but expected to add some back during the remainder of the year. Weakness in demand in Asia prompted the Atlanta-based airline to cut capacity there.

Delta shares were down 12 cents, or 2 percent, at $5.95 in early trading on the New York Stock Exchange.
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Old July 10th, 2009, 01:20 PM   #482
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Australia Virgin Blue in deal with Delta Airlines

SYDNEY, July 9 (Reuters) - Australian airline Virgin Blue plans a codesharing tie-up with U.S. carrier Delta Airlines to allow the two carriers to compete better on routes between the U.S., Australia and the South Pacific, Virgin said in Thursday.

In advance of their joint venture, the carriers are moving forward to implement codesharing, frequent flyer program reciprocity and lounge exchange privileges, the Virgin statement said.

The two will file antitrust immunity applications with the U.S. Department of Transportation and with the Australian Competition and Consumer Commission.
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Old July 10th, 2009, 01:28 PM   #483
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Delta faces $375,000 'bump' fine
Airline ignored proper compensation rules
It bypassed volunteers on oversold trips before denying seats to others

297 words
10 July 2009
The Atlanta Journal - Constitution

The U.S. Department of Transportation is fining Delta Air Lines up to $375,000 for improperly handling "bumped" passengers who were denied boarding when flights are oversold.

The DOT said Atlanta-based Delta's actions "constituted unfair and deceptive practices and unfair methods of competition," and ordered the carrier to adhere to regulations.

According to the agency, Delta violated rules by failing to seek volunteers before bumping other passengers on oversold flights; failing to properly compensate bumped passengers; failing to tell those offered travel vouchers how much would have otherwise been due to them in cash; and failing to give bumped passengers a written statement explaining the terms of compensation.

The DOT reached a compromise civil penalty with Delta, including $175,000 due within 30 days. The remaining $200,000 may be credited to Delta if the airline takes steps within 18 months to set up a complaint handling and letter generating system or an automated system to notify customers when they check in at kiosks or online if their flight is oversold, and to ask if they want to volunteer their seat for compensation.

The DOT assessed the fine after reviewing passenger complaints about Delta in 2008.

According to a federal filing, Delta said it has been "working consistently over the past year and a half to improve compliance" with rules on bumping passengers.

Being involuntarily bumped from a flight, while rare, can be one of the most frustrating travel hassles. Generally, involuntarily bumped passengers are entitled to up to $800 of compensation.
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Old July 11th, 2009, 06:36 AM   #484
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Northwest flight attendants want Delta to offer bigger sizes of signature red dress uniform
10 July 2009

ATLANTA (AP) - The union that represents flight attendants who worked for Northwest Airlines before it was bought by Delta Air Lines is crying foul over Delta's failure to offer bigger sizes for its signature red dress uniform designed by Richard Tyler.

When he was hired to create his uniform collection, Tyler said he wanted them to "look sexy and great."

The Northwest chapter of the Association of Flight Attendants-CWA has filed a grievance with the world's largest airline operator, asking it to offer the red dress up to size 28. The union hopes the grievance will go to mediation in August.

The red dress currently is only offered up to size 18, though a Delta spokeswoman said the airline offers a range of outfits in other colors and styles up to size 28 that flight attendants can wear.

Patricia Reller, who handles grievances for the union's executive committee, said Friday that even if there was only one flight attendant who wore a size over 18, that person should be able to wear the stylish red dress.

"I think red is an eye-popping color and it's not subtle, and to me by not offering it in a size over 18, Delta is saying, 'We don't want you wearing that if you are over size 18,'" Reller said. "But the job isn't about being sexy. It's about safety."

Reller said she did not know how many pre-merger Northwest flight attendants want to wear the red dress but need a size bigger than 18.

"If the dress wasn't a tiny size 18, there would be less," Reller said. "It's a very small size 18, so that makes the numbers a lot larger."

Delta spokeswoman Gina Laughlin could not immediately say why the red dress is not available in bigger sizes while other uniform options are. But she said there have been few complaints.

"The majority of pre-merger Northwest flight attendants have given us very positive feedback about the Richard Tyler Collection," Laughlin said.

Delta hired Tyler in 2004 to do a makeover of its gray employee uniforms. Tyler, whose dresses have been worn by stars such as Julia Roberts, Heather Locklear and Jamie Lee Curtis, promised a classier -- and in some cases, sexier -- look for flight attendants, airport agents and other workers.

"I want them to look sexy and great, but you have to keep that classic look as well," Tyler told The Associated Press at the time.

The uniforms -- including white blouses and navy dresses besides the red dress -- debuted in 2006. Atlanta-based Delta acquired Northwest in October 2008. Pre-merger Northwest employees began wearing the Delta uniforms on March 30.

Delta said at the time it announced its plans for the new uniforms that the decision was a "wise investment" that would boost morale among employees and increase the airline's bottom line in the long run.

According to Delta, flight attendants must be able to perform the safety and security functions of their job, including being able to reach and close overhead bins, reach and close any of the aircraft doors and be able to sit on the aircraft jumpseat and fasten the flight attendants seatbelt.

Reller said a flight attendant who wears above a size 18 can do all of those functions well.

"The sizing of our red dress has not been an issue with Delta flight attendants since the program's inception three years ago. This is AFA hype leading up to the election," Laughlin said.

There are roughly 21,000 flight attendants at the combined airline, 14,000 from pre-merger Delta and 7,000 from pre-merger Northwest.

The Northwest workers are represented by a union, while the Delta workers are not. At some point there will be a representation election at which the combined workforce will decide whether it wants to be represented by a union or not. The two groups also must decide on how to integrate their seniority lists.
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Old July 11th, 2009, 06:48 AM   #485
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Quote:
Originally Posted by Paddington View Post
Delta trims down, but Metro international flights increase

http://www.detnews.com/article/20090...20362/1001/biz



Interesting. Although ATL has a large facility I've always wondered about its location as a hub airport. Although it projects well to the Caribbean and to a lesser extent Latin America, it's not well positioned for travel to either Europe or Asia. If you look at the great circles, the Eastern third of the U.S. shows DTW much better positioned for travel to the important Asian and European cities than Atlanta.
What I find interesting is that Detroit seems to have taken to this "Delta" name change without even blinking. No mention that Detroit is the 2nd largest Delta hub only because of the Northwest merger. (unless I missed it in the full article) I don't think many of the planes have even been re-painted yet (?)...times changing fast in the airline industry.
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Old July 12th, 2009, 08:23 AM   #486
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What I find interesting is that Detroit seems to have taken to this "Delta" name change without even blinking.
It makes little difference to Detroit what name is written on the side of the planes. Both NWA and Delta have comparable and probably below average reputations for actual service. Neither NWA nor Delta are based in Detroit. Detroit was never expected to be a "loser" in the deal as was Cincinnati.
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Old July 12th, 2009, 09:24 AM   #487
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But then, I don't think any main-line US carrier has a good reputation for service anyway. I'll probably have to go to the low-cost carriers to change that perception.
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Old July 14th, 2009, 04:58 AM   #488
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Quote:
Originally Posted by Paddington View Post
Delta trims down, but Metro international flights increase

http://www.detnews.com/article/20090...20362/1001/biz



Interesting. Although ATL has a large facility I've always wondered about its location as a hub airport. Although it projects well to the Caribbean and to a lesser extent Latin America, it's not well positioned for travel to either Europe or Asia. If you look at the great circles, the Eastern third of the U.S. shows DTW much better positioned for travel to the important Asian and European cities than Atlanta.
Atlanta is "okay" for flights to Europe, it's no worse than Chicago and significantly better than DFW or Houston. The reason Atlanta is such a huge hub is that Atlanta is located very close to the population center of the eastern half of the US. It's equidistant between Miami and Chicago and is also about midway between New York and Houston.
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Old July 15th, 2009, 07:22 PM   #489
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Delta Air Lines seeking federal subsidies to continue flying into Tupelo airport
15 July 2009

TUPELO, Miss. (AP) - Delta Air Lines Inc. is trying to get a federal subsidy for flights into Tupelo Regional Airport due to a drop in customer demand and a rise in fuel prices.

Tupelo Regional Airport Director Terry Anderson said the procedure can sound more ominous than it is because Atlanta-based Delta will file a "notice of termination" to begin the process of seeking subsidies.

Anderson insists services won't be interrupted. The notice of termination is a strategic move meant to start negotiations.

"I don't like using the word 'termination' because of its connotation that it's the end -- it's not," Anderson said. "Air service will continue in Tupelo."

John Spanjers, president of Delta regional carrier Mesaba Air Lines, wrote in a letter dated Monday that Delta and Mesaba "will take steps to receive a subsidy for continued service" in Tupelo and several other markets around the country.

After getting the notice of termination, the U.S. Department of Transportation will issue a hold-stop order that prevents an airline from stopping service.

A 90-day period of negotiations follows the notice and involves airlines, airports, Congressional officials and local leaders to determine the extent of the air service to be provided.

Those talks may be beneficial to Tupelo, Anderson said.

"In the final analysis, it won't be just the highest bid, but what is the best bid that will provide the citizens the best air service in Northeast Mississippi," he said.

Tupelo Mayor Jack Reed Jr. agreed.

"This can work in our favor," he said. "What this will do is that we'll insist in our negotiations (to provide better service) rather than being in a position to complain or harangue about what we'd like. This will put us right at the table."

Delta currently provides two flights from Tupelo: An early flight to Memphis and a late-morning flight to Atlanta.
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Old July 16th, 2009, 02:24 AM   #490
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Translation: Delta will probably drop one of the two flights.
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Old July 16th, 2009, 02:26 AM   #491
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Quote:
Originally Posted by Rail Claimore View Post
Atlanta is "okay" for flights to Europe, it's no worse than Chicago and significantly better than DFW or Houston. The reason Atlanta is such a huge hub is that Atlanta is located very close to the population center of the eastern half of the US. It's equidistant between Miami and Chicago and is also about midway between New York and Houston.
Well, it's different for you living in Alabama, for which Atlanta happens to be on the way over to Europe. But outside of the South, Atlanta is not so convenient for those connecting, whereas places like New York due to their location are "on the way over" for practically everyone in the U.S. traveling to Europe. For Asia, DTW and Minneapolis are way better positioned for Eastern U.S. flyers than Atlanta. For someone in the Northeastern U.S., Atlanta is a pretty bad hub for pretty much any flight except going to Florida or the Caribbean.

Last edited by Paddington; July 16th, 2009 at 02:39 AM.
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Old July 16th, 2009, 02:51 AM   #492
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Well, it's different for you living in Alabama, for which Atlanta happens to be on the way over to Europe. But outside of the South, Atlanta is not so convenient for those connecting, whereas places like New York due to their location are "on the way over" for practically everyone in the U.S. traveling to Europe. For Asia, DTW and Minneapolis are way better positioned for Eastern U.S. flyers than Atlanta.
I never claimed it was an ideal hub outside of the South for flights to Europe or Asia. But the reason Delta has a lot of service to Europe from Atlanta is because the South includes Florida and Texas, for both of which Atlanta is "on the way" or at the very least, not terribly out of the way.

ATL is probably the best launching point of any major US airport to Africa as well, which probably explains why Delta flies there.

I agree with you that it isn't a good hub for flights to Asia, which is probably why Delta is ending its ATL-PVG service this fall and having those passengers routed through DTW instead. That doesn't matter too much anyway, so long as there is non-stop service to Tokyo and Seoul, both of which mean 1-stop destinations to practically every major city in Asia through Delta's NRT hub or Skyteam partner KAL's hub at ICN.

People say that Atlanta only has a lot of international traffic (6th among US airports) because of Delta's huge hub presence, but I think that's more of a symptom than a cause. Atlanta is a viable international hub alternative to several other cities probably because those cities are already overcrowded with international travelers to certain regions of the world. NY is the main hub to Europe, but its airports are overcrowded. MIA is the main hub to South America and the Caribbean, but its capacity is also limited. ATL probably gets a lot of passengers who would normally fly to these other airports but don't because they don't want to put up with their crowded conditions. Like I said, ATL isn't ideal for flights to Europe or Latin America, but it isn't terribly out of the way for a sizable percentage of the US population.
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Old July 17th, 2009, 04:48 AM   #493
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Union says 215 Delta pilots opt for retirement

ATLANTA, July 16 (Reuters) - About 215 pilots at Delta Air Lines Inc have opted to take voluntary retirement packages under an incentive program, the union representing them disclosed on Thursday.

The pilot union's executive committee said in a memo posted on its website that pilots have until July 31 to revoke their decision to participate in the program, which Atlanta-based Delta offered in a bid to cut costs.

Delta, which merged with Northwest Airlines last year to create the world's biggest airline, has about 12,400 pilots. The union had said 9,400 pilots met the criteria for the voluntary program. Pilots who elect to depart could receive up to nine months of severance pay and other benefits.

Delta eliminated 4,000 jobs last year through voluntary exit packages.

A unit of the Air Line Pilots Association represents Delta pilots.
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Old July 17th, 2009, 10:03 PM   #494
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Two weeks on, and Delta is already cutting flights
18 July 2009
The Sydney Morning Herald

DELTA AIR LINES will reduce flights between Australia and the US for three months, two weeks after launching services, amid intense competition on the route.

In an embarrassing decision, the world's largest airline has blamed the reduction of its daily service to six flights a week between September 6 and December 6 on the need to carry out maintenance on one of its long-haul Boeing 777s.

Business travellers are likely to take a dim view of the cut to flights because they like the convenience of daily services. The route has a higher percentage of corporate travellers, which had made it profitable for Qantas and United before the economic downturn.

Delta's general manager for Australasia, Steven Crowdey, said the airline had considered using another aircraft from its global network on the route but it had proved too difficult. The most suitable aircraft for the job would also have added too many seats to the route.

Mr Crowdey denied the cuts to services was due to its planned joint venture with Virgin Blue on the route or the intense competition between the four airlines. "We have looked at all the ways to save daily services but it just doesn't work. We are really upset about it," he said.

Delta would not disclose the load factors a measure of seats occupied by paying passengers on its aircraft during the first two weeks of flights across the Pacific.

Government figures released this week show that Virgin's long-haul carrier, V Australia, filled on average 57 per cent of the seats on each flight in April. Qantas fared much better with 82 per cent and United 78 per cent.

Virgin and Delta's plans to form a revenue-sharing agreement on the route is a tacit admission of the challenge for the two newest carriers. But Mr Crowdey said Delta did not expect a decision from regulators in the US on its proposed tie-up for up to a year.

Industry officials believe the US regulators are likely to prove the biggest hurdle to the deal.
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Old July 18th, 2009, 09:12 AM   #495
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Delta Air lifts fares by $10 across U.S. routes

ATLANTA, July 17 (Reuters) - The latest U.S. fare increase at Delta Air Lines Inc could be a sign that domestic demand has reached its nadir, according to FareCompare.com, which compares prices for flights.

FareCompare.com data showed that Delta and its Northwest subsidiary boosted fares by $10 roundtrip on Thursday across the bulk of its U.S. flights. A Delta spokeswoman confirmed the fare increase.

That increase, if broadly matched by rivals, would be the third successful domestic fare boost by U.S. carriers in the past six weeks.

Rick Seaney, CEO of FareCompare.com, said on Friday the latest boost came after two successful U.S. fare increases in June.

Delta, like other carriers, has slashed the number of seats it sells to offset falling travel demand. The Atlanta-based airline plans to cut international capacity by 15 percent starting in September, and recently offered its pilots voluntary separation packages in a bid to cut costs.

Seaney said even though U.S. airlines were still discounting some prices, the success of the recent fare increases at Delta and other U.S. airlines such as AMR Corp's American could signal that domestic demand may have bottomed.

"This is a good sign for the airlines and it's a sign to consumers that the honeymoon is over for the last months of wild and crazy discounting," Seaney said.

The company's shares were down 4 cent to $6.08 on the New York Stock Exchange on Friday.
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Old July 19th, 2009, 10:45 AM   #496
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Security concerns prompt airlines flying to Kenya to hire guards; new Delta route grounded
17 July 2009

NAIROBI, Kenya (AP) - Many airlines flying into Jomo Kenyatta International Airport have hired private security firms to guard passengers, cargo and aircraft rather than rely on the Kenya Airports Authority or local police for protection.

Although U.S. and Kenyan authorities said there is no immediate threat of terrorism to the airport or to airlines operating there, previous incidents have raised concerns.

Kenya has been hit with three major terrorist incidents over the last 11 years. Al-qaeda operatives bombed the U.S. Embassy in 1998, killing more than 200 people. In 2002 a car bomb exploded at a seaside hotel frequented by Israeli tourists, killing 15 people. At almost the same time, terrorists tried to shoot down a charter jet carrying Israeli tourists with a shoulder-fired missile.

The question of security at the Nairobi airport was raised again last month when Delta Air Lines abruptly canceled an inaugural flight from Atlanta to Nairobi after the Transportation Security Administration refused to sanction the route.

Aviation experts say private airport security guards are common in war zones around the world, but rare in relatively stable nations like Kenya. Still, national carrier Kenya Airways is among those using a private security firm at the Nairobi airport.

"We have done that because of the fact that we don't believe that the security we get out of the airport is enough," Titus Naikuni, the group managing director of Kenya Airways, told The Associated Press.

"It is not just unique to Kenya. Even outside Kenya, people have done that," said Naikuni. "I cannot abdicate that to a third-party security."

The Kenya Airports Authority, an autonomous government organization that manages the country's airports, declined to comment.

Naikuni says Kenyan forces may be lacking in security coverage, but they do well at intelligence gathering. "They provide us with information, unfortunately sometimes we can't share that information because it is confidential. But they are very knowledgeable," Naikuni said.

On June 2 Delta Air Lines canceled its first scheduled flight from Atlanta to Nairobi following a last-minute order from the Transportation Security Administration Division of the U.S. Homeland Security Department.

According to a TSA official who spoke on condition of anonymity because the official was not authorized to speak publicly about the matter, Delta sold tickets for the flight without approval for the route from the government.

Delta did not get the go-ahead for several reasons, including a security assessment of the airport and an agreement with Kenya on countering potential threats, the official said. The official provided no other details.

Delta spokeswoman Susan Elliott said that the airline has long followed the accepted industry practice of announcing and selling service pending required government approvals.

"A late decision by TSA to deny the start of service to Nairobi and Monrovia was a highly unusual situation that had never before occurred," Elliott said. "Delta has apologized to customers who were impacted by this unexpected cancellation."

A State Department official, who spoke on condition of anonymity because the official was not authorized to speak to the media, said the cancellation is related to a Nov. 14 travel warning, citing threats to civilian aircraft.

The warning is a general one connected to the 2002 attempt to shoot down the charter jet, the official said, adding there was no specific threat to the Delta flight.

Steve Lott, spokesman for the International Air Transport Association, said airlines expect governments to take responsibility for the safety and security of airports. The airline industry spent $5.9 billion last year to comply with government procedures to ensure safety and security at airports, said Lott, whose organization represents 230 airlines around the world.

"It's not that common for airlines across the globe to hire private security forces at every airport they serve," Lott said. "That's why we rely on government resources and oversight to provide security for a city airport."

Jomo Kenyatta International Airport plays a major role in Kenya's business and tourism plans. A number of international airlines operate from it; including Air India, British Airways, Emirates, KLM, Qatar Airways, Saudi Arabian Airlines, South Africa Airways, Swiss International Air Lines and Virgin Atlantic.

The number of passengers passing through the airport has risen to about 4.86 million in 2007 from 3.45 million in 2003, according to a government economic survey.

Kenya is a top tourist destination in Africa, because visitors can see wildlife in its natural habitat and enjoy miles of white sand beaches. Last year, 1.2 million tourists visited the country.

Kenya is also an economic and diplomatic hub for eastern Africa. Many businessmen, diplomats and aid workers pass through its main airport. Nairobi is the Africa headquarters for major investors such as Atlanta-based Coca Cola Co. It also hosts United Nations headquarters in Africa.

----

Associated Press Airlines Writer Harry Weber in Atlanta and Associated Press writers Matthew Lee and Eileen Sullivan in Washington contributed to this report.
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Old July 22nd, 2009, 08:22 AM   #497
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Recession cuts Delta's worldwide flight plan: Drop in international fliers revises timetable for global growth.
19 July 2009
The Atlanta Journal - Constitution

There's nothing like a global recession to make the best-laid plans go awry.

A little over a year ago, Atlanta-based Delta Air Lines was on an international growth streak started in 2005, rapidly expanding with more flights to Africa, Europe and elsewhere around the world.

Executives had their eyes on an even bigger prize: their merger with Northwest Airlines, whose expansive Asia network, including a Tokyo hub, would fill in an area where Delta was lacking. Delta looked forward to being the No. 1 carrier to Asia and touting itself as a "truly global airline."

Fast-forward to today. International travel is slumping --- far more than domestic travel. Asia is one of the hardest hit regions. Delta is now cutting international capacity by 15 percent.

International flights have long been cash cows, but some have become burdens to be unloaded as quickly as possible as business travelers cut back, taking with them the high-end fares that subsidize tourist-friendly discounts.

In good economic times, international markets have higher operating margins than domestic markets where airlines like Delta face heavy competition from low-cost carriers, said airline consultant Robert Mann. Now, those international margins are shrinking.

Some of the highest-profile international route cuts Delta is making are in Asia --- including a much-ballyhooed Atlanta-Shanghai route, which will be discontinued this fall. Delta is also axing service between Atlanta and Seoul; Mumbai; and Cape Town, South Africa.

"Customer demand for international travel has fallen significantly," Chief Executive Richard Anderson and President Ed Bastian said in a joint memo to employees last month. The capacity cuts target "routes that have experienced losses in the current economic climate and with higher fuel prices."

Other international routes being cut include Cincinnati to Frankfurt and London-Gatwick; and New York's John F. Kennedy International to Edinburgh, Scotland.

"Business travel in general is slowing and all international destinations are just much more difficult," said Avondale Partners analyst Bob McAdoo. "Delta and every other carrier who flies internationally is having to look at how much capacity to actually offer this year."

Anderson and Bastian aren't admitting defeat in their international offensive.

"In keeping with our long-term business plan, we continue to grow the global footprint that is a cornerstone of our successful strategy," Bastian and Anderson wrote.

Though Delta is cutting international capacity and eliminating routes, it is adding some new routes in other areas.

"Having this globally-balanced international network is what gives you a hedge to economic conditions around the world," said Delta spokesman Kent Landers.

But even if Delta is still moving forward, the strategy's execution has involved a running series of revisions. Last October, Delta said it was continuing to expand international capacity but would trim growth plans by about 2 percentage points from its previous plan for 15 percent international growth in the fourth quarter of 2008.

By December 2008, as the economy worsened, Delta's forecast for 2009 was for an international capacity cut of 3 percent to 5 percent. In March, the outlook worsened to a 10 percent international capacity cut for this fall. And in June, Delta revised its plans again to a 15 percent slash of international capacity.

McAdoo said he doesn't expect Delta to abandon its international push, which was born of concern that peers such as American, United and Continental were pulling bigger shares of the high-margin international travel market.

Once the economy turns, "I imagine Delta will go back and rebuild and increase frequency in those markets where it cut capacity, and reinstate international service it had for a while before the economy fell apart," he said.

Hartsfield-Jackson International Airport is inextricably tied with Delta and its international growth plans. Delta, which has its biggest hub at the airport, is in talks with the city over a new multiyear lease for its operations at the airport.

Hartsfield-Jackson is also building a new $1.35 billion international terminal to accommodate expected growth in international flights, particularly at Delta. The airport got city council approval this month for an $800 million bond deal to complete the terminal and plans to go into the market for financing in August.

International traffic at Hartsfield-Jackson is down about 5 percent this year.

"Taking the long view, we know this is a very good decision," said Hartsfield-Jackson general manager Ben DeCosta. "We're confident that the local economy will sustain and traffic will return."

Delta said that though it is cutting back flights in some areas and downgauging to smaller aircraft in others, it is maintaining roughly the same level of about 1,000 daily departures from Hartsfield-Jackson it had a year ago. It's unclear what effect Delta's international slowdown could have on the plans for the international terminal.

"Maybe it's delayed a year or two in terms of when it gets fully utilized," McAdoo said.

Last month, as Delta executives made a presentation at an investor conference, Bastian said "we're building a plan not anticipating any consequential recovery for the balance of this year."

Along with the impact of the recession, Bastian said Delta also expects a $125 million to $150 million drop in revenues due to H1N1 flu concerns. "And we did see bookings in the month of May fall off in a very dramatic manner across Asia," Bastian said.

Delta had underestimated how large the traffic drop in Asia would be. In June, Delta's traffic in its Pacific region fell 17.3 percent --- the largest drop among its regions --- even though it had only cut flight capacity by 5.9 percent in the Pacific.

But Delta has not been alone in rushing to keep up with the fall in passenger traffic, according to the International Air Transport Association. Other airlines' cuts have also trailed behind declines in traffic.

Benefits from lower fuel costs have been outweighed by drops in traffic and fares across the airline industry, according to the report. "The expectations reported for the next 12 months have dipped into pessimism once more," according to IATA's business confidence index.

Although analysts have speculated about the solvency of some airlines, Delta has been seen as stronger than some of its competitors.

That's partly because of Delta's moves to cut back flights amid slow demand.

"They have been far more proactive eliminating flights that are not paying for themselves," McAdoo said.
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Old July 22nd, 2009, 01:59 PM   #498
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Delta adds $5 fee for checked bags
22 July 2009
The Atlanta Journal - Constitution

Delta Air Lines has quietly added a $5 surcharge for paying checked baggage fees at the airport instead of online, matching moves by some other airlines.

Atlanta-based Delta already charges $15 for the first checked bag and $25 for the second checked bag on domestic flights.

But starting Aug. 4, Delta will begin charging those who pay for checked bags at airport ticket counters, kiosks and curbs $20 for the first checked bag and $30 for the second checked bag, for domestic flights purchased July 15 or later. The fees for checked bags when paying online remain the same.

US Airways started charging the fee for paying at the airport earlier this year. United Airlines matched the move. Continental Airlines has also just put in place a higher fee for paying for checked bags at the airport for tickets purchased Tuesday or later for flights Aug. 19 or later.

Delta said its baggage fees brought in more than $160 million in revenue in the first quarter, when it reported a $794 million loss. The company reports second-quarter financial results today.
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Old July 23rd, 2009, 09:38 AM   #499
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Delta CEO says Plan B is continue to be conservative if demand doesn't recover
22 July 2009
Associated Press Newswires

Delta Air Lines executives are often asked when they think the airline industry will recover from the economic downturn, and more specifically when demand for air travel will pick up. Delta Chief Executive Richard Anderson discussed the issue in the company's second-quarter earnings conference call with analysts on Wednesday.

QUESTION: What is your Plan B if demand for air travel doesn't recover?

RESPONSE: We have the ability to right-size capacity. ...Our strategy is to continue to position Delta at the head of the pack so as the industry evolves to a more mature state, we are well-positioned to continue to lead the industry.
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Old July 24th, 2009, 09:50 PM   #500
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Delta Air Lines spent $752,902 lobbying federal government in second quarter
24 July 2009

WASHINGTON (AP) - Delta Air Lines Inc., the world's biggest airline operator, spent $752,902 in the second quarter to lobby on passenger issues, international alliances between carriers and airline personnel training, according to a recent disclosure form.

The Atlanta-based carrier, whose spending total included subsidiary Northwest Airlines, also lobbied on a bill that would require certain foreign carriers to disclose the nature and source of delays and cancellations experienced by air travelers, and a bill that would enhance airline passenger protection when the Secretary of Transportation issues a rule to require airline emergency contingency plans.

Several U.S. carriers are part of, or are pursuing, alliances with foreign carriers.

Delta acquired Northwest in October. In the first quarter, the combined company spent $819,566 to lobby the government. For the fourth quarter of 2008, Delta spent $610,000, while Northwest spent more than $1.4 million.

Sametta Barnett, formerly of the Homeland Security Department, was among those registered to lobby for Delta in the second quarter, according to the disclosure form filed July 20 with the House clerk's office.

Besides Congress, Delta lobbied the Federal Aviation Administration and the departments of Transportation and Homeland Security in the April-June period.
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