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Delta Air Lines


 

Delta Air Lines {{nyse|DAL}} {{Airline codes|DL|DAL|Delta}} is a major U.S. airline headquartered in Atlanta, Georgia, operating a large domestic and international network that spans North America, South America, Europe, Asia, and the Caribbean.

History

The company has its roots in Huff Daland Dusters, which was founded in 1924 in Macon, Georgia by several partners including Collett Everett Woolman. Huff Daland moved to Monroe, Louisiana the following year. In 1928, Huff Daland Dusters was purchased by C.E. Woolman and renamed 'Delta Air Services' after the Mississippi Delta, where its route connected Dallas, Texas to Jackson, Mississippi, via Shreveport, Louisiana and Monroe. By 1934, Delta Air began mail service from Charleston to Fort Worth, including Atlanta, Augusta and other stops in Georgia. In 1941, Delta moved its headquarters from Monroe to Atlanta, Georgia, to center itself along its new route network that connected Chicago and New Orleans to Florida and Ohio which would later become a Delta hub.

Related Topics:
Huff Daland Dusters - 1924 - Macon, Georgia - Collett Everett Woolman - Monroe, Louisiana - 1928 - Mississippi Delta - Dallas, Texas - Jackson, Mississippi - Shreveport, Louisiana - 1934 - 1941 - Atlanta, Georgia - Chicago - New Orleans - Florida - Ohio

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In the 1950s, Delta began flights from New Orleans to the Caribbean and Venezuela, becoming the number 2 U.S. carrier in the region after Pan Am and Braniff. On May 1, 1953, Delta merged with Chicago and Southern to expand routes in Midwest. In 1955 Delta introduced the "hub and spoke system" where flights are routed to a central point then sent out to other cities. By the early 1960s, Delta's route network stretched to the West Coast, and Dallas was emerging as its second hub city. Delta became the launch operateor of the DC-8, which began service in 1959, and the Convair CV-880 in 1960. The DC-8's gracefull swept wing design inspired Delta to come up with a new logo which incorporated a new red, white, and blue triangle logo (the "widget"). Just a few years later, Delta became the launch operator of the DC-9. By 1970, Delta was an all jet aircraft airline.

Related Topics:
1950s - Pan Am - Braniff - 1955 - 1960s - Dallas - DC-8 - Convair CV-880 - DC-9 - 1970

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Delta purchased Northeast Airlines in 1972 to strengthen its market share in the northeastern United States. Through the purchase, Delta begins its long 727 operation. In 1970, Delta entered the "wide-body" jet era with a purchase of five Boeing 747's to service its new long-haul high density routes. Shorty after, Delta leased a small number of DC-10's as a stopgap until its larger order of the new Lockheed L-1011 TriStars could be delivered. In 1973 the TriStar entered service for Delta. In 1978, Delta began flying from Atlanta to London with new Lockheed L-1011 TriStar aircraft: Frankfurt was added the following year. Delta's fast growth showed well in August 1979 when it became the first airline in the world to board one million passengers in one city in one month (Atlanta).

Related Topics:
Northeast Airlines - 1972 - United States - 727 - 1970 - Boeing 747 - DC-10 - 1973 - 1978 - London - Lockheed L-1011 - Frankfurt - August 1979 - Atlanta

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Delta launched its first frequent flyer program in 1981 which became the SkyMiles program in 1995. In 1982, Delta took delivery of their first 767-200, named the Spirit of Delta, which was paid for "by voluntary contributions from employees, retirees and Delta's community partners. The effort, called Project 767, was spearheaded by three Delta flight attendants to show the employees' appreciation to Delta for solid management and strong leadership during the first years following airline deregulation." http://www.l1011.homestead.com/SpirtofDL.html The airplane remains the flagship of the Delta fleet, and was repainted in a commemorative paint scheme and toured the country to celebrate the airline's 75th anniversary in 2004. http://www.bizjournals.com/atlanta/stories/2004/04/19/daily67.html

Related Topics:
1981 - SkyMiles

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In 1984 the company established its Delta Connection partnership linking local "feeder" airlines that served mid-size population areas to Delta nodes. The same year, Delta began its first flight to Hawaii (PHNL} with L-1011 aircraft. Through more inovations and focus on customer service, Delta offers nation's first public air-to-ground telephone system with Airfone, on the L-1011.

Related Topics:
1984 - Delta Connection - Hawaii - Airfone

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Delta was named official airline to Walt Disney World in 1985. Their official ride in the Magic Kingdom was Delta Dreamflight. In 1987, Delta took over Western Airlines and absorbed its large hubs at Salt Lake City and Los Angeles. That year, Delta began flights from Portland, Oregon to Tokyo, Seoul, and Bangkok, its first transpacific routes. Through these aquisitions and expansions Delta becomes the fourth largest U.S. carrier and fifth largest world carrier.

Related Topics:
Walt Disney World - 1985 - Delta Dreamflight - 1987 - Western Airlines - Portland, Oregon - Tokyo - Seoul - Bangkok

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Delta was the first U.S. airline to operate the MD-11 aircraft in 1990. Delta's most dramatic expansion came with its purchase of Pan American's European routes in 1991 which included all north Atlantic routes and the Frankfurt, Germany hub, shortly before Pan Am declared bankruptcy. The purchase gave Delta the largest transatlantic route network which stands to today, and a small group of A310 aircraft that were retired after a few years. Even today, Delta is considered the leading U.S. carrier across the Atlantic in terms of pasengers carried and number of flights operated. Delta also aquired Pan Am's northeastern shuttle where they also took delivery of a number of Boeing 727's which was later replaced by 737-800's and 737-300's. In 1993 Delta established a codesharing arrangement among other airlines, giving the company access to more destinations. By 1997 Delta began large expansions into Latin America and in 1999 introduced the Boeing 777 into its fleet greatly increasing possibilities to longer non-stop services.

Related Topics:
MD-11 - 1990 - Pan American - 1991 - A310 - Boeing 727 - 737-800 - 737-300 - 1993 - Codesharing - 1997 - Latin America - 1999 - Boeing 777

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In 2000, Delta made another big decision in the company's history by launching SkyTeam, a global alliance, partnering Delta with AeroMexico, Air France and Korean Air. Just three years later, Delta implements the largest domestic codeshare alliance with Continental and Northwest. Skyteam becomes the second largest airline alliance in the world. Today, SkyTeam is made up of AeroMxico, Air France-KLM, Alitalia, Cotinental Airlines, CSA Czech Airlines, Delta Air Lnes, Korean Airlines, and Northwest Airlines. Delta also has code-sharing agreements with Air Jamaica, Avianca, China Airlines, China Southern, El Al Israel Airlines, Royal Air Maroc, South African Airways, and domestic partners Alaska Airlines, American Eagle, Continental Airlines, ExpressJet, Horizon Air Industries, Mesaba, Northwest Airlines, and Pinnacle Airlines.

Related Topics:
2000 - SkyTeam - AeroMexico - Air France - Korean Air - Continental - Northwest - Alitalia - CSA Czech Airlines - Air Jamaica - Avianca - China Airlines - China Southern - El Al Israel Airlines - Royal Air Maroc - South African Airways - Alaska Airlines - American Eagle - ExpressJet - Horizon Air Industries - Mesaba - Pinnacle Airlines

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Delta was one of the airlines targeted in the failed Operation Bojinka plot: the conspirators planned to bomb a Delta MD-11 flying from Seoul to Bangkok via Taipei on January 21, 1995.

Related Topics:
Operation Bojinka - MD-11 - January 21 - 1995

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Delta was a founding partner of the online travel agency Orbitz, which was purchased by Cendant in 2004.

Related Topics:
Orbitz - Cendant

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Current restructuring

Delta operated its last MD-11 flight on January 1, 2004, Flight 56 departing New Tokyo International Airport (now Narita International Airport) at 4:45pm. The aircraft arrived in Atlanta at 3:20pm. This concluded MD-11 service in the fleet (being replaced by the Boeing 777-200), with Delta having retired the other three-engined aircraft, the Boeing 727 (replaced by the Boeing 737-800) in 2003, and the Lockheed L-1011 (replaced by the Boeing 767-400) in 2001. Its entire active fleet is now comprised of twinjets. Delta had 14 MD-11's at the time of the aircraft's retirement. On September 23, 2004, a Delta spokesperson confirmed plans to sell eight MD-11s to FedEx.

Related Topics:
January 1 - 2004 - Narita International Airport - Boeing 777-200 - Boeing 727 - Boeing 737-800 - 2003 - Lockheed L-1011 - Boeing 767-400 - 2001 - FedEx

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As part of Delta's transformation plan, they are planning to retire four aircraft types. According to a report by Aviation Daily, Delta is planning to retire their 737-200, 737-300, 767-200, and MD-90 fleet. A more recent report by Dow Jones Newswires (article at iWon Money) states that Delta's previous CFO Michael Palumbo aims to drop the 737-200, 737-300, and 767-200. The fourth type is currently undecided, being either the MD-80 or MD-90. Replacement aircraft are currently unknown, although it is expected that the MD-80 or MD-90 will be replaced by a 737 family aircraft, probably the 737-800. In August 2005, Delta announced the 737s operating their Shuttle services would be replaced by nine MD-88s from their discontinued Dallas hub and from Salt Lake City, with a consequent rise in capacity (14 seats per aircraft) and provision of premium services on those routes. On September 7, 2005, Delta announced that it had made a deal with Ohio based ABX Air Inc. to purchase 11 Boeing 767-200 aircraft along with the one they bought in July 2005. The agreement calls for ABX Air to take delivery of six of the eleven aircraft in calendar year 2006, two in 2007 and three in 2008, with payment due upon the delivery of each aircraft. The total deal is worth $190 million. Delta also announced that it plans on keeping the Spirit of Delta which was the first 767-200 bought by the airline's employees. They plan on donating the plane to the Delta Heritage Museum. The two remaining 767's will be sent to the same location where the majority of the company's L-1011's are located.

Related Topics:
737-200 - 737-300 - 767-200 - MD-90 - Dow Jones - MD-80 - 737 - August 2005 - MD-88 - Dallas - Salt Lake City - September 7 - 2005 - Ohio - ABX Air Inc. - Spirit of Delta - Delta Heritage Museum - L-1011

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In 2004, in an effort to avoid bankruptcy, Delta announced a restructuring of the company that included job cuts as well as turnaround plans for expansion of Atlanta operations by some 100 new flights making it a 'super-hub' and requiring the airline to spread its flight schedule more evenly across the day. Delta closed its hub at Dallas-Fort Worth International Airport on January 31st 2005.

Related Topics:
2004 - Bankruptcy - Dallas-Fort Worth International Airport

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SimpliFares

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On January 5, 2005, through SimpliFares, the company revamped its fare structure, cutting its most expensive fares by as much as 50 percent nationwide and capping one-way domestic fares at $499 in coach class and $599 first class. They also launched a system of "same-day confirmed" where for $25, a passengers may get a confirmed seat on a different flight instead of standing by. Due to continued high fuel costs, the company was forced to raise these fare caps by $100 in July 2005 to $599 in coach class and $699 in first class.

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In 2005, Delta applied to serve a daily non-stop flight from Atlanta to Beijing, China starting in March 2006, but slots were given to American Airlines, operating from Chicago and Continental Airlines out of Newark.

Related Topics:
2005 - Atlanta - Beijing - China - American Airlines - Chicago - Continental Airlines - Newark

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On August 15, 2005, in an SEC filing, Delta announced that it had finalized a deal to sell Delta Connection carrier Atlantic Southeast Airlines for $425 million in cash to SkyWest Airlines in an effort to obtain money to avoid bankruptcy. It is said that the move was a desperate one on Delta's behalf because many analysts have estimated ASA's worth at around $700-$800 million, which SkyWest would not have been able to afford.

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On September 7, 2005, Delta announced that it would cut 26% of its flights at its Cincinnati hub and move many of the cut flights to its hubs in Atlanta and Salt Lake City. The move may eliminate up to 1000 jobs as a result of the capacity cuts in Cincinnati. They also announced further international expansion into Europe and Latin America as these routes are more profitable. The move is also expected to free up needed aircraft to fly these new routes and routes affected by the retirement of the 737 classics, the MD-90's out of SLC and the 767-200.

Related Topics:
September 7 - Cincinnati - 737 - MD-90 - 767-200

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On September 14, 2005, Delta filed for Chapter 11 bankruptcy protection in New York for the first time in its 76 year history. The Delta board of directors unanimously voted to file for protection which they see would be in the company's best interest. The company cites high labor costs and record breaking jet fuel prices as factors in its filing. To date, Delta is $20.5 billion in debt, $10 billion of which was accumilated since January 2001. It is also suspected that Delta may look to merge with Northwest Airlines seeing as they have filed for bankruptcy on the same day and talks were going around for months about the two airline's possible mergers. A flaw in such merger is that Delta and Northwest operate entirely dissimilar fleets.

Related Topics:
September 14 - Chapter 11 bankruptcy - New York - Jet fuel - January - 2001 - Northwest Airlines

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On September 22, 2005, the company announced the acceleration of restructuring activites and projected savings from the bankruptcy process with a target of an additional $3 billion per year by 2007. This comes in part from debt relief, lease and facility savings and fleet modifications which will account for $970 million and with layoffs of between 7000 to 9000 of Delta's 52,000 employees. Management salaries will be reduced by a minimum of 9% across the board, with a 15% reduction for executive officer and a 25% pay cut for CEO Gerald Grinstein. The company also plans to alter its network structure by "right-sizing" hubs and increasing point-to-point routes. It plans to reduce domestic capacity by up to 20% while growing the more profitable international route capacity up to 25%. Based on these new iniititaves, Delta projects being a profitable company within two years even if oil levels were at $66 per barrel in contrast to other major carrier's restructuiring centered around $55 per barrel.

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Advertising

Delta has had several different slogans throughout its history:

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  • In 1940, Delta adopted the slogan: "Airline of the South".
  • In 1968, Delta adopted the slogan: "Delta is ready when you are".
  • In 1987, Delta adopted the slogan: "We love to fly, and it shows".
  • In 1995, Delta adopted the slogan: "You'll love the way we fly".
  • In 2005, Delta adopted the slogan: "Good Goes Around".