Delta Board of Directors Names William H. Easter III as Newest Member

Dec 3, 2012

ATLANTA, Dec. 3, 2012 /PRNewswire/ -- Delta Air Lines' (NYSE: DAL) board of directors today announced William H. Easter III as its newest member, effective immediately.

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"We are delighted to have Bill Easter join the board of directors," said Daniel A. Carp, Delta's non-executive chairman of the board.  "Bill brings deep and broad-based experience in the oil and natural gas industry, including refining and transportation.  He will enhance the strategic depth and range of Delta's already strong and independent board of directors."

Easter was chairman, president and CEO of DCP Midstream LLC from 2004 until 2008, following a 32-year career in natural gas, crude oil and refined product supply, transportation, refining and marketing for Conoco and ConocoPhillips. Easter serves as a member of the board of directors of Concho Resources, Inc., and the Memorial Hermann Hospital System in Houston, Texas. He is also a past member of the board of directors of Sunoco, Inc.

Easter received his Bachelor of Business Administration degree in Finance from the University of Houston and his Master of Science in Management from the Sloan Program at the Stanford Graduate School of Business.

Delta Air Lines serves more than 160 million customers each year. During the past year, Delta was named domestic "Airline of the Year" by the readers of Travel Weekly magazine, was named the "Top Tech-Friendly U.S. Airline" by PCWorld magazine for its innovation in technology, won the Business Travel News Annual Airline Survey and was the recipient of 12 Executive Travel Magazine Leading Edge Awards for U.S. airlines. With an industry-leading global network, Delta and the Delta Connection carriers offer service to nearly 313 destinations in 58 countries on six continents. Headquartered in Atlanta, Delta employs 80,000 employees worldwide and operates a mainline fleet of more than 700 aircraft. A founding member of the SkyTeam global alliance, Delta participates in the industry's leading trans-Atlantic joint venture with Air France-KLM and Alitalia. Including its worldwide alliance partners, Delta offers customers more than 13,000 daily flights, with hubs in Amsterdam, Atlanta, Cincinnati, Detroit, Memphis, Minneapolis-St. Paul, New York-LaGuardia, New York-JFK, Paris-Charles de Gaulle, Salt Lake City and Tokyo-Narita. The airline's service includes the SkyMiles frequent flier program, a world-class airline loyalty program; the award-winning BusinessElite service; and more than 50 Delta Sky Clubs in airports worldwide. Delta is investing more than $3 billion through 2013 in airport facilities and global products, services and technology to enhance the customer experience in the air and on the ground. Customers can check in for flights, print boarding passes, check bags and review flight status at delta.com.

SOURCE Delta Air Lines

For press inquiries: Delta Corporate Communications, +1-404-715-2554, news archive at news.delta.com

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Delta Appoints Vice President for Latin America and Caribbean

Dec 9, 2010

ATLANTA, Dec. 9, 2010 /PRNewswire-FirstCall/ -- Delta Air Lines (NYSE: DAL) has appointed Nicolas Ferri to the newly created position of vice president – Latin America and the Caribbean effective Jan. 1, 2011.  Ferri will report to Delta President Ed Bastian.  

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Based in Atlanta, Ferri will oversee and direct all of Delta's commercial activities in the Latin America and Caribbean region, including long-term growth opportunities with SkyTeam partner Aeromexico, future codeshare partner GOL from Brazil, and the joint venture agreement with Air France KLM in Mexico.

Ferri joins Delta from the oneworld airline alliance where he has served as a vice president responsible for all alliance sales and marketing activities for commercial operations.  He started his career as a customer service agent for Pan Am in 1990 and joined United Airlines in 1992, where he became a sales manager.  Subsequently he held positions of increasing responsibility over a 10-year span in the U.S., Uruguay, Italy, Costa Rica, Taiwan, India, Philippines and Hong Kong.  He is fluent in English, German, Spanish and Italian.

"His reputation as an influencer and innovator will serve Delta well as he focuses on identifying strategic opportunities to improve our competitive and financial position in Latin America," said Bastian.

Ferri was educated in Uruguay and holds a bachelor's degree in law and social sciences.

Delta Air Lines serves more than 160 million customers each year. With an industry-leading global network, Delta and the Delta Connection carriers offer service to 358 destinations in 66 countries on six continents. Headquartered in Atlanta, Delta employs more than 75,000 employees worldwide and operates a mainline fleet of more than 700 aircraft. A founding member of the SkyTeam global alliance, Delta participates in the industry's leading trans-Atlantic joint venture with Air France-KLM and Alitalia. Including its worldwide alliance partners, Delta offers customers more than 13,000 daily flights, with hubs in Amsterdam, Atlanta, Cincinnati, Detroit, Memphis, Minneapolis-St. Paul, New York-JFK, Paris-Charles de Gaulle, Salt Lake City and Tokyo-Narita. The airline's service includes the SkyMiles frequent flier program, the world's largest airline loyalty program; the award-winning BusinessElite service; and more than 50 Delta Sky Clubs in airports worldwide. Customers can check in for flights, print boarding passes, check bags and review flight status at delta.com.

SOURCE Delta Air Lines

For press inquiries: Delta Corporate Communications, +1-404-715-2554

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Delta Names Holden Shannon Senior Vice President - Corporate Strategy and Real Estate

Nov 1, 2010

ATLANTA, Nov. 1, 2010 /PRNewswire-FirstCall/ -- Delta Air Lines (NYSE: DAL) today named Holden Shannon senior vice president – Corporate Strategy and Real Estate and a member of the airline's Corporate Leadership Team, a committee of Delta's most senior executives responsible for the airline's overall strategy. Prior to joining Delta, Shannon spent 15 years at Continental Airlines.

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Shannon's appointment is one of several organizational changes reflecting Delta's focus on investing in its product, improving the customer experience and continuing to strengthen its global network.  

"With our merger integration substantially complete, these strategic management changes reflect our focus on planning for Delta's future," said Richard Anderson, Delta's chief executive. "Holden will be an important member of our team as we execute Delta's global strategy."

A broadly experienced senior airline executive, Shannon most recently served as senior vice president – System Operations and Real Estate at Continental where he was responsible for the airline's operations control and flight dispatch, operational planning and analysis and crew scheduling, worldwide real estate and environmental programs.  Shannon holds a Master of Business Administration from Harvard University and a bachelor's degree in managerial studies from Rice University.  He will join Delta Nov. 1 and live in Atlanta with his wife and two children.

"A broadly experienced senior airline executive with a solid track record, Holden's strong personal character and management skills are consistent with Delta's values and principles," said Delta President Ed Bastian.

In addition to leading Delta's corporate strategy, Shannon will leverage his prior industry experience to oversee the completion of two new international facilities planned for Delta's largest international gateways at Atlanta and New York-JFK.  Delta recently announced plans for a $1.2 billion expansion of JFK's Terminal 4 to be completed by May 2013 and is working with the City of Atlanta on a new $1.4 billion international terminal at Hartsfield-Jackson Atlanta International Airport to be completed by April 2012.  Shannon will report to Delta President Ed Bastian.

With Shannon's addition, two long-time Delta leaders will move to new roles to support focus areas of the airline's long-term plan.

Wayne Aaron, who successfully led the project management office overseeing Delta's merger integration, will transition from his current role as vice president – Corporate Strategy and Business Development to vice president – Marketing Programs and Distribution Strategy, reporting to Tim Mapes, Delta's senior vice president – Marketing.  Aaron will lead Delta's electronic distribution strategy and support product innovation, focus city initiatives and other marketing efforts. He will play a critical role as Delta focuses on improving the customer experience, with an investment of more than $2 billion in full-flat beds on trans-oceanic aircraft, expanded in-flight entertainment, new Sky Clubs and new international terminals planned over the next three years.

Jeff Arinder, who currently serves as Delta's managing director – Network Strategy, will be promoted to vice president – Corporate Strategy and Business Development, reporting to Holden Shannon. John Boatright, vice president – Corporate Real Estate, also will report to Shannon.

"Together we executed the industry's largest, and most successful, merger," Bastian said in a memo to employees. "I look forward to turning this energy toward our renewed commitment to investing in product and customer service as we continue to build a better airline for our employees, shareholders and customers."  

Delta Air Lines serves more than 160 million customers each year. With an industry-leading global network, Delta and the Delta Connection carriers offer service to 348 destinations in 64 countries on six continents. Headquartered in Atlanta, Delta employs more than 75,000 employees worldwide and operates a mainline fleet of more than 700 aircraft. A founding member of the SkyTeam global alliance, Delta participates in the industry's leading trans-Atlantic joint venture with Air France-KLM and Alitalia. Including its worldwide alliance partners, Delta offers customers more than 13,000 daily flights, with hubs in Amsterdam, Atlanta, Cincinnati, Detroit, Memphis, Minneapolis-St. Paul, New York-JFK, Paris-Charles de Gaulle, Salt Lake City and Tokyo-Narita. The airline's service includes the SkyMiles frequent flier program, the world's largest airline loyalty program; the award-winning BusinessElite service; and more than 50 Delta Sky Clubs in airports worldwide. Customers can check in for flights, print boarding passes, check bags and review flight status at delta.com.

SOURCE Delta Air Lines

For press inquiries: Delta Air Lines Corporate Communications, +1-404-715-2554, news archive at news.delta.com

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Delta Names Richard B. Hirst Executive Vice President and Chief Legal Officer

Apr 29, 2013

ATLANTA, April 29, 2013 /PRNewswire/ -- Delta Air Lines (NYSE: DAL) has promoted Richard "Ben" Hirst to the position of executive vice president and chief legal officer, effective immediately. In his new role, Hirst will continue reporting to Delta CEO Richard Anderson.

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Reporting to Hirst will be Andrea Newman, senior vice president – Government Affairs, Robert Rivkin, senior vice president and deputy general counsel – International and Regulatory Affairs and Peter Kenney, vice president – Deputy General Counsel.

"Ben is a seasoned professional who has provided strong legal and regulatory leadership for Delta's strategic initiatives," Anderson said. "Ben is a savvy counselor and a fine contributor to our success."

In his most recent position as senior vice president and general counsel, Hirst oversaw Delta's legal and government affairs strategy in advocating for U.S. policy changes to allow the nation's airlines to compete effectively in a global marketplace. He also was a key member of the team responsible for the slot swap transaction which enabled Delta's 2012 expansion at New York's LaGuardia Airport. Hirst has continued to be instrumental in working with the U.S. Department of Transportation, the U.S. Department of Justice and other authorities in finalizing Delta's joint venture and alliance partnerships.

Before being appointed to a leadership position at Delta in 2008, Hirst served as Northwest Airlines' senior vice president – Corporate Affairs and General Counsel since 2007, where he was responsible for the company's legal affairs and communications. Prior to that, he held leadership positions including executive vice president and chief legal officer of KB Home, executive vice president and general counsel of Burger King Corporation, general counsel of the Minnesota Twins, senior vice president and general counsel of Northwest Airlines during an earlier stint and vice president, general counsel and secretary at Continental Airlines.

In addition to his corporate experience, Hirst's background also includes serving as associate professor of Law at the University of Puget Sound Law School in Tacoma, Wash., and assistant to the director of International and Domestic Aviation for the Civil Aeronautics Board during the deregulation of the airline industry. In his early career Hirst was in private law practice in Vermont, served as a law clerk in U.S. District Court in Vermont and was a reporter for the Providence Journal-Bulletin in Rhode Island.

Hirst graduated from Harvard College in 1969 and Harvard Law School in 1972.

Delta Air Lines serves more than 160 million customers each year. Delta was named by Fortune magazine as the most admired airline worldwide in its 2013 World's Most Admired Companies airline industry list, topping the list for the second time in three years. With an industry-leading global network, Delta and the Delta Connection carriers offer service to 313 destinations in 57 countries on six continents. Headquartered in Atlanta, Delta employs nearly 80,000 employees worldwide and operates a mainline fleet of more than 700 aircraft. The airline is a founding member of the SkyTeam global alliance and participates in the industry's leading trans-Atlantic joint venture with Air France-KLM and Alitalia. Including its worldwide alliance partners, Delta offers customers more than 15,000 daily flights, with hubs in Amsterdam, Atlanta, Cincinnati, Detroit, Memphis, Minneapolis-St. Paul, New York-LaGuardia, New York-JFK, Paris-Charles de Gaulle, Salt Lake City and Tokyo-Narita. Delta is investing more than $3 billion in airport facilities and global products, services and technology to enhance the customer experience in the air and on the ground.  Additional information is available on delta.com, Twitter @Delta, Google.com/+Delta and Facebook.com/delta.

SOURCE Delta Air Lines

For press inquiries: Delta Corporate Communications, 404-715-2554, news archive at news.delta.com

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Delta Promotes Internal Leaders to Senior Positions

Dec 16, 2010

ATLANTA, Dec. 16, 2010 /PRNewswire-FirstCall/ -- Delta Air Lines (NYSE: DAL) today announced that it has promoted from vice president to senior vice president two leaders integral to the airline's long-term business strategy. Neel Shah has been named senior vice president and chief cargo officer and Chris Collette has been named senior vice president – Supply Chain Management.

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Shah, 41, will continue to lead Delta's cargo division, overseeing the company's nearly $1 billion freight and mail business. His promotion from vice president to senior vice president acknowledges the company's commitment to continuing to build a world-class cargo business that leverages the size and scope of Delta's global network. He will continue reporting to Delta President Ed Bastian.

"Neel has transformed Delta's cargo division into one of the world's most extensive cargo operations, with industry-leading processes and technology to serve our customers," said Delta Chief Executive Officer Richard Anderson. "Under his leadership, the Delta Cargo brand has moved from being one among the pack, to being a respected industry leader."

Shah joined Delta in January 2008 from United Airlines Cargo where he served as vice president – Sales and Marketing. He serves on the Air Transport Association's Executive Cargo Council, the SkyTeam Cargo Executive Board, and is an executive appointee of Gov. Sonny Perdue to the Georgia State Workforce Investment Board and the Georgia Department of Transportation Private Sector Advisory Committee. Shah holds a Master of Business Administration from Columbia University and a bachelor's degree from Swarthmore College.

Chris Collette, 48, heads Delta's supply chain management organization. During his tenure as vice president – Supply Chain Management, he has created a robust supplier performance management process and continues to enhance Delta's focus on growing supplier diversity around the world. In support of Delta's $2 billion investment in upgraded customer products, services and facilities, he is playing a lead role in vendor identification and contracting. Collette reports to Steve Gorman, Delta's executive vice president and chief operating officer.

"Chris' promotion to senior vice president not only reflects the tangible results he has delivered, but also the leadership he has shown in effectively managing Delta's more than $15 billion global supply chain for goods and services," Anderson said. "He has maintained a diligent focus on overseeing Delta's vendor partnerships with suppliers large and small around the globe."

Before joining the supply chain management team, Collette held positions of increasing responsibility at Northwest Airlines since 1990. Collette serves as a board member for Aeroxchange, Delta's e-commerce provider, and is a board member of the Crohn's and Colitis Foundation of America. Collette received a bachelor's degree in finance from the University of St. Thomas.

"These promotions reflect the internal bench strength and caliber of talent within the Delta executive team, leading Delta's more than 80,000 professional men and women worldwide," Anderson said.

Delta Air Lines serves more than 160 million customers each year. With an industry-leading global network, Delta and the Delta Connection carriers offer service to 358 destinations in 66 countries on six continents. Headquartered in Atlanta, Delta employs more than 75,000 employees worldwide and operates a mainline fleet of more than 700 aircraft. A founding member of the SkyTeam global alliance, Delta participates in the industry's leading trans-Atlantic joint venture with Air France-KLM and Alitalia. Including its worldwide alliance partners, Delta offers customers more than 13,000 daily flights, with hubs in Amsterdam, Atlanta, Cincinnati, Detroit, Memphis, Minneapolis-St. Paul, New York-JFK, Paris-Charles de Gaulle, Salt Lake City and Tokyo-Narita. The airline's service includes the SkyMiles frequent flier program, the world's largest airline loyalty program; the award-winning BusinessElite service; and more than 50 Delta Sky Clubs in airports worldwide. Customers can check in for flights, print boarding passes, check bags and review flight status at delta.com.

SOURCE Delta Air Lines

For press inquiries: Delta Corporate Communications, +1-404-715-2554

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Delta Names Tad Hutcheson Vice President - Community and Public Affairs

Nov 29, 2011

ATLANTA, Nov. 29, 2011 /PRNewswire/ -- Delta Air Lines (NYSE: DAL) today named Tad Hutcheson vice president – Community and Public Affairs, where he will oversee the airline's global strategy to enhance its leadership position in the communities it serves.

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Prior to joining Delta, Hutcheson served as vice president of Marketing and Sales for AirTran Airways. He had worked for Delta's planning and marketing departments prior to leaving the company in 1995.

"Tad is well known for his track record in community engagement, and he brings a wealth of experience to Delta," said Tim Mapes, Delta's senior vice president – Marketing. "We're excited to have Tad returning to Delta for this vital community leadership position."

Hutcheson, 44, will report to Mapes. An airline industry veteran, Hutcheson served as director of strategic planning and, later, vice president of marketing for KIWI International Air Lines prior to joining AirTran.

A native of Chattanooga, Tenn., and a current resident of Atlanta, Hutcheson is deeply involved in the community. He currently serves on the boards of the Atlanta Business League, Atlanta Police Foundation, Atlanta Sports Council, Junior Achievement of Georgia, Leadership Atlanta, the Atlanta Symphony Orchestra, Central Atlanta Progress, the Georgia Chamber of Commerce and the Metro Atlanta Chamber of Commerce, and he is a member of the Downtown Atlanta Rotary Club.

Delta is currently celebrating its 70th year as Atlanta's hometown airline.

Hutcheson holds a Bachelor of Arts degree from King College, and a Master of Business Administration from Wake Forest University. He also completed international marketing studies at St. Peter's College, Oxford University, and the International Business Institute in Europe.

Delta Air Lines serves more than 160 million customers each year, and was named by Fortune magazine as the most admired airline worldwide in its 2011 World's Most Admired Companies airline industry list. With an industry-leading global network, Delta and the Delta Connection carriers offer service to 335 destinations in 59 countries on six continents. Headquartered in Atlanta, Delta employs 80,000 employees worldwide and operates a mainline fleet of more than 700 aircraft. A founding member of the SkyTeam global alliance, Delta participates in the industry's leading trans-Atlantic joint venture with Air France-KLM and Alitalia. Including its worldwide alliance partners, Delta offers customers more than 13,000 daily flights, with hubs in Amsterdam, Atlanta, Cincinnati, Detroit, Memphis, Minneapolis-St. Paul, New York-JFK, Paris-Charles de Gaulle, Salt Lake City and Tokyo-Narita. The airline's service includes the SkyMiles frequent flier program, a world-class airline loyalty program; the award-winning BusinessElite service; and more than 50 Delta Sky Clubs in airports worldwide. Delta is investing more than $2 billion through 2013 in airport facilities and global products, services and technology to enhance the customer experience in the air and on the ground. Customers can check in for flights, print boarding passes, check bags and review flight status at delta.com.

SOURCE Delta Air Lines

For press inquiries: CONTACT: Delta Corporate Communications, +1-404-715-2554, news archive at news.delta.com

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Delta Taps Mike Medeiros to Head Seattle

Aug 16, 2013

SEATTLE, Aug. 16, 2013 /PRNewswire/ -- Delta Air Lines (NYSE: DAL) has named Mike Medeiros vice president – Seattle effective Sept. 1, 2013, as Delta continues to expand its international gateway in this key business market. Medeiros will have responsibility for managing Delta's overall Seattle strategy, which encompasses expanding airport operations, alliance partnerships, such as Alaska Airlines, corporate customers and government and community involvement.

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"Mike's extensive industry knowledge and experience will compliment the efforts of Delta's 1,800 employees and our alliance partners as we strive to build the premier global network in the Pacific Northwest," said Delta CEO Richard Anderson. "His values and understanding of Delta's unique culture make him an excellent ambassador in the Seattle market as we continue to grow our roots in the community."

Medeiros most recently served as vice president–Global Human Resources and Talent Development, where he dedicated much of his attention to employee relations, with a heavy focus on maintaining the special relationship Delta has with its employees. He led a team of professionals deployed across the globe who provide leadership, coaching and support to both Delta leadership and frontline employees.

During his career at Delta, Mike has also been a key leader in operations, including his previous assignment where he was responsible for Delta's New York operation, while based at John F. Kennedy International Airport. Under his leadership, Delta's JFK hub saw significant operational improvements in the areas of safety, on-time, customer service and baggage performance, built on a culture of continuous improvement.

Medeiros joined Delta as an Airport Customer Service agent in Raleigh-Durham, N.C., just prior to graduating from North Carolina State University where he earned a BA degree in Political Science. He later graduated from Auburn University with a Masters in Business Administration. 

Since May, Delta service in Seattle has expanded from 33 peak-day departures to 13 destinations to its current schedule of 44 peak-day departures to 18 destinations. Last month Delta announced new nonstop service to London-Heathrow beginning in March 2014. Delta has also invested $14 million in its facilities at Seattle-Tacoma International Airport, including its recently completed lobby renovations, new Delta Sky Club, Sky Priority services, new gate area power recharging stations and expanded ticket counters.

Delta Air Lines serves more than 160 million customers each year. Delta was named by Fortune magazine as the most admired airline worldwide in its 2013 World's Most Admired Companies airline industry list, topping the list for the second time in three years. With an industry-leading global network, Delta and the Delta Connection carriers offer service to 327 destinations in 63 countries on six continents. Headquartered in Atlanta, Delta employs nearly 80,000 employees worldwide and operates a mainline fleet of more than 700 aircraft. The airline is a founding member of the SkyTeam global alliance and participates in the industry's leading trans-Atlantic joint venture with Air France-KLM and Alitalia. Including its worldwide alliance partners, Delta offers customers more than 15,000 daily flights, with hubs in Amsterdam, Atlanta, Cincinnati, Detroit, Memphis, Minneapolis-St. Paul, New York-LaGuardia, New York-JFK, Paris-Charles de Gaulle, Salt Lake City and Tokyo-Narita. Delta is investing more than $3 billion in airport facilities and global products, services and technology to enhance the customer experience in the air and on the ground. Additional information is available on delta.com, Twitter @Delta, Google.com/+Delta and Facebook.com/delta.

SOURCE Delta Air Lines

For press inquiries: Delta Corporate Communications, 404-715-2554

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Delta names Carlos E. Hernandez as Director for Mexico

Aug 22, 2012

MEXICO, D.F., August 22, 2012 – Delta Air Lines (NYSE: DAL) has named Carlos E. Hernandez as Director for Mexico, effective Sept. 10, 2012. Under this position, he will report to Nicolas Ferri, Delta Vice President for Latin America and the Caribbean, taking the responsibility of overseeing Delta’s commercial development in Mexico, the strategic local Joint Venture with Air France, KLM and Alitalia; as well as the commercial implementation of Delta´s partnership with AeroMexico.

“This new position continues to solidify our leadership team throughout Latin America and Caribbean, and bolster our work to advance Delta as the leading U.S. airline in the region”, said Nicolas Ferri, Delta Vice President for Latin America and the Caribbean. “Carlos is one of the most respected individuals in the travel trade in Mexico and we are looking forward to having him join our accomplished Mexico team to further strengthen and develop our customer proposition in the country”.

Prior to joining Delta, Hernandez served as Commercial Director and Country Director for United Airlines. He also held a variety of positions with Continental in Central America including Revenue Management and Sales. He joined the airline industry in 1994 after successful leadership roles in Central America with Saatchi&Saatchi, Exxon and Johnson & Johnson. He has also worked for KLM and Mexicana de Aviacion.

A native of Guatemala, Carlos holds a Business Degree from the Universidad Mariano Galvez de Guatemala and is a member of the Board of Directors for the American Chamber of Commerce in Mexico.

In the last 25 years, Mexico has established itself as one of the pillars for Delta’s growth in Latin America. Its expansion in the country has also been driven through the strengthening of alliances with key partners. Currently, Delta offers flights to and from Mexico’s three leading business centers; Mexico City, Guadalajara and Monterrey, as well as eight beach destinations: Puerto Vallarta, Acapulco, Cancún, Cozumel, Ixtapa-Zihuatanejo, Los Cabos, Manzanillo and Mazatlán, with connections to Delta’s hubs in the United States. The Joint Venture with Air France, KLM and Alitalia as well as the strong partnership with Mexico’s leading carrier, AeroMexico, create a strong customer proposition to and from this important market.

About Delta Air Lines

Delta is working to become the best U.S. carrier in Latin America and the Caribbean. As part of that goal Delta has established a long-term exclusive alliance with GOL Linhas Aereas Inteligentes investing more than US $100 million in GOL. Likewise, Delta has invested more than US $65 million in Aeroméxico as part of a long-term exclusive commercial alliance and entered a code sharing agreement with Aerolíneas Argentinas solidifying its footprint in Latin America.  Executive Travel magazine recognized Delta with the Gold Leading Edge Award for the Best Flight Experience to Mexico. Delta provides service in Hartsfield-Jackson Atlanta International Airport reaching out to 32 countries and 54 destinations in the region offering more than 1,000 weekly flights between Latin America and the U.S. Spanish speaking Delta customers can receive real-time, on-the-go travel assistance in Spanish and Portuguese through its Twitter channels @DeltaAssist_ES  and @DeltaAjuda 9 a.m. to 10 p.m. EST.

Delta Air Lines serves more than 160 million customers each year. During the past year, Delta was named domestic “Airline of the Year” by the readers of Travel Weekly magazine, was named the “Top Tech-Friendly U.S. Airline” by PCWorld magazine for its innovation in technology and won the Business Travel News Annual Airline Survey. With an industry-leading global network, Delta and the Delta Connection carriers offer service to more than 330 destinations in 61 countries on six continents. Headquartered in Atlanta, Delta employs 80,000 employees worldwide and operates a mainline fleet of more than 700 aircraft. A founding member of the SkyTeam global alliance, Delta participates in the industry’s leading trans-Atlantic joint venture with Air France-KLM and Alitalia. Including its worldwide alliance partners, Delta offers customers more than 13,000 daily flights, with hubs in Amsterdam, Atlanta, Cincinnati, Detroit, Memphis, Minneapolis-St. Paul, New York-LaGuardia, New York-JFK, Paris-Charles de Gaulle, Salt Lake City and Tokyo-Narita. The airline’s service includes the SkyMiles frequent flier program, a world-class airline loyalty program; the award-winning BusinessElite service; and more than 50 Delta Sky Clubs in airports worldwide. Delta is investing more than $3 billion through 2013 in airport facilities and global products, services and technology to enhance the customer experience in the air and on the ground. Customers can check in for flights, print boarding passes, check bags and review flight status at delta.com.

For press inquiries: Delta Corporate Communications 404-715-2554 News archive at news.delta.com

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Airline Strategy Awards Honor Delta CEO for Successful Merger

Jul 19, 2010

LONDON, July 19 /PRNewswire-FirstCall/ -- Delta Air Lines' (NYSE: DAL) Chief Executive Officer Richard Anderson has been recognized by industry trade magazine "Airline Business" and global executive search firm Spencer Stuart with the 2010 Airline Strategy Award for Executive Leadership for his efforts to successfully merge Delta and Northwest Airlines.  

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"The scale of the merger and skill required for this merger has been incomparable," said Mark Pilling, editor of Airline Business. "Delta has so far executed a near-textbook merger that included getting labor buy-in from the start – that was a massively significant step."

"Delta's swift and smooth merger integration took a great deal of hard work, planning and focus," said Anderson in a recorded acceptance played last night at a gala dinner in London.  "We couldn't have succeeded if not for Delta people. I'm honored tonight to accept the Executive Leadership Award on behalf of the more than 70,000 Delta people around the globe who made our merger a success."

Four Delta employees, along with Perry Cantarutti, Delta's senior vice president of Europe, Middle East and Africa, were at the event to accept the award. Representing Delta employees worldwide were Jill Gosling, an Airport Customer Service agent, Flight Attendant Julie Alexander-Nixon, Flight Attendant Lisa Cohen and First Officer Jerrad Boren. With the company's financial results announcement scheduled in Atlanta today, Anderson was unable to accept the award in person.  

Airline Strategy Award winners are chosen by an independent panel of industry experts chaired by the Airline Business Editor and facilitated by Spencer Stuart. Judges include Sir Rod Eddington, non-executive chairman for Australia and New Zealand at JP Morgan and former CEO of British Airways; Jeffrey Katz, former president and chief executive of Swissair and founding chairman and chief executive of Orbitz; Professor Rigas Doganis, author of several books on air transport; Peter Harbison, managing director of the Centre for Asia Pacific Aviation; Joe Leonard, former chairman and chief executive officer of AirTran airways; and Chris Tarry, one of the most highly rated aviation analysts in the London market.

Delta closed its merger with Northwest Airlines in October 2008. Within 18 months the airline introduced a combined frequent flyer program, created consistent branding at airports worldwide, issued Delta uniforms to all customer-facing employees and integrated reservations systems, making every flight a Delta flight and every customer a Delta customer.  The airline achieved its single operating certificate in December 2009.

Delta Air Lines serves more than 160 million customers each year. With its unsurpassed global network, Delta and the Delta Connection carriers offer service to 369 destinations in 67 countries on six continents. Headquartered in Atlanta, Delta employs more than 70,000 employees worldwide and operates a mainline fleet of more than 700 aircraft. A founding member of the SkyTeam global alliance, Delta participates in the industry's leading trans-Atlantic joint venture with Air France KLM and Alitalia. Including its worldwide alliance partners, Delta offers customers more than 13,000 daily flights, with hubs in Amsterdam, Atlanta, Cincinnati, Detroit, Memphis, Minneapolis-St. Paul, New York-JFK, Paris-Charles de Gaulle, Salt Lake City and Tokyo-Narita. The airline's service includes the SkyMiles frequent flier program, the world's largest airline loyalty program; the award-winning BusinessElite service; and more than 45 Delta Sky Clubs in airports worldwide. Customers can check in for flights, print boarding passes, check bags and review flight status at delta.com.

SOURCE Delta Air Lines

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Delta Air Lines Board of Directors Names Edward H. Bastian as Newest Member

Feb 9, 2010

ATLANTA, Feb. 9 /PRNewswire-FirstCall/ -- Delta Air Lines' (NYSE: DAL) board of directors named Edward H. Bastian, currently president of Delta, as its newest member.  

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"We are pleased to welcome Ed to the Delta board," said Daniel A. Carp, chairman of the board for Delta Air Lines.  "Ed's track record speaks for itself. He is a valuable member of the Delta leadership team, and we look forward to benefiting from his insight, superior management skills and broad range of expertise."

In addition to his role as president, Bastian served as chief executive officer of the Northwest Airlines entity until the airlines merged at the end of last year.  Prior to that, he served as the chief financial officer for Delta, a role in which he led the airline through one of the largest and most successful Chapter 11 restructuring cases in U.S. history.

A 1979 graduate of St. Bonaventure University with a bachelor's degree in business administration, Bastian serves on the board of directors of Habitat for Humanity International and Woodruff Arts Center in Atlanta.  

Daniel A. Carp will remain chairman of the 13 member board, continuing Delta's current governance practice of having a non-Delta executive as chairman of the board of directors.  Richard H. Anderson will continue to serve as chief executive officer and as a member of the board of directors.

Delta Air Lines, the world's No. 1 airline, serves more than 160 million passengers each year. With its unsurpassed global network, Delta and the Delta Connection carriers offer service to 367 destinations in 66 countries on six continents. Delta employs more than 70,000 employees worldwide and operates a mainline fleet of nearly 800 aircraft. A founding member of the SkyTeam global alliance, Delta participates in the industry's leading trans-Atlantic joint venture with Air France KLM. Including its worldwide alliance partners, Delta offers customers more than 16,000 daily flights, with hubs in Amsterdam, Atlanta, Cincinnati, Detroit, Memphis, Minneapolis-St. Paul, New York-JFK, Paris-Charles de Gaulle, Salt Lake City and Tokyo-Narita. The airline's service includes the SkyMiles frequent flier program, the world's largest airline loyalty program; the award-winning BusinessElite service; and more than 50 Delta Sky Clubs in airports worldwide. Customers can check in for flights, print boarding passes, check bags and review flight status at delta.com.

SOURCE Delta Air Lines

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Delta Introduces Full Flat-Bed Seats between Zurich and Atlanta

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Delta Announces New Saturday Seasonal Flights from Pittsburgh and Indianapolis to Nassau

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Delta Air Lines to Start Second Daily Flight Servicing Atlanta-Sao Paulo

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Delta Air Lines Introduces Full Flat-Bed Seats on Flights

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GOL and Delta Achieve Alliance Milestones

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Delta Presents International Travel and Tourism Blogger Panel at Puerto Rico BloggerCon 2013

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Delta Introduces Full Flat-Bed Seats between Barcelona and New York, JFK

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Delta Continues Expansion in Mexico with Two New Flights to Leon

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Delta Announces New Saturday Seasonal Flight from Pittsburgh and Cincinnati to Punta Cana

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Delta Announces New Saturday Seasonal Flight from Indianapolis to Montego Bay

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How Is It Possible That Shares of United Continental Are Soaring?

United Continental (NYSE: UAL  ) stock has gone on a stunning run in the past week and a half. It traded around the $31 level for most of October, but since the carrier reported Q3 earnings on Oct. 24, it has jumped more than 15%, even hitting a new 52-week high at $36.80 on Monday.

United Continental one-month price chart. Data by YCharts.

The odd thing is that United's earnings report was dreadful. Revenue and EPS both fell short of analysts' reduced expectations. United is also projecting that cost increases for 2013 will come in at the high end of the original guidance range, while Q4 revenue trends are quite weak.

Right now, the market doesn't want to accept that United's problems are serious. The general attitude is well represented by airline analyst Mike Linenberg, who recently told clients that while United missed expectations in 2013, the company is still likely to catch up to the competition in the "long run." However, I believe United's high cost structure will keep United at the bottom of the industry in terms of profitability indefinitely.

The revenue premium disappears
Continental Airlines was historically known for having superior service compared to the other legacy carriers. By catering to deep-pocketed business travelers, Continental earned a revenue premium over competitors. The merger with United was supposed to improve that revenue premium over time by creating the top route network in the industry.

The United-Continental merger was supposed to boost the company's revenue premium. Photo: United Airlines.

This strategy has not gone according to plan. In the first nine months of 2011, United's passenger revenue per available seat mile, or PRASM, was $0.1295. In that same period, No. 2 carrier Delta Air Lines (NYSE: DAL  ) generated PRASM of $0.1282. United's revenue premium over Delta was about 1%.

By contrast, in the first nine months of 2013, United's PRASM has improved slightly to $0.1354, while PRASM has jumped to $0.1418 at Delta. In other words, whereas United had a 1% revenue premium over Delta Air Lines in 2011, it now has a nearly 5% revenue deficiency. Other carriers have also posted better unit revenue performance than United over the last two years.

United's underperformance will only get worse in the near term. While other airlines have provided positive revenue outlooks for Q4 -- for example, Delta expects a 2% PRASM increase in October followed by strong performance over the holidays -- United recently projected that PRASM could be down as much as 2% year over year this quarter.

Some of United's revenue problems are due to temporary issues. For example, the company had underestimated the strength of last-minute demand for tickets, and so it sold too many advance tickets at lower price points. However, while United may climb back to revenue parity with Delta (and the new American Airlines, assuming its merger with US Airways (NYSE: LCC  ) is eventually approved) over time, there is no reason to believe its revenue premium will return.

Bloated costs
As bad as the revenue trajectory has been for United, the company's cost structure is a bigger threat to its long-term success. Through the first nine months of 2013, its non-fuel unit costs (excluding profit sharing and other special items) totaled $0.0954 per available seat mile. This was 5% higher than the comparable figure for Delta.

Most of this cost gap has opened up this year. United's non-fuel unit costs will rise 6%-6.5% this year, up from an initial estimate of 4.5%-5.5% in January.

United's management has promised that unit cost growth will stay below the rate of inflation going forward. However, that may not be enough to keep pace with competitors, at least in the near term. American Airlines has cut costs drastically in the bankruptcy process, and expects to have the lowest costs among the legacy carriers following its expected merger with US Airways.

Meanwhile, Delta is in the midst of a $1 billion structural cost-reduction program, which is just starting to take effect. The centerpiece of that program is removing most 50-seat regional jets from its fleet and replacing them with much more efficient 76-seat regional jets and small mainline aircraft. This fleet change is just beginning this fall, and will continue through 2015.

United is also looking to reduce its reliance on small regional jets, but on a smaller scale. It also has very heavy capital commitments through 2015, with $6.4 billion in capital expenditures already committed in that time frame. This will probably prevent United from undertaking any additional fleet restructuring until 2016 or thereafter.

Lastly, United's salaries and related costs have jumped more than 9% this year, despite a decrease in capacity, primarily due to the implementation of a new pilot contract with substantial raises. United's labor costs will continue to rise going forward, albeit more slowly.

For example, last week, a variety of United work groups -- including ramp workers and customer service agents -- ratified a new contract that includes an immediate pay raise of 7%-29%, depending on position and seniority.

United still has to conclude joint collective bargaining agreements with its flight attendants and mechanics (roughly 30,000 workers in total). These new contracts will undoubtedly include pay raises. It's not clear if the pay raises for these groups are included in United's plans for keeping non-fuel cost growth below inflation.

Foolish bottom line
United stock has risen recently on the supposition that things can't get any worse. That's a very dangerous assumption to make. Not only has United's revenue premium evaporated over the last two years, but the company's costs are also rising faster than the industry average.

United will be hosting an investor day later this month, giving it a chance to present its long-term strategy for reversing these trends. I expect any new cost control initiatives to do no more than keep pace with competitors. That's not good enough, as it means that United will continue to have the highest cost structure and lowest profit margin in the airline industry.

Stocks to boost your bank account
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Still Time To Get On Board Spirit Airlines After Hitting Two-Year High

The airlines are flying high and so are their stocks. Spirit Airlines (SAVE) recently posted record third quarter results as revenue jumped double digits over a year ago. This Zacks Rank #1 (Strong Buy) is expected to see double digit earnings growth in both 2013 and 2014.

Spirit Airlines operates a low-cost airlines based on ultra-low base fares which allows customers to buy the extras they value. The company has a $9 Fare Club program that costs $59.95 per year but gives customers access to special low fares and deals on baggage fees.

Spirit operates about 250 flights to 50 destinations in the U.S., Caribbean and Latin America. It is one of the few airlines offering service from the United States to the expanding markets of Panama and Colombia.

On Oct 30, Spirit reported its third quarter results and blew by the Zacks Consensus by $0.10. Earnings were $0.79 compared to the Zacks Consensus of $0.69. It was the fourth earnings beat in a row.

Revenue jumped 33.4% to $456.6 million. Total revenue per available seat mile (“RASM”) was 12.55 cents, up 8.9% compared to the year ago quarter. The gain was due to higher load factors and higher average passenger yields. Adjusted pre-tax margin rose to 20.3%, the highest quarterly adjusted pre-tax margin in the company’s history. Spirit is expected to have strong double digit earnings growth of 57% in 2013 and another 20.2% in 2014.

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In the third quarter, Spirit added one new A320 aircraft, bringing its total fleet to 51 aircraft. It recently started several new routes, including Dallas/Fort Worth to Phoenix Sky Harbor, Phoenix Sky Harbor to Chicago and Minneapolis/St. Paul to Tampa.

After another solid earnings beat, shares jumped to new highs.

Even though shares are hitting new highs, the stock isn’t super expensive. It trades with a forward P/E of 18.9 but given its strong earnings growth it has a PEG ratio of just 0.7. A PEG under 1.0 usually indicates that a company is undervalued.

For investors looking for a way to play the low-cost airlines, Spirit is one to keep on the short list.

—
Tracey Ryniec is the value stock strategist for Zacks.com. She is also the editor of the Turnaround Trader and Value Investor services. You can follow her on twitter at @TraceyRyniec.

Each week Zacks’ Executive VP, Steve Reitmeister selects the most compelling trades and serves them up to you in a new program called Zacks Confidential. Click to learn more.

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Iceland’s Wow May Add Larger Jets to Bring U.S. Within Range

Icelandic carrier Wow Air said it may buy Boeing Co. (BA) 757 or Airbus SAS A321 jets to bring more U.S. routes within range of Reykjavik and help rebuild a tourism industry after the country’s financial collapse five years ago.

The discount carrier is evaluating flights to destinations in eastern North America and will tomorrow announce a service to Boston, its first route beyond Europe, founder and Chief Executive Officer Skuli Mogensen said in an interview.

Building a U.S. network would boost Wow’s share of the burgeoning Icelandic tourism market, which grew 20 percent last year, according to Mogensen, while opening up one-stop trans-Atlantic connections like those offered by Icelandair. Wow’s Airbus A320 planes have a range of 6,000 kilometers, 1,000 km less than Boeing’s 757-200ER, which can reach Florida.

“One of the reasons we’ve started with Boston is because it’s within range but we are actively looking at what aircraft would be the most suitable for new, longer destinations,” the CEO said. “I’m very excited about adding North America.”

Boeing’s 757, the world’s longest single-aisle plane and the mainstay of Icelandair’s fleet, is “perfectly suited” to U.S. operations though having ended production in 2004 is “getting outdated,” Mogensen said in London, where he was attending the World Travel Market industry expo.

The A321 is also an “interesting opportunity,” he said, which when equipped with extra fuel tanks, can match the A320’s range while carrying 185 passengers, about 15 short of the 757.

Wide-body aircraft aren’t attractive because they wouldn’t fit with European routes, Mogensen said. While the current fleet is hired from Bulgaria-based Air Via, which also provided pilots until Wow secured its own operating certificate last month, the carrier is keen to add new planes in line with low-cost norms and is exploring both direct purchases and leases of new jets.

Wow, which consolidated its position with the purchase of discount rival Iceland Express a year ago, operates its winter schedule with three A320s, serving eight cities. The airline had four planes in operation during the busier summer season, when it flew to 14 locations, and will move to five A320s next year, helping it to add services to Stockholm, as well as Boston.

Mogensen said he’s less focused on transfer traffic than Icelandair, which has 12 North American routes and 24 to Europe.

“I think Icelandair is now selecting new destinations that really have nothing to do with Iceland,” he said. “That’s where we differ. The main driver for us is the growth of tourism to Iceland, though I do think North America will also strengthen our European destinations using Iceland as a via-hub.”

Icelandair CEO Birkir Holm Guonasonsaid in an interview that new services must tap more than one traffic flow. The carrier has made a virtue of flying to smaller cities such as Edmonton and Halifax in Canada which don’t have direct European flights and from where the shortest path passes near Reykjavik.

“We always try to find a good mix of traffic to and from Iceland with trans-Atlantic traffic,” he said. “We’ve targeted secondary markets because we can offer an advantage in going via Iceland in terms of total journey time, and those routes also feed our European flights and allow us to add frequencies.”

Icelandair has 18 757s and will expand to 21 with planes from charter unit Loftleidir Icelandic, plus an order for 16 of Boeing’s re-engined 737 MAX 8 and 9 jets to be used for flights to less distant North American cities. The carrier serves Europe by day, with evening departures on U.S. and Canadian routes.

Wow’s destinations include London, Paris and Berlin, plus Poland and Lithuania, which provide migrant labor, a couple of Mediterranean resorts and a ski route to Salzburg, Austria.

Iceland’s turnaround since an $85 billion bank default in 2008 has been spurred by a weaker krona that’s made prices cheaper for visitors. An economic revival and volcanic eruptions have attracted adventurous travelers.

Wow faces competition from more established carriers including EasyJet Plc (EZJ), Norwegian Air Shuttle AS (NAS) and Air Berlin Plc (AB1), as well as from Icelandair, whose stock has surged 93 percent this year following a 63 percent gain in 2012 for a market value of 80 billion Icelandic kronur ($650 million).

Opening up North America will reduce Wow’s reliance on a crowded market while targeting a market that accounts for 25 percent of all Icelandic air travel, according to Mogensen.

Some 17 airlines fly Iceland-Europe during the summer and five or six continue operating through the winter, he said, while only Icelandair and Delta Air Lines Inc. (DAL) serve Iceland-U.S. routes in the summer and Icelandair alone in the winter.

To contact the reporter on this story: Christopher Jasper in London at cjasper@bloomberg.net

To contact the editor responsible for this story: Benedikt Kammel at bkammel@bloomberg.net

Enlarge image An employee works on the door assembly of an Airbus A321 aircraft inside a hangar at the company's production plant in Hamburg.

An employee works on the door assembly of an Airbus A321 aircraft inside a hangar at the company's production plant in Hamburg. Photographer: Michele Tantussi/Bloomberg

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The Biggest Growth Opportunity in the Airline Industry Just Arrived

Recently, Spirit Airlines (NASDAQ: SAVE  ) has been one of the most popular airlines among investors. Spirit is an "ultra-low-cost carrier" that aims to use low fares to stimulate demand for air travel among customers who might not otherwise fly. Through low costs and high fees for optional services, Spirit has made this business model exceptionally profitable. Strong demand has allowed it to grow revenue at a nearly 30% annual clip over the last three years.

Spirit Airlines stock has soared in 2013. Photo: Spirit Airlines.

However, an even bigger opportunity in the ultra-low-cost-carrier segment may lie south of the border. Volaris (NYSE: VLRS  ) is a Mexican ultra-low-cost carrier that recently executed an IPO that included U.S.-traded shares. Volaris is already the second-largest airline in Mexico and it has a huge opportunity to grow by stimulating demand for air travel in Mexico. As a result, Volaris looks like a compelling long-term-investing opportunity (albeit a risky one).

Changing the culture
Volaris' growth is powered by two factors. First, the company is not shy about challenging its competitors (most notably Aeromexico). In its prospectus, Volaris highlights its massive cost advantage relative to other major airlines in Latin America. It keeps costs low by using a single aircraft type (the Airbus A320), utilizing its aircraft heavily, and minimizing distribution costs.

As a result, Volaris has a cost per available seat mile, or CASM, of just $0.094. By contrast, CASM averages around $0.14 for its competitors. Aeromexico's CASM is even higher than the regional average, at $0.157. This gives Volaris a massive advantage on the routes where they compete. Volaris uses its cost advantage to offer lower fares and thereby grab market share.

Volaris has quickly grown to become the second-largest airline in Mexico. Photo: Volaris.

The second factor powering Volaris' growth is that air travel is still underutilized in Mexico. The company claims that even after adjusting for the disparity in household income, Americans fly several times more often than Mexicans.

That's not because Mexicans do not travel. Mexico has a thriving long-distance bus industry, which generated nearly 3 billion passenger segments in 2012. This includes an executive and luxury bus industry that accounted for 74.4 million passenger segments. Volaris' management believes that it can reduce airfares to a level that will convince many people to switch from these executive and luxury buses to air travel.

Early returns
Last week, Volaris reported its first quarterly results since going public. Revenue grew 11% due to capacity expansion, offset by lower unit revenue. Despite the unit revenue pressure, adjusted net income jumped 39% year over year to 319 million pesos (roughly $24 million). Net income was boosted by a 4.7% year-over-year reduction in CASM due to both fuel and non-fuel savings.

Recently, Volaris has had to offer even deeper discounts than it has historically due to a combination of slow economic growth in Mexico and more price competition from Aeromexico. While this has had a short-term impact on profitability, it is stimulating even more demand for air travel in Mexico, which is good for Volaris in the long run.

Moreover, Aeromexico cannot keep up its recent fare war. On the recent Volaris conference call, the company's management team pointed out that Aeromexico's domestic operating margin has plummeted from 16.1% in Q3 2011 to just 2.5% in Q3 2013. Clearly, Aeromexico is hurting much more than Volaris from the competitive environment.

Looking ahead
There are a few positive factors that should drive continued earnings growth for Volaris. First, the company has identified plenty of new markets that it can enter over time, and management is planning for a high-teens capacity growth rate.

Second, Volaris recently implemented a new reservations system that will reduce distribution costs by up to 50%. The new system has also enabled Volaris to start charging passengers for carry-on baggage. This practice was pioneered by Spirit in the U.S., and has since become a standard feature of U.S. ultra-low-cost carriers. This move will allow Volaris to make money with even lower base fares, helping it to continue to stimulate demand.

Foolish bottom line
Volaris is in a great position to dominate the Mexican air travel market over the long term. The ultra-low-cost-carrier model is already catching on, and as more Mexicans move into the middle class, demand for low-cost air travel is likely to skyrocket. Volaris already holds 23% of the domestic market, and that market share will continue to grow rapidly.

While I think Spirit Airlines is a great investment opportunity, too, Americans tend to have more disposable income and may be more likely to pay extra for an airline that offers more leg room, free carry-on baggage, etc. Despite all its growth, Spirit represents only 1% of the U.S. airline industry by revenue.

By contrast, Volaris has the opportunity to become a Ryanair of Mexico (or even, more broadly, Latin America). In a few decades, Volaris may be a ubiquitous presence in Latin America, due to its industry-leading, low-cost structure and position as the low-fare leader in a major developing economy. That's why Volaris may be the best airline out there for growth-oriented investors.

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Final Glance: Airlines companies

NEW YORK (AP) -- Shares of some top airlines companies were mixed at the close of trading:

Delta Air fell $.58 or 2.1 percent, to $26.88.

JetBlue Airways Corp. rose $.12 or 1.6 percent, to $7.64.

Southwest Airlines Co. fell $.07 or .4 percent, to $17.80.

US Airways Group fell $.28 or 1.2 percent, to $22.40.

United Continental Holdings Inc. fell $1.03 or 2.9 percent, to $34.49.

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Delta to Recognize Top Employees at Annual Chairman's Club Gala

ATLANTA, Nov. 6, 2013 /PRNewswire/ -- Delta Air Lines (DAL) tonight will welcome 100 employees into the ranks of its Chairman's Club, the airline's most prestigious honor which recognizes employees who embody Delta values and are distinguished by their contributions and exceptional service to customers and community. The 2013 Chairman's Club honorees will be celebrated tonight at Delta's annual gala at the Fox Theater in Atlanta.

(Logo:  http://photos.prnewswire.com/prnh/20090202/DELTALOGO)

"This has been a great year for Delta thanks to the exceptional performance of Delta people worldwide," said Richard Anderson, Delta's chief executive officer. "We say it all the time here -- Delta people cannot be replicated, and our Chairman's Club honorees represent the best of what Delta has to offer."

More than 10,000 Delta people from every division in the airline's worldwide operations were nominated by their colleagues this year and underwent a rigorous selection process for induction into Chairman's Club.

This year's honorees represent 30 cities in five countries and on average have 22 years of service at Delta. The most senior honoree has worked at Delta for 43 years. Honorees are heavily involved in fundraising efforts in their communities through Delta's Force for Global Good initiative and support many charitable causes.

The annual Chairman's Club gala is a celebratory evening that allows Delta's senior leaders to individually recognize honorees for their service to the airline. Honorees walk the red carpet across Peachtree Street in downtown Atlanta to the cheers of their colleagues before the ceremony begins inside the Fox.

The Chairman's Club is part of Delta's commitment to recognizing the people who care for its customers each day and continuing to build a great place to work.

See the full list of the 2013 honorees:

Delta Air Lines serves more than 160 million customers each year. Delta was named by Fortune magazine as the most admired airline worldwide in its 2013 World's Most Admired Companies airline industry list, topping the list for the second time in three years. With an industry-leading global network, Delta and the Delta Connection carriers offer service to 314 destinations in 58 countries on six continents. Headquartered in Atlanta, Delta employs nearly 80,000 employees worldwide and operates a mainline fleet of more than 700 aircraft. The airline is a founding member of the SkyTeam global alliance and participates in the industry's leading trans-Atlantic joint venture with Air France-KLM and Alitalia. Including its worldwide alliance partners, Delta offers customers more than 15,000 daily flights, with hubs in Amsterdam, Atlanta, Cincinnati, Detroit, Minneapolis-St. Paul, New York-LaGuardia, New York-JFK, Paris-Charles de Gaulle, Salt Lake City and Tokyo-Narita. Delta is investing more than $3 billion in airport facilities and global products, services and technology to enhance the customer experience in the air and on the ground. Additional information is available on delta.com, Twitter @Delta, Google.com/+Delta and Facebook.com/delta.

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N.Y. Diesel Gains as Delta Shuts Unit Amid Record-Low Stockpiles

Spot diesel fuel in New York Harbor strengthened relative to futures after Delta Air Lines Inc. (DAL) shut a unit at its Trainer refinery and regional stockpiles fell to the lowest seasonal level in more than two decades.

Ultra-low-sulfur diesel gained 0.08 cent to 0.08 cent a gallon above futures on the New York Mercantile Exchange at 1:54 p.m., according to data compiled by Bloomberg.

The differential expanded after Delta shut a diesel heater following a small fire Nov. 2 at the 185,000-barrel-a-day Pennsylvania refinery. The company is investigating the cause, said Adam Gattuso, a spokesman at the plant.

Stockpiles of diesel in the Central Atlantic region known as PADD 1B, including New York Harbor, slipped 1.9 million barrels to 18.8 million barrels in the week ended Nov. 1, the lowest level for the time of year in government data going back to 1990, according to Energy Information Administration data. That was the eighth consecutive decline.

Inventories dropped as refiners including Phillips 66 and PBF Energy Inc. carried out seasonal maintenance that reduced production and as Colonial Pipeline Co. allocated shipments on lines serving New Jersey.

The 3-2-1 crack spread in New York, a rough measure of refining margins for gasoline and diesel based on Brent oil in Europe, gained $1.27 to $8.19 a barrel, the highest level since Sept. 13, according to data compiled by Bloomberg.

To contact the reporter on this story: Christine Harvey in New York at charvey32@bloomberg.net

To contact the editor responsible for this story: Dan Stets at dstets@bloomberg.net

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Midday Glance: Airlines companies

NEW YORK (AP) -- Shares of some top airlines companies are mixed at 1 p.m.:

Delta Air fell $.18 or .7 percent, to $27.28.

JetBlue Airways Corp. rose $.06 or .8 percent, to $7.58.

Southwest Airlines Co. fell $.12 or .7 percent, to $17.75.

US Airways Group fell $.33 or 1.5 percent, to $22.35.

United Continental Holdings Inc. fell $.70 or 2.0 percent, to $34.82.

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JFK Airport Customs Kiosks Pay Off in Shorter Wait Times

Delta Air Lines Inc. (DAL)’s financing of automated passport-control kiosks at New York’s John F. Kennedy International Airport cut wait times in half a month into their use, according to U.S. Customs and Border Protection statistics.

The average wait for all time slots is now 16.6 minutes, down from 34.9 minutes in October 2012, according to agency data. The average maximum wait is now 58.2 minutes, down from 97 minutes a year ago.

“Cutting wait times in half is dramatic early evidence that automated kiosks work in relieving the unacceptably long wait times JFK has experienced,” said Joe Sitt, chairman of Global Gateway Alliance, a trade organization advocating for improvements at New York’s airports.

JFK is the busiest U.S. entry point for international passengers, according to the the Manhattan-based group. The alliance pushed Customs to install automated passport control after complaints of lengthy lines holding up travelers by as much as five hours. Delta’s decision to pay for the kiosks was one way private-industry partners are helping roll out the program, CBP said in September.

Congress and the administration of President Barack Obama need to allocate funds to hire more CBP officers, create ‘rapid response teams’ that would move between terminals as crowds form, and make more data on wait times available to the public, Sitt said.

During early morning periods the results were more dramatic. Between 7 a.m. to 8 a.m., passengers now wait an average of 11 minutes, down from 53 minutes in October 2012, according to agency data. Maximum wait times in that slot have dropped to 25 minutes, compared with 163 minutes a year ago.

“Now it’s time for CBP and Congress to bring the technology to all of our international terminals and implement a comprehensive solution,” Sitt said.

The delays at airports “hurts the brand and economy of New York and the U.S. as a whole,” he said.

Staffing shortages that customs officials blame on automatic U.S. budget cuts have extended waits to as long as five hours during peak times at the busiest airports, including JFK, the U.S. Travel Association said in a report Sept. 18.

Peak wait times reached a high of 4.5 hours at JFK in December 2012, the Washington-based group said. At Miami in April 2013, the peak wait times were 4.7 hours. Delays that long put as much as $95 billion of tourist spending at risk over the next five years, the group said.

Delta Chief Executive Officer Richard Anderson, whose company opened a $1.4 billion international terminal at JFK this year, has called the delays an “embarrassment” that discourages tourism and threatens U.S. economic growth.

To contact the reporter on this story: Jeff Plungis in Washington at jplungis@bloomberg.net

To contact the editor responsible for this story: Bernard Kohn at bkohn2@bloomberg.net

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U.S. FAA issues rule to enhance commercial pilot training

WASHINGTON, Nov 5 (Reuters) - The U.S. Federal Aviation Administration on Tuesday issued a final rule that it said would "significantly advance" the way commercial airline pilots are trained in the United States.

FAA administrator Michael Huerta said the goal was to give pilots "the skills and confidence to handle any situation they might encounter," including "events which although rare, can be catastrophic."

Much of the focus will be on handling crosswinds and gusty winds, as well operating aircraft in the event of the loss of automated systems, Huerta said at a press conference.

The final rule stems in part from the crash of Colgan Air flight 3407 in upstate New York in February 2009, which triggered a number of enquiries, and a subsequent Congressional mandate to enhance pilot training efforts.

The National Transportation Safety Board in 2010 determined that the accident, which killed all 49 people on board the plane, which was en route from Newark, New Jersey, to Buffalo, New York, was caused in part by the pilots' inability to respond properly to warnings of an aerodynamic stall.

"Today's rule is a significant advancement for aviation safety and U.S. pilot training," U.S. Transportation Secretary Anthony Foxx said.

Among other things, the final rule requires:

- Ground and flight training that enables pilots to prevent and recover from aircraft stalls and upsets;

- Use of data by air carriers to track remedial training for pilots with performance deficiencies, such as failing a proficiency check or unsatisfactory performance during flight training;

- Training for more effective pilot monitoring; and

- Enhanced runway safety procedure.

The plane in the February 2009 crash was a Colgan Air Bombardier Dash 8-400 regional jet; it was operating as a Continental Connection flight under a codeshare agreement with Continental Airlines.

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US Airways price target raised to $30 from $24 at Imperial Capital

Twitter prices above range to raise at least $1.8 billionReuters

(Reuters) - Twitter Inc priced its initial public offering above its expected range to raise at least $1.8 billion, …

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Early Glance: Airlines companies

NEW YORK (AP) -- Shares of some top airlines companies are up at 10 a.m.:

Delta Air rose $.07 or .3 percent, to $27.53.

JetBlue Airways Corp. rose $.11 or 1.4 percent, to $7.63.

Southwest Airlines Co. rose $.22 or 1.2 percent, to $18.09.

US Airways Group rose $.09 or .4 percent, to $22.77.

United Continental Holdings Inc. rose $.06 or .2 percent, to $35.58.

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[$$] AMR Can Fly Higher Yet

AMR Corp. (AAMRQ: OTCBB) By J.P. Morgan Securities ($9.68, Nov. 6, 2013) We are downgrading AMR to Neutral from Overweight but raising our price target to $10.50 from $9.50. Settlement momentum allows us to boost the probability of a merger ...

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AAR awarded $156M government contract renewal

Twitter prices above range to raise at least $1.8 billionReuters

(Reuters) - Twitter Inc priced its initial public offering above its expected range to raise at least $1.8 billion, …

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Bull Of The Day: Spirit

The airlines are flying high and so are their stocks. Spirit Airlines, Inc. (SAVE) recently posted record third quarter results as revenue jumped double digits over a year ago. This Zacks Rank #1 (Strong Buy) is expected to see double digit earnings growth in both 2013 and 2014.

Spirit Airlines operates a low-cost airline based on ultra-low base fares which allows customers to buy the extras they value. The company has a $9 Fare Club program that costs $59.95 per year but gives customers access to special low fares and deals on baggage fees.

Spirit operates about 250 flights to 50 destinations in the U.S., Caribbean and Latin America. It is one of the few airlines offering service from the United States to the expanding markets of Panama and Colombia.

Big Beat in the Third Quarter

On Oct 30, Spirit reported its third quarter results and blew by the Zacks Consensus by $0.10. Earnings were $0.79 compared to the Zacks Consensus of $0.69. It was the fourth earnings beat in a row.

Revenue jumped 33.4% to $456.6 million. Total revenue per available seat mile ("RASM") was 12.55 cents, up 8.9% compared to the year ago quarter. The gain was due to higher load factors and higher average passenger yields.

Adjusted pre-tax margin rose to 20.3%, the highest quarterly adjusted pre-tax margin in the company's history.

Spirit is expected to have strong double digit earnings growth of 57% in 2013 and another 20.2% in 2014.

In the third quarter, Spirit added one new A320 aircraft, bringing its total fleet to 51 aircraft. It recently started several new routes including Dallas/Fort Worth to Phoenix Sky Harbor, Phoenix Sky Harbor to Chicago and Minneapolis/St. Paul to Tampa.

Shares At 2-Year Highs

After another solid earnings beat, shares jumped to new highs.

Even though shares are hitting new highs, the stock isn't super expensive. It trades with a forward P/E of 18.9 but given its strong earnings growth it has a PEG ratio of just 0.7. A PEG under 1.0 usually indicates that a company is undervalued.

For investors looking for a way to play the low-cost airlines, Spirit is one to keep on the short list.

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Delta Air seeks $5.9M loan to renovate call center

MINNEAPOLIS (AP) -- Delta Air Lines wants a $5.9 million forgivable government loan to refurbish a call center in northern Minnesota that was mostly built with government money in the first place.

Delta's loan application says the call center in Chisholm employs 418 people. It says the renovation would add 107 more.

The loans are handled by a state agency called the Iron Range Resources & Rehabilitation Board. Commissioner Tony Sertich says the new loan is expected to be forgivable, too, as long as Delta meets job targets.

Northwest Airlines built the call center with a $9.7 million loan from the board in 1994. Of that, $1 million was repaid and the rest was forgiven. Delta Air Lines Inc. bought Northwest in 2008.

The new loan is scheduled to be considered Thursday.

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JPMorgan Downgrades AMR Corp as Odds of Merger Settlement Grow

Shares of AMR. Corp. (AAMRQ) have surged as the chances that its merger with US Airways (LCC) increase. But is all the good news priced into the stock?

Associated Press

It just might be, says JPMorgan’s Jamie Baker and Mark Streeter, who downgraded shares of AMR Corp. to Neutral from Overweight. They write:

[The] current value of AAMRQ implies a ~66% probability of a merger…Given recent settlement momentum, we are comfortable nudging our earlier 60% probability to the 70-75% range.

While our AAMRQ upside analysis is comparatively straightforward, the downside analysis is more difficult to assess. Even slight tweaks to multiples, the claims pool, intercompany issues and EBITDAR can produce significant swings in estimated standalone Q values (gyrating between $1.00 to as much as $6.00). In light of the 97% surge in the past month (vs. S&P 500 +4%) and the lack of clarity on downside, we feel that upside potential for AAMRQ needs to handily exceed the customary 25-30% that we look for in Overweight-rated airline names, even if we remain bullish in general.

Shares of AMR Corp. have dropped 3.5% to $9.31 today at 10:50 a.m., while US Airways is off 2% at $22.33. United Continental (UAL) has fallen 1.9% to $34.83 and Delta Airlines (DAL) is off 1% at $27.18.

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AAR Selected to Extend Airlift Support for U.S. Military

WOOD DALE, Ill., Nov. 6, 2013 /PRNewswire/ -- AAR (AIR) announces that the United States Transportation Command (USTRANSCOM) has exercised a renewal option valued at approximately $156 million for airlift support in Afghanistan through October 31, 2014.

The USTRANSCOM renewal extends AAR's mission-critical support of the U.S. military under a contract awarded in September 2010. AAR will meet the requirements using 10 rotor-wing aircraft from its fleet. The U.S.-based defense contractor transports people, cargo and mail for U.S. Department of Defense (DoD) and NATO operations in Afghanistan.

"We are proud of our role as the largest provider of airlift for the U.S. government and its allies in Afghanistan and to serve as an integral part of our nation's logistics capability," said Randy J. Martinez, President and CEO of AAR Airlift Group. "This renewal reflects the excellent work of our pilots and support teams and the confidence they have earned supporting USTRANSCOM and Department of Defense operations."

USTRANSCOM provides transportation solutions over air, land and sea in support of national security and non-governmental logistical requirements approved by the U.S. government and secretary of defense.

AAR's Airlift division offers expeditionary airlift services and specialized aircraft modifications that can be used to support national security and humanitarian relief operations. Under current contracts, the Company provides airlift for the Department of Defense in three regions around the world, transporting personnel, supplies and mail over land and at sea.

AAR, a global leader in aviation services and technology products for commercial and defense customers, will showcase its full range of capabilities at the Dubai Airshow, November 17-21, at Dubai World Central. AAR representatives will be available to brief reporters and bloggers on its Airlift and other services at its stand, #2118.

About AAR
AAR is a global aerospace and defense contractor that employs more than 6,000 people in 17 countries. Based in Wood Dale, Illinois, AAR supports commercial, government and defense customers through two operating segments: Aviation Services and Technology Products. AAR's services include inventory management and parts distribution; aircraft maintenance, repair and overhaul; and expeditionary airlift. AAR's products include cargo systems and containers; mobility systems and shelters; advanced aerostructures; and command and control systems. More information can be found at www.aarcorp.com.

This press release contains certain statements relating to future results, which are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995.  These forward-looking statements are based on beliefs of Company management, as well as assumptions and estimates based on information currently available to the Company, and are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results or those anticipated, including those factors discussed under Item 1A, entitled "Risk Factors", included in the Company's Form 10-K for the fiscal year ended May 31, 2013. Should one or more of these risks or uncertainties materialize adversely, or should underlying assumptions or estimates prove incorrect, actual results may vary materially from those described.  These events and uncertainties are difficult or impossible to predict accurately and many are beyond the Company's control.  The Company assumes no obligation to update any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events. For additional information, see the comments included in AAR's filings with the Securities and Exchange Commission.

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Did American Airlines And US Airways Get A Green Light To Merge?

On Monday, both US Airways (LCC) and American Airlines (OTC:AAMRQ) saw their shares rally sharply after talk that the government might actually be open for a settlement and it might give the two companies a conditional "green light" if they agree to make some concessions. This is the first time since the announcement of the DOJ lawsuit that the government is willing to negotiate as the court case is scheduled to start in a couple weeks.

When the Department of Justice first announced the lawsuit it was going to pursue against the two airline companies, some analysts downplayed it by saying that the government would end up sitting down with these companies and settling on terms. Back then, the government officials said that they had absolutely no interest in settling with the two companies and they wanted the merger to fall apart regardless of what concessions the airline companies could come up with.

On Monday, the U.S. attorney general Eric Holder said that the government would be fine with settling with the airline companies if they agree to give up on some take-off and landing spots in several airports including Reagan National at the nation's capital. This is the first time ever the government openly said it would be ok with the idea of a merger and the government's tone is a lot different than how it was a few months ago. As the government shutdown slowed the hand of the government, it probably found itself in a position that is difficult to defend in court.

The government will still look for solutions that are likely to alleviate its concerns, such as decreased competition, too much pricing power and too many spots to be held by the merged company in certain airports. For the next two weeks, negotiations will be going on to determine the best course of action and the best case scenario calls for a settlement before the court date.

It is very surprising to hear Mr. Holder talk about the case before the court date. A lot of people predicted that the government would be negotiating with the airline companies for a solution before the court date, but no one really expected the government to be vocal about it.

A lot of investors are taking this development as a green light from the government for the merger. The shares of American Airlines rallied by about 25% and US Airways appreciated by another 5% in the earlier hours of trading but ended the day up by only 1%. While I agree that this is a huge development, there is still a lot of work to do in the next 2 weeks before a settlement can be reached.

I have been covering this merger for nearly a year and US Airways has been one of my best performing stocks this year. In the last 52 weeks, the shares of US Airways rallied by 82% and since early 2011, investors saw the value of their shares appreciate by 410%. While some of the rally was fueled by the merger speculation, much of the rally could be attributable to the success of US Airways CEO Doug Parker. Under Mr. Parker's management, US Airways was able to grow its earnings by more than 300% in the last couple years. Even after multiplying in the last couple years, US Airways is still cheap with a trailing P/E of 8 and forward P/E of 7. This is why I kept insisting that the company was cheap regardless of whether the merger happened or not.

After the merger, each share of US Airways will become a share of the new American Airlines (the company's name will be American Airlines) and these shares will make up 28% of the new company. If the merger happens, the combined company is expected to generate $40 billion in revenues and $2-3 billion in net earnings. Even if we take a conservative P/E ratio of 8 to value this company, we would be looking at a new American Airlines that's worth $20 billion. If US Airways makes up 28% of the new company, this values US Airways at $5.6 billion, which is far above the company's current value of $4.4 billion. After the merger, the shares of US Airways should be worth $28-30. If the merger doesn't happen, US Airways should still be worth around $25, given its low valuation. The company's current market value is $4.4 whereas its cash and short term investments alone total $3.5 billion. I currently have some shares of US Airways in addition to some calls. I used to sell covered calls every month in order to increase my overall return (which brought my breakeven price to far below $10). However, I haven't done that recently. Regardless of the merger, US Airways continues to offer strong value to investors. The next couple weeks will be very busy and exciting for the management and shareholders of US Airways as the merger story will end one way or another.

Disclosure: I am long LCC. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. (More...)

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Delta Puts More Chips on Seattle Table

SEATTLE (TheStreet) -- Delta (DAL) is wasting no time bulking up in Seattle.

The carrier said Tuesday it will add two new Seattle destinations: Portland and San Diego. That would bring the total number of destinations to 18. Four daily San Diego non-stops will begin June 2, four daily Portland, Ore., non-stops will begin Sept. 2, and the number of summer seasonal flights to Anchorage, Alaska, will increase from one to two on June 5.

The competition involved in Delta's Seattle buildup, where code-share partner Alaska (ALK) already operates a hub with about 300 daily departures, is a hot topicin the airline industry. By next summer, Delta will have nine daily international departures from Seattle, including six to Asia, and it wants to support that with domestic feed.

Delta said last month it will add seven daily Seattle-San Francisco flights by June 2014; four daily Seattle-Las Vegas flights by April, bringing the total to five; and two daily Seattle-Los Angeles flights in June, bringing the total to seven. Alaska's reaction to the buildup was the subject of repeated questions on its third-quarter earnings call last month.

"As we move forward, there are going to be places where it's going to be in our interest to work with Delta and we're going to support them, (where) they're growing internationally," said Alaska CEO Brad Tilden. "And then there are places where they are growing in North-South markets that have been long-term core markets for Alaska Air Group (and) in those markets, we will compete and we'll defend what we've built over the next years."

On Tuesday, Delta said it would double mileage awards and qualification for its Medallion program, which enables upgrades, on all six of its Seattle-West Coast routes through Oct. 31, 2014.

"We have continued to strategically add service from key markets in an effort to support passenger demand for our expanding international destinations," said Mike Medeiros, Delta's vice president -- Seattle. "Delta's most recent additions will provide our customers with one-stop access to and from several of the top international and domestic destinations via our growing global gateway in Seattle." Delta currently operates 36 peak-day departures to 15 destinations from Seattle.

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United allowing wider use of electronic devices

CHICAGO (AP) -- United Airlines is allowing passengers to use portable electronic devices throughout domestic flights.

The move by United, the world's biggest airline, matches new policies at Delta, JetBlue and American.

United Continental Holdings Inc. said Wednesday that it expects to expand the gate-to-gate use of electronics to passengers on United Express regional flights by the end of the year.

Last week, the Federal Aviation Administration announced that it was relaxing rules that had required passengers to turn off devices while planes were below 10,000 feet. Voice calls from cellphones are still prohibited during flights including during taxiing, takeoffs and landings.

Chicago-based United said it will let passengers on its mainline planes use lightweight, handheld devices including tablets, e-readers and smartphones unless a crew member tells them otherwise, such as during low visibility. Laptops must still be securely stowed away during takeoff and landing, the airline said.

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