Customer Profile

Frontiers May 2013 Issue

CUSTOMER PROFILE After a strong performance last year, Delta Air Lines is flying high By Tim Bader BOEING FRONTIERS / MAY 2013 17 Fortune magazine called Delta Air Lines one of the Most Admired Companies in 2012, ranking it first in the airline industry. And in 2013, the airline is clearly still on the move. “It is a particularly exciting time to be at Delta given the momentum we have garnered,” said Richard Anderson, Delta’s chief executive officer. “We are running a better airline than at any other time in our history.” Delta made progress with several strategic initiatives to enhance customer service, strengthen market share and miti-gate fuel costs, according to Anderson. For example, the airline expanded at LaGuardia Airport in New York. It also announced a venture with Virgin Atlantic Airways, which greatly expands Delta’s presence at London Heathrow Airport. Delta focused on growing its Latin America presence with partners such as GOL and Aeromexico. Delta also made a bold move to control fuel costs by purchasing the Trainer refinery, near Philadelphia. The refinery is capable of processing 185,000 barrels per day. The airline is also taking two additional steps in its ongoing domestic fleet optimi-zation initiative, Anderson noted. This year, Delta will welcome two new mainline (non-regional fleet) airplane models, the Next- Generation 737-900ER (Extended Range) and the 717. Delta launched its domestic fleet revitalization in 2010, focusing on improving profitability while enhancing customer experience. “A key component of Delta’s strategy is making prudent investments for the future while maintaining our financial and capacity discipline,” Anderson explained. “With the Next-Generation 737-900ER, we can give our customers a superior in-flight experience while improving shareholder returns.” The 737-900ERs will primarily be replacing aging 757, 767 and Airbus A320 airplanes in Delta’s fleet. The 717s come to Delta through an agreement with Southwest Airlines and Boeing to acquire 88 717-200s currently in service with Southwest subsidiary AirTran Airways. The airplanes—a full-size twinjet manufactured by Boeing after its merger with McDonnell Douglas for the short-range 100-seat regional airline market—will offer an enhanced customer experience and greater cost efficiency compared with the small 50-seat regional jets they will replace, according to Anderson. The 717s and 737-900ERs are part of Delta’s investment in the customer experi-ence, Anderson said. That also includes investing more than $3 billion in technology, employee training, fleet upgrades and enhancements to airport facilities worldwide. But Delta’s success, Anderson pointed out, is ultimately a credit to its 80,000 employees. “Thanks to the hard work and dedica-tion of our employees worldwide, we are industry leaders in operational excellence, financial performance and customer satis-faction,” Anderson said. “Our investments in the customer experience continue to pay off, but it is the investment in our people where we see the results every day.” n tim.s.bader@boeing.com DELTA force “We are running a better airline than at any other time in our history.” – Richard Anderson, chief executive officer, Delta Air Lines GRAPHIC: Delta is scheduled to receive its first Next-Generation 737-900ER (Extended Range) in September. BOEING PHOTO: DELTA AIR LINES


Frontiers May 2013 Issue
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