Delta Airlines : DL : DAL :

Executive management at Delta Air Lines expects to receive regulatory approval for its slot swap with US Airways in New York and Washington by the end of January.
In August of 2009 the two carriers announced a strategic swap that entailed US Airways agreeing to transfer 125 pairs of its Express slots at New York's LaGuardia airport to Delta, which would result in Delta transitioning the airport into a hub. In turn, Delta agreed to transfer 42 pairs of its slots at Washington National airport to US Airways.
A pair of slots equal one roundtrip flight.

At the time the deal was announced US Airways said the agreement would allow it to grow passenger enplanements at Washington National by 30%-35%, while Delta emphasised it would double the number of destinations it serves from LaGuardia by adding or sustaining flights to 30 small and medium-sized communities.

Today during an earnings call Delta executives explained the US Department of Justice is reviewing the transaction and that "it should come to a head this month". Management says it expects the country's Transportation Department to weigh in within the same time period.

Delta expects a resolution from both agencies by early February, says the carrier.
The airline is also targeting to complete the swaps in June, say executives. They explain if there are delays in gaining approval the date could be pushed back, but currently the carrier believes the June target still stands.

Delta Air Lines posted a 2009 net loss of $1.24 billion, narrowed considerably from a massive deficit of $8.92 billion in 2008 when results were affected by heavy goodwill impairment charges and costs related to its acquisition of Northwest Airlines.

DL acquired NWA on Oct. 30, 2008, so its 2009 income and revenue include those of the Minneapolis-based carrier. But DL's 2008 figures include NWA only for Oct. 30-Dec. 31. DL/NWA's combined 2008 net loss was $14.38 billion, ATWOnline calculated. DL executives yesterday told reporters and analysts that merger activities are nearly complete and predicted that results in 2010 will benefit from a lack of integration costs and complications.

The carriers have been on a single operating certificate since Jan. 1. CEO Richard Anderson said the company is in "the home stretch of the merger integration," adding, "We will shortly in the [late] first quarter have just one Delta. . .with the airplanes free-flowing rather than having to operate" two airlines as was the case in 2009, leading to operational restrictions on a number of routes.
President Ed Bastian said 2009 was "indeed a challenging year for Delta" as it contended with the integration and a weak global economy, but he noted that there is "clear evidence that the revenue environment is improving" and that "business travelers are returning." Anderson said DL plans to be "disciplined" on capacity this year, with full-year capacity expected to be "roughly flat" compared to 2009.

DL's 2009 revenue was $28.06 billion, officially up 24% from 2008 but down 18.1% from combined DL/NWA revenue of $34.25 billion calculated by ATWOnline for that year. Its expenses were $28.38 billion, down considerably over combined DL/NWA 2008 expenses that exceeded $40 billion, and operating loss was $324 million, significantly improved over a combined DL/NWA operating loss of $13.74 billion in 2008.
Full-year 2009 consolidated traffic lowered 6.8% compared to combined DL/NWA 2008 traffic to 188.94 billion RPMs on a 6.4% cut in capacity to 230.3 billion ASMs, producing a load factor of 82%, down 0.4 point. Yield decreased 14% to 12.6 cents as PRASM declined 14.3% to 10.34 cents and CASM fell 36.5% to 12.01 cents. CASM excluding fuel and special items increased 3.8% to 8.28 cents.
Fourth-quarter net loss was $25 million, improved over a combined DL/NWA net loss of $9.55 billion in the prior-year period.

by Aaron Karp

Five US carriers seek Haneda slots

American, Continental, Delta, United and Hawaiian Airlines have all applied for four available slots for US carriers at Tokyo's Haneda airport.
The availability of slots at close-in Haneda resulted from the conclusion of an open skies pact reached between Japan and the USA in December 2009. Haneda is roughly 20km (11 miles) from Tokyo's city centre while Narita is 65km away. Haneda is primarily limited to domestic traffic, but a new runway opening later this year will allow for expansion of long-haul international flights.
"We have long wanted to fly from New York and Los Angeles to Haneda, the closest airport to downtown Tokyo," says Will Ris, American's SVP of Government Affairs.
Oneworld partner American is seeking slots to operate flights from New York's John F Kennedy International airport and Los Angeles International airport using 247-seat Boeing 777s configured with 16 first class, 37 business and 194 economy seats.
Continental and its wholly-owned subsidiary Continental Micronesia are seeking slots to offer flights from Newark and Guam, respectively. Continental would operate Boeing 777s from Newark to Haneda while Continental Micronesia would place a Boeing 767-400 on its flights to Tokyo.
Continental's fellow Star Alliance partner United is seeking one of the slots to offer service from its San Francisco hub using Boeing 777s configured in a three-class configuration. The carrier also highlights the 777 supplies ample capacity for cargo from its hub in San Francisco to Haneda.
United also states that passengers have connecting opportunities with its codeshare partner and fellow Star Alliance member All Nippon Airways (ANA) at Haneda to several points in Japan and Asia. United, ANA and Continental Airlines and Oneworld members American Airlines and Japan Airlines (JAL) are seeking anti-trust approval from US regulators to establish transpacific joint ventures as a result of the open skies agreement. The firming up of open skies between the USA and Japan is contingent on ANA and JAL receiving anti-trust approval with their respective US partners.
Delta, who ultimately failed to convice JAL to shift from Oneworld its SkyTeam alliance, is seeking slots to offer flights from Haneda to Seattle, Detroit, Los Angeles and Honolulu. On its proposed flights to Haneda from Detroit, Los Angeles and Honolulu Delta would operate Boeing 747-400s, and fly Airbus A330-300s from Seattle.
"Enabling Delta to enter Haneda is critical to advancing airline competition in Tokyo, particularly considering the strong presence that the Star and Oneworld alliance carriers already enjoy at this important and tightly controlled airport," says Glen Hauenstein, Delta's EVP network and revenue management. Through its merger with Northwest Airlines, Delta has a strong presence at Narita.
Hawaiian, meanwhile, is requesting two of the four slots to support two daily nonstop flights from Honolulu to Haneda using Boeing 767-300ER aircraft. Hawaiian tells regulators as the first of its Airbus A330s come online later this year, 767s will be free for use on the proposed flights to Haneda.
But the carrier anticipates growing the service to support flights operated by its larger A330s.
Hawaiian tells US regulators the proposed Honolulu-Haneda flights are the next logical step for establishing itself as a major carrier in the Pacific. In addition to offering mainline service to the USA, Hawaiian also offers flights from Honolulu to Australia, Tahiti, the Philippines and American Samoa.
Most of the carrier's anticipate starting flights to Haneda in late 2010.

Delta Air Lines n’est vraiment pas enthousiasmée par le Dreamliner.

Le Président de la compagnie américaine, Richard Anderson, n’a pas caché son manque d’intérêt pour la commande qu’il détient pour dix-huit 787-8 lors de la présentation des résultats du premier trimestre le 20 avril.
Lorsqu’on lui a demandé si Delta était toujours cliente du Dreamliner, Richard Anderson a répondu : « techniquement, oui. »
Il a précisé qu’il était toujours en négociation avec l’avionneur américain pour décider du sort à réserver à cette commande, héritée de la fusion avec Northwest Airlines.

Il a également indiqué que les contrats de leasing sur ses Boeing 747-400 avaient été prolongés de cinq ans.

Egalement hérités de Northwest, les seize Jumbo Jets vont de plus être dotés d’une nouvelle cabine.

Or, cet investissement prouve que Delta est plutôt encline à les conserver, alors que ce sont justement ces appareils que Northwest voulait remplacer par des 787.

Enfin, Richard Anderson a estimé que sa flotte transocéanique était en bon état et plutôt jeune – d’une moyenne d’âge située entre huit et dix ans.

Delta n’a jamais été vraiment intéressée par le Dreamliner, auquel elle préfère le 777.

Elle avait déjà exclu les appareils d’un tableau récapitulatif de ses commandes fermes, sous prétexte que Boeing
était incapable de remplir les délais contractuels de livraison.

En janvier, elle a indiqué qu’elle voulait au moins repousser les dates de ces livraisons.

Les six premiers appareils doivent intégrer la flotte en 2013.

Delta Air Lines Inc. is upsizing a plan to hire new pilots later this year as the carrier gets a better gauge on future demand needs.
The world’s largest airline is also tinkering with its aircraft mix, planning next year to bring back as many as two dozen aircraft that were parked in California’s Mojave Desert because of recession-driven capacity cuts.
Delta officials are careful to say their plans to add more pilots and shuffle the fleet are not an indication of an expansion of service, as its net total of aircraft is still expected to decrease. But an airline analyst said the moves could give the carrier added flexibility as early signs of recovery for the industry continue.
Atlanta-based Delta (NYSE: DAL) now plans to hire about 300 new pilots, up from the 240 it announced earlier this month, Delta spokeswoman Gina Laughlin confirmed to Atlanta Business Chronicle.
The carrier also confirmed it would return to service next year no more than 25 jets it had been storing in the desert. Just how many planes returned to service, and when, depends on passenger demand, Delta said.

“We continue to manage capacity and take advantage of one of the great benefits of our merger — a diverse and flexible fleet that allows us to use the right aircraft in the right market, whether that’s by day of week, time of day or time of year,” Laughlin said, referring to Delta’s 2008 acquisition of [Vous devez être inscrit et connecté pour voir ce lien]
The past three years have been brutal for the nation’s airlines, which battled historic fuel prices and a precipitous decline in passenger demand with the fallout of Wall Street’s collapse.
The airlines, including Delta, slashed capacity as a result and more than 200 pilots accepted buyouts. But air travel has seen a rebound since bottoming out in May 2009.
On May 4, Delta announced its plan to hire new aviators as it moves to restore some previously cut flight schedules and increases the use of wide-body airliners. The airline is also hiring to replace pilots expected to retire over the next year.
“With this announcement of hiring comes the opportunity for furlough bypass pilots to return to Delta and for other pilots who desire employment with us, the opportunity to join our ranks,” Delta Senior Vice President Steve Dickson said in a May 4 memo to pilots.
The new pilots will come aboard sometime in the fall, and ensure Delta will be fully staffed come summer 2011.
The world’s largest airline is also juggling its fleet. The carrier previously announced it would remove 86 less-efficient jets from service this year. These include a total of 65 regional jets and turboprops, as well as older DC-9s and Boeing 757s.
But Delta confirmed to the Chronicle it would return to service in 2011 no more than 25 aircraft — including an undetermined number of MD-90s, 757s and Boeing 767s — that were parked in the California desert because of recession-driven capacity cuts.
Laughlin said the planes were stored with the intent of returning them to service upon a return in passenger demand.
These changes come on top of previously announced acquisitions of two Boeing 737-800s and seven used MD-90s.
Delta has curtailed capital expenses to conserve cash and has been tight with capacity to keep load factors and yields high.
Capacity remains essentially flat this summer compared to last year

US majors earn $1.45 billion in second quarter
With Delta Air Lines leading the way with a $467 million second quarter profit, the nine largest US passenger airlines posted cumulative net income of $1.45 billion for the three months ended June 30, turned around from a net loss of $556 million in the year-ago period, ATW calculated.
The carriers enjoyed an 18.5% year-over-year rise in combined revenue to $31.47 billion, outpacing a 9.5% climb in expenses to $28.85 billion that was mostly attributable to higher fuel costs. Operating income was $2.82 billion, significantly widened from a $182 million operating profit in the year-ago period.
All nine carriers were profitable on an operating basis and only American Airlines incurred a net loss

SAS Group to remove MD-90s through lease to US carrier

SAS Group is to withdraw its Boeing MD-90 aircraft from its fleet after reaching a lease agreement with a US carrier for the eight aircraft.
The identity of the US operator has not been disclosed. Delta Air Lines is the only carrier currently using the type in the USA, with a fleet of around 20.
SAS Group's Finnish division Blue1 has five of the SAS MD-90s. Swiss carrier Hello operates three other MD-90s formerly in the SAS Group fleet.
Phase-out of the MD-90s is set to start in the third quarter of this year. SAS Group says the twin-engined type is a "niche" aircraft and that the company wants to simplify its fleet.
All of the jets will have been delivered to their new operator by the end of the second quarter of next year. The aircraft will be leased for five years.
SAS has already been removing a large number of Boeing MD-80s from its fleet, with several being transferred to the parent of US-based Allegiant Air

Delta Revitalizing Boeing 747-400 Fleet with New Interiors

TOKYO, Sept. 2, 2010 /PRNewswire/ — Delta Air Lines (NYSE: DAL) today unveiled plans for the complete revitalization of its fleet of Boeing 747-400 aircraft flying primarily from the [Vous devez être inscrit et connecté pour voir ce lien]. Between summer 2011 and 2012, Delta will equip each of its 16 747-400s with new fully horizontal flat-bed seats in the [Vous devez être inscrit et connecté pour voir ce lien] cabin and new Economy class seats featuring personal, on-demand entertainment, increased personal space and added under-seat storage.
The investments are the latest in Delta’s previously announced plan to [Vous devez être inscrit et connecté pour voir ce lien] in enhanced global products and services through 2013. When complete, Delta will offer [Vous devez être inscrit et connecté pour voir ce lien] on more than 100 trans-oceanic aircraft, including all Boeing 777s, 767s and 747s, and will feature personal, in-seat entertainment for both BusinessElite and Economy class customers on all widebody flights.
“The multimillion dollar investment we are making to completely revitalize our trans-oceanic fleet speaks to our strong commitment to the Asian market,” Delta President Ed Bastian said in a press briefing here today. “While we have solidly positioned ourselves as the leading U.S. carrier across the Pacific in terms of flights and destinations, we are now taking steps to enhance the products and services offered across our Asian-Pacific network to position Delta as a leader in in-flight service.”

BusinessElite enhancements
The 747 upgrades will bring substantial changes to both decks of the aircraft’s BusinessElite cabin. The new, custom-designed product will feature 48 horizontal flat-bed seats with direct aisle access at each seat. Window seats will face the window for improved privacy and center seats will be angled toward each other for the convenience of customers traveling together.
The new seat, manufactured by Weber Aircraft LLC, will be 81.7 inches in length and 20.5 inches wide, similar to the flat-bed product currently offered on Delta’s 777-200LR fleet. It also will feature a 120-volt universal power outlet, USB port, personal LED reading lamp and Panasonic’s 15.4 inch personal video monitors with instant access to 250 new and classic movies, premium programming from HBO and Showtime, video games and more than 4,000 digital music tracks.
“The design of our flat-bed product meets customers’ desire for comfortable sleep, direct aisle access and ample storage and work space when they travel on long-haul flights,” Bastian said. “We have had great success from a customer service and business standpoint with flat-bed service since it first rolled out on our 777 fleet, and we expect similar results when customers experience our new trans-Pacific 747 and 767 BusinessElite product beginning next year.”
In the last year, Delta has [Vous devez être inscrit et connecté pour voir ce lien] in [Vous devez être inscrit et connecté pour voir ce lien] across the Pacific with the introduction of personal, hand-served entrees, signature dishes created by celebrity chef Michele Bernstein and master sommelier Andrea Robinson, expanded dessert options and improved Japanese meal options created by Delta’s flight kitchen in Tokyo.

Economy class improvements
Customers in Economy class on the 747-400 will benefit from the industry’s first seat designed collaboratively by a seat manufacturer and an in-flight entertainment company, Weber Aircraft and Panasonic Avionics Corporation, to fully incorporate seat and entertainment functionality into one product. Using a nine-inch screen, the new seat’s embedded touch-screen entertainment system will offer each customer access to 250 movie titles, hundreds of television shows, 4,000 digital music tracks, personalized music playlists, more than a dozen interactive games and a USB port to charge iPods and other personal electronic devices.
The new seats offer up to 1.5 inches more personal space and increased under-seat storage through a “slimline” design that more efficiently uses cabin space than the older, heavier seats they replace. The upgraded seats also feature adjustable headrests and deliver environmental benefits through the Panasonic Eco 9i Integrated Smart Monitors that use 30 percent less energy and are 60 percent lighter than entertainment systems installed on other Delta aircraft.
Delta’s 747s are dedicated largely to trans-Pacific and intra-Asia flights to and from the [Vous devez être inscrit et connecté pour voir ce lien], including routes connecting Tokyo to [Vous devez être inscrit et connecté pour voir ce lien], Honolulu, Manila, [Vous devez être inscrit et connecté pour voir ce lien], [Vous devez être inscrit et connecté pour voir ce lien] and Shanghai.
When reconfigured, the 747s will accommodate 386 customers with 48 BusinessElite seats and 338 Economy class seats.

Delta Air Lines (NYSE: DAL) today reported traffic results for August 2010. System traffic in August 2010 increased 1.1 percent compared to August 2009 on a 1.2 percent increase in capacity.

Load factor remained flat at 86.5 percent.

Domestic traffic decreased 0.9 percent year over year on a 0.3 percent increase in capacity.
Domestic load factor decreased 1.0 point to 85.8 percent.

International traffic increased 4.2 percent year over year on a 2.7 percent increase in capacity, and load factor increased 1.3 points to 87.4 percent.

Quentin_Y2 a écrit:Pour DL, l'A 380 n'est peut-être pas au programme.

Mais les B 747-400 sont de moins en moins attirants, voyez ce que fait AF...

L'arrivée des A 380 sur des destinations US va créer une émulation. La panade financière ( hors SWA qui n'est pas concerné ) générale chez les clients potentiels des A 380 ou B 748 I explique en grande partie tout cela.

Des leasing sont possibles, A 380 seulement currently, mais à 1 million USD / Mois, faut réfléchir un bilan convaincant... :roll:

Delta Projects Higher Margins

Delta Air Lines expects to report a 12% to 13% operating margin for the third quarter, a bit better than the previous projection it made in July, and some analysts are taking the airline’s update as a positive sign for the U.S. airline industry as a whole.
The airline provided the new projection in an investor update filed with the Securities and Exchange Commission on Sept. 14. In mid-July, when it released its second-quarter earnings report, Delta forecast a 10% to 12% operating margin for the third quarter. Its second-quarter operating margin of 11.4% already was the airline’s best in a decade.
J.P. Morgan analysts Jamie Baker and Mark Streeter attributed less than half of the improved outlook to slightly lower fuel prices than expected ($2.30 per gallon instead of the previous Delta projection of $2.33).
The source of most of the rest, they say, is better growth than expected in passenger unit revenue.
In July, in connection with the second-quarter earnings release, Delta President Ed Bastian said the airline expected the percentage increase in its passenger unit revenue to be in the “double digits” for the third quarter, but would not get more specific. J.P. Morgan analysts expected the number to be about 11%.
In the Sept. 14 investor update, Delta says it expects the increase to be 15%. That’s lower than the 19.4% gain in the second quarter, but year-over-year comparisons are more difficult in the third quarter. That’s because Delta’s revenue began to rebound in July 2009.
J.P. Morgan analysts believe more airlines will be reporting a third-quarter upside in the coming days and weeks, including American Airlines, Continental Airlines, United Airlines and US Airways, “suggesting that near-term (and misplaced, in our view) demand fears will quickly be put to rest.”
“Revenue weakness is certainly possible given other economic trends, but we simply haven’t seen any material drop-off in the return to more normalized demand trends,” they added.
Bank of America Merrill Lynch analyst Glenn Engel had a similar take. “With capacity rising as airlines increase utilization in off-peak months, investors fear a further sharp deceleration in unit revenues during September. Delta Air Lines’ guidance offers comfort that airline earnings should match expectations,” he says.
Delta's investor update came on the heels of the carrier's monthly traffic report, which showed a 1.1% increase in traffic in August on 1.2% more capacity. Domestic traffic fell 0.9% on 0.3% more capacity, pushing the load factor down one point to 85.8%. But international traffic increased 4.2% on 2.7% more capacity, boosting that load factor by 1.3 points to 87.4%.

Delta chief executive Richard Anderson

Air Lines chief Richard Anderson recounts building the world's largest airline during the worst down cycle in living memory
We are sitting at Richard Anderson's dining room table. But we are not breaking bread in the Anderson household. The table resides in Anderson's office at Delta's corporate headquarters in Atlanta. He brought it in to double as a conference table when he returned to the industry to become Delta's chief executive in September 2007. Seven months after Anderson set up his office, table in tow, Delta embarked on a merger with Northwest Airlines. This merger created the world's largest carrier in terms of traffic, with more than 80,000 staff and a fleet exceeding 700 aircraft. Some would describe it as the most seamless airline tie-up to date, despite it occurring just as oil prices soared to record highs and demand vaporised with the onset of the unprecedented global downturn.

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Anderson, who was chief executive of Northwest from 2001 to 2004, describes these as "probably two of the most tumultuous years in modern business history". These external dire straits gave Delta a "certain urgency about getting the merger done, because we really did need to pull the combination off successfully to make the synergies work", he says. "When fuel is at these kinds of prices and your fuel bill has gone up a couple of billion dollars, you need to have a couple of billion dollars in synergies to make sure your business plan is going to be viable in any environment."

Delta was not spared from the massive financial bleeding all carriers endured in 2009, posting a $1.2 billion loss as the top 150 global carriers haemorrhaged roughly $7.8 billion. But Delta continues to march towards its goal of achieving $2 billion in synergies from the merger in 2011, projecting $1.5 billion in annual merger synergies by the end of 2010.

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WHY RETURN?

Anderson spent 17 years in the airline industry before leaving in 2004 to take an executive position at United HealthGroup. But he returned just three years later after being lured back by what he describes as "just a fascinating businessthere's a certain attractiveness and appeal to the 24/7 worldwide nature of this business". His decision to return was not based on financial prospects. Laughing, he says: "If I were in it for the money I wouldn't have left my last job. I had a great career at United HealthGroup."

Anderson says spending a lot of time engaged in mergers at United HealthGroup, which has done a number of mergers similar in size, was also useful in crafting the architecture of merging Northwest and Delta.

Asked if he plans to stick around in the airline business, Anderson definitely says: "Oh yeah. I'm 55. I was CEO of Northwest when I was 45 and COO when I was younger than that, so I got a pretty good jump on things

Anderson's well-known attention to detail permeated through the integration process and contributed to Delta exceeding those targets. He lights up when discussing the minutiae of combining two large international airlines. Roughly 26 teams had specific deliverables with their own timelines, capital request and operating expenses. "You had to understand way down in the weeds of the business what each team was doing and what their strategy was," says Anderson. "This was not a top-down strategy. This was really a bottom-up integration process, where you let the real experts have their way with the decision making process and we drove the process on a daily, hourly basis, just about."

Managing the merger from the ground up helped Delta avoid the tricky technological challenges that plagued US Airways and America West in March 2007. Their reservations system migration resulted in several hundred delayed flights and long lines of frustrated passengers queuing up to check-in.
"The biggest challenge in any merger of this size is technology," Anderson explains. Legacy airlines in particular have less flexible mainframe applications and data integration is key. Delta deliberately tested the technology and related business processes, says Anderson. "We had no [meltdowns], and we planned to have no massive meltdowns."
Anderson believes Delta was successful in dissolving any competitive concerns about the merger, saying those worries "have wholly failed to materialise". But consolidation alone cannot fix the industry's chronic revenue degradation. Shortly after Anderson took the helm at Delta, he offered a frank assessment of the industry to a local newspaper. "We have to be able to look back and say we solved the business-model problem."
Delta and virtually all the US majors now, more than ever, appear to be zeroing in on the balance sheet degradation that has plagued the industry for about three decades, says Massachusetts Institute of Technology airline analyst William Swelbar. A recurring theme expressed by Anderson and other members of Delta's management is de-levering its balance sheet, with the carrier's stated goal of reducing its net debt from current levels of roughly $15.6 billion to $10 billion by 2012.
Anderson stresses the importance of creating a viable business model that serves employees, communities and investors. "Our equity shareholders deserve the kind of returns on capital that a highly capital intensive business requires," he says. One issue he feels strongly about is eliminating export credit subsidies which support aircraft financing. Anderson believes the market has been distorted through "overcapacity as a result of the US government providing billions and billions of dollars of below-market financing for Boeing airplanes". He says this means home airlines suffer. "I believe the airline business provides far more jobs and economic activity than the four principal aircraft manufacturers."
Anderson also believes part of the onus for sustainable industry profitability lies with the manufacturers. In a stern tone, he says airframers "have got to produce airplanes that have demonstrable returns" over the long cycle. If they fail to deliver aircraft meeting those expectations, the chief of the world's largest carrier warns: "We're not going to buy them."
Delta needs to revamp its narrowbody fleet before turning to widebody replacements. "We really need clear guidance from the manufacturers about what their intentions are in terms of innovation," Anderson says. He sees opportunities for both re-engined narrowbodies and a clean-sheet design. And while Anderson believes the "next-generation narrowbody needs to be developed", the only way to deliver 15-20% fuel efficiency improvements during the next five years is via re-engining.
The US carrier is also monitoring development of Bombardier's CSeries. Anderson says the airframer is "pretty far down the road in their new narrowbody platform, which once again shows - at least from what we read - an airplane that has substantially better fuel efficiency than the existing single-aisle airplanes in service today".
Delta inherited an order for 18 Boeing 787s through the Northwest merger, although it is yet to fix its delivery schedule. But Anderson is complimentary about the twinjet and believes technological know-how is transferable to future designs. "I think Boeing has actually done a pretty remarkable job on the 787. When you look at what that airplane was originally designed to do, it is a real step change," he says. Combining the aircraft's composite fuselage with more efficient engine, Anderson believes "the technology is a solved problem, actually, for a next-generation narrowbody".
Despite this praise, Anderson is not concerned about his competitors, Continental and American, introducing the 787 before Delta. Explaining Delta's widebody strategy, he stresses the carrier has 167 transoceanic aircraft with an average age of 11 years, including 10 777-200LRs with more range than the 787. Overall Delta has about 50 aircraft capable of operating 12 hours or longer and, citing Delta's $1 billion investment into its widebody fleet to overhaul the interiors with lie-flat seats, in-seat power and individual in-flight entertainment, Anderson simply says: "We're making the right investments. We have the right fleet."
Turning to network, now that Delta's combination is essentially complete, Anderson does not necessarily see gaps, but instead stresses the importance of strengthening its SkyTeam alliance ties. Delta already has substantial oceanic reach through its joint venture with partners Air France-KLM and Alitalia and anti-trust immunity with Korean Air.

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NO NORTHWEST SENTIMENT

Delta's chief participated in a merger with the carrier where he spent the bulk of his airline career. When asked if he feels sentimental about the Northwest brand disappearing, without the slightest bit of hesitation he gives a definitive "no. Not at all."

He explains: "It was very much a business decision. It needed to happen, and it needed to happen quickly because that was in the best interest of everyone involved. Some people may not have seen it that way because they have an emotional tie to it, but it needed to go as part of the merger."

Prior to Anderson's arrival at Delta the carrier had warded off a takeover by US Airways. He explains that at the outset of the merger with Northwest, keeping the Delta brand was one of the commitments the carrier's management made to employees in Atlanta. "We said the airline would be headquartered in Atlanta, Georgia and it would be called Delta Air Lines," says Anderson.

Another pledge which he made to Delta employees was that the Delta culture would be ascendant. "The culture here at Delta is a very important part of what Delta is. And that is one of the reasons why the airline has been so successful," he explains.

Regardless of the outcome of the upcoming union elections, which threaten Delta's status as the only predominantly non-union US major, Anderson vows: "We won't allow whatever happens to change the way we treat our people. It won't slow down our pace and it won't slow down our focus on doing what is right for our employees".

He seems unconcerned about American, British Airways and Iberia receiving their long-awaited transatlantic joint venture approval. "You'll essentially have three alliances across the Atlantic and those alliances will compete robustly. They'll be operated by capable airlines that have been in the marketplace a long time, and the markets will be very contested." Delta is contributing to that fierce competition by attempting to seize London Heathrow slots that the oneworld carriers were required to relinquish. It has proposed year-round daily flights from Boston and Miami to Heathrow to put a dent in oneworld's Heathrow edge.

Even as Delta tries to expand its Heathrow access, Anderson remains bullish about the "first mover" advantage Delta, Air France-KLM and now Alitalia have over Star and oneworld. It has already established a transatlantic joint venture with annual revenues projected to surpass $10 billion. "We really operate it as a single airline and I think that model has proven itself. If you look at alliances around the world, it probably is the only really true alliance that has created significant value as a result of the alliance combination." Touting the strength of the joint venture's Amsterdam, Atlanta, New York, Paris and Rome hubs, he says "we're well positioned in the transatlantic to compete with any of these alliances".
Describing execution of the Northwest merger, Anderson talks about taking decisions "early, quickly and definitively". It appears the same philosophy applied to Delta's swift attempt to woo Japan Airlines away from oneworld in late 2009 and early 2010. Attempting to seize Heathrow slots relinquished by oneworld and Delta's efforts to lure JAL away "are not your father's Delta", says Swelbar. Those calculated moves speak of a direct and aggressive style that Anderson has no fear of displaying to keep Delta competitive.
Now JAL has opted to remain with oneworld and is seeking approval for Pacific anti-trust, Anderson seems unfazed, and prefers to talk about SkyTeam's Pacific strategy going forward. A key win for the alliance was securing a commitment from China Eastern to join the group after an intense competition by all three alliances to court the carrier into their respective folds. Anderson believes SkyTeam's transpacific position has been strengthened by the addition of China Eastern and Vietnam Airlines into SkyTeam, the alliance's growing ties with Garuda Indonesia and Malaysia, Delta's anti-trust with Korean Air and growing relationship with V Australia.
Building on Delta's strength in Tokyo and Korean's hub in Seoul, Anderson foresees expanding that power to China Eastern's Shanghai hub and China Southern's hub in Guangzhou. "China is still the real burgeoning and developing market for us, and our relationships with China Eastern and China Southern are really important," says Anderson. He also believes anti-trust with Korean Air can evolve even further, "along the lines that we've done across the Atlantic".
Yet Tokyo remains the mainstay of Delta's Pacific network through Northwest's entrenched ties at Narita airport. But oneworld partners American and JAL and Star carriers All Nippon Airways, United and Continental have applied for transpacific anti-trust as part of a stipulation of the US-Japan Open Skies accord reached in late 2009. Those carriers have key footholds at Tokyo Haneda airport, which is 35km (22 miles) closer to the city centre than Narita, making it more attractive to lucrative business travellers. And, after a fourth runway opens at Haneda in October, the mostly domestic airport will begin handling scheduled international flights.
Delta has received two of four daily slots allotted to US carriers under the Japan-US Open Skies accord to serve Haneda and plans to start flights from Los Angeles and Detroit to the airport in January.
While some would criticise the Japan-USA Open Skies pact as sub-par in terms of truly open access, Anderson commends the US government for "cracking the barrier there. We were in favour of it [Open Skies] provided we got real access [to Haneda]". But he believes progress needs to continue: "We need to be able to put a dozen flights into Haneda and run our hub out of Haneda, not out of Narita. We need the ability to buy and sell [slots] with all of our alliance partners, so there is just a whole series of those kinds of free market evolutions that need to take place."
Anderson's focus on strengthening Delta's global network through SkyTeam is balanced by an impending historical union election after the government altered 85-year-old representation guidelines. Now unions can get representation by winning the majority of votes cast, rather than endorsement from the majority of employees in a specific work group. More than 21,000 Delta flight attendants and roughly 30,000 ground workers are voting or preparing to vote for union representation. If the unions prevail, Delta's status as the only US major carrier that is predominantly non-union could be drastically altered.
Like other carriers, Delta sued to block implementation of the new rules, but ultimately failed to keep the old procedures in place. Delta will now "respect the process", but Anderson highlights the partisan framework that governed the rule change and warns it sets a precedent that "the rules can change at the whim of whoever is in office. I think that when the Republican party gets back into power things are going to change again."
He also believes "we'll win the elections", stressing the carrier has delivered on every pledge to employees the company laid out at the beginning of the merger process. Those commitments included an equity stake, industry standard pay by the end of 2010, fair and equitable seniority integration and no involuntary frontline employee layoffs.
Now that the bulk of the integration of Northwest is complete, is Delta finished for the time being in participating in industry consolidation? Delta's chief offers a smile and says: "I wouldn't comment on that."

Aerolineas Argentinas Said to Join Delta-Air France's SkyTeam Next Month

Aerolineas Argentinas SA, South America’s fifth-biggest airline, will next month join the SkyTeam alliance led by Delta Air Lines Inc. and Air France-KLM Group, according to two people with knowledge of the agreement.
The state-owned company, based in Buenos Aires, will sign an accord to join SkyTeam as soon as the final week of October, said one of the people, who declined to be identified because the decision hasn’t been made public.
Adding Aerolineas would help SkyTeam vie with rival group Oneworld, whose Lan Airlines SA of Chile is buying Brazil’s Tam SA and which dominates long-haul flights to South America through American Airlines and Iberia Lineas Aereas de Espana SA of Spain. The Star alliance hasn’t had a local member since Brazil’s bankruptcy-threatened Varig was expelled in 2007.
“We’ve been in talks with SkyTeam and Star and I think SkyTeam are the strongest,” Max Campos, Aerolineas’s sales manager in London, said in a telephone interview, adding that he couldn’t confirm whether or not a deal had been done.
Daniel Mendez, an Aerolineas Argentinas spokesman, declined to comment when contacted by telephone. Mariano Recalde, the company’s president, did not return a message left on his mobile phone seeking a response. Delta has no comment on potential alliance activity, spokesman Trebor Banstetter said.

Government Takeover
The Argentine government took over Aerolineas from Spain’s Grupo Marsans in 2009. The company and sister carrier Austral operate domestic routes and international flights to cities including Sao Paulo, Miami, Paris, Madrid and Sydney.
SkyTeam’s Amsterdam-based spokeswoman Marisca Kensenhuis said the alliance never discloses potential new members until an agreement is signed.
Aerolineas Argentinas operates a mix of Airbus SAS and Boeing Co. jetliners, while the Austral unit has begun taking delivery of the first of 20 Empresa Brasileira de Aeronautica SA E-190 planes to replace former McDonnell Douglas Corp. MD-80s.
The company adopted a new livery this year and also switched more flights to Aeroparque Jorge Newberry, a hub that’s closest to the center of Buenos Aires.
Tam is South America’s biggest carrier by passengers, according to International Air Transport Association data, moving 29 million in 2009. Gol Linhas Aereas Inteligentes SA, also based in Brazil, ranks second with almost 28 million passengers, Lan is third with 15 million and Colombia’s Aerovias del Continente Americano SA, or Avianca, is fourth on 9 million.
British Airways, a leading carrier in Oneworld, said today that it’s starting a daily direct service to Buenos Aires from London next March, reducing journey times for passengers who currently have to switch planes in Sao Paulo.