Delta Air Lines, Inc.: Company Strategy & Performance Analysis
Delta Air Lines, Inc. (Delta Air Lines) was established in 1924. The company provides air transportation for passengers and cargo throughout the US. The company operates through two business units, passenger and cargo. Its passenger unit offers passenger transportation services throughout the US and worldwide with more than 15,000 daily flights. The cargo unit is a member of SkyTeam Cargo, a global airline cargo alliance, members include Aeroflot, Aerolineas Argentinas, Aeromexico, Air France-KLM, Alitalia, China Airlines, China Cargo Airlines, China Southern Cargo, Czech Airlines Cargo, and Korean Air Cargo. The company offers services across 323 destinations in 59 countries across six continents. Delta operates its business with a fleet of more than 832 aircraft.
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Delta Air Lines is investing in aircraft modification to increase its fleet
In April 2016, the company ordered 37 new Airbus A321 airplanes to replace its MD-88 aircraft. The deal will bring its A321 total order count to 82 as it phases out its remaining 116 less fuel-efficient MD-88s, which have an average fleet age of 25 years. The new aircraft will burn 28% less fuel than the MD-88 and reduce maintenance costs by 30%. Due to the launch of several initiatives over the historic period, the company has begun to receive deliveries of aircraft for its updated fleet. In March 2016, Delta Air Lines took delivery of its first Airbus A321 in Germany.
Modernization and expansion of facilities
The company has been modernizing its Sky Clubs, including the recent expansions of its flagship locations in Atlanta and Seattle. It is continuously improving the food, beverages and services offered throughout the Sky Club network. The company continues to make significant investments in technologies including delta.com, check-in kiosks, mobile device applications, employee customer service applications and airport information displays. In June 2016, Delta announced a US$1.9 billion plan to undertake the modernization, upgrade and connection of Terminals 2 and 3 at Los Angeles International Airport over 2017-2023.
Aims to improve operational efficiency
The company continues to reduce fuel consumption by phasing out some of its less-fuel efficient planes, such as the Boeing-747, which is expected to retire in 2017. The airline continues to invest in more fuel-efficient aircraft, such as the Airbus A321. The company aims to save 11 million gallons of fuel every year through improved arrival and departure procedures, and onboard weight reduction.