The New Delta Airlines
Thomas D. Stringer
Principles of International Corporate Finance
Delta Air Lines, Inc. is a commercial airline based and headquartered in Atlanta, Georgia. The primary business function of Delta is to provide public air transportation services on a system of regularly scheduled routes. It is a publicly traded company on the New York Stock Exchange under the ticker symbol DAL. Delta operates an expansive domestic and international network, spanning North America, South America, Europe, Asia, Africa, the Middle East and the Caribbean. Delta has operations in over 60 countries spanning five continents. Delta ...view middle of the document...
The company was based in Monroe Louisiana and during the winter it did crop dusting in Peru. In 1927 it received a contract to carry airmail between Peru and Ecuador. Huff Daland Manufacturing the airlines owner sold its crop dusting subsidiary to a Monroe businessman. He renamed the company Delta Air. The company began passenger service between Dallas Texas and Jackson Mississippi. In 1934 Delta won its first air mail contract. In 1941 Delta moved its offices from Monroe to Atlanta. In 1953 Delta merged with Chicago and Southern Airlines. In 1972 it acquired Northeast Airlines and in 1987 it acquired Western Airlines. In 1991 Delta acquired many of the assets of bankrupt Pan American, including its European routes, its shuttle and many of the aircraft to fly on those routes. Delta struggled by the beginning of the 21st century to compete with low cost carriers. Delta started a low cost subsidiary Song (MultiEd).
Delta has a long history of innovation and acquisition in the airline industry. They have survived by weathering the storm in a tough, complex industry. Now, Delta has reached a point where they are an all but permanent face in the airline industry. Entire countries depend on the presence of Delta Airlines as an essential part of their underlying economic infrastructure. Most investors believe that the United States Government would bail out Delta Airlines before they could ever let the company fold financially. The absence of Delta would have a much greater detrimental cost to the economy as a whole, and thus keeping it going will always be in the best interest of the American people. Now, fueled by the coming merger the â€œNewâ€ Delta Airlines is poised to emerge as the leading commercial airliner in the world.
The description of the worldwide services available that is found on the Delta Airlines website, Delta.com, really captures the core business activities that Delta offers across the globe.
Delta Air Lines (NYSE: DAL) offers customer service to more destinations than any other global airline with Delta and Delta Connection carrier service to 311 destinations in 52 countries. With more than 60 new international routes added in the last year, Delta is adding international flights at a faster rate than any other major U.S. airline and is a leader across the Atlantic with flights to 32 trans-Atlantic destinations. To Latin America and the Caribbean, Delta offers more than 600 weekly flights to 58 destinations. Delta's marketing alliances also allow customers to earn and redeem SkyMiles on nearly 15,000 flights offered by SkyTeam and other partners. Delta is a founding member of SkyTeam, a global airline alliance that provides customers with extensive worldwide destinations, flights, and services. Including its SkyTeam and worldwide codeshare partners, Delta offers flights to 462 worldwide destinations in 98 countries. Customers can check in for flights, print boarding passes and check flight status at delta.com...