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Delta Walks Through Its Huge Strategic Move Into Latin America, Really Sticks It to Qatar and American.

by Gary Leff on September 27, 2019

Sep 27 2019

After the close of markets on Thursday Delta announced they’re acquiring 20% of LATAM. That’s huge for Delta giving them a big presence in Latin America, on top of owning 49% of Aeromexico.

This positions Delta well to grow in American’s back yard of Miami and it undercuts American’s South America flights by denying them connecting feed, and blocks American’s joint venture with LATAM (which would have had to exclude Chile flights). And it really sticks it to the CEO of Qatar Airways given their 10% stake in LATAM.

OMG: Delta Buying 20% of LATAM, Steals American’s Potential Joint Venture

by Gary Leff on September 26, 2019

Sep 26 2019

Delta announced that they’re taking a 20% stake in LATAM, the largest airline conglomerate in South America comprised of LATAM Argentina, Brasil, Colombia, Ecuador, Paraguay, and Perú.

American Airlines had worked towards a joint venture with LATAM but it was rejected by Chile’s Supreme Court this spring. LATAM will exit the oneworld alliance, although no plans have been announced for their entrance to SkyTeam.

A Huge Strategic Opportunity American Airlines Isn’t Going to Take

by Gary Leff on September 20, 2019

Sep 20 2019

With more satellite internet installs than any other airline, even if they had to throttle speeds on legacy US Airways 2Ku planes, they could grab the mantle of being the digital airline by getting out in front of Delta’s free wifi delays.

Based on past conversations with American executives who have briefed me on their connectivity plans, it seems unlikely to me that they’ll seize the opportunity of a Delta delay.

Delta Passenger’s Luggage Tag Vandalized With Slur – Underscores How Progressive the Airline Really Is

by Gary Leff on September 19, 2019

Sep 19 2019

Unless Delta has proof that the passenger vandalized their own baggage tag, they should apologize. But none of us should think that the slur represents the company’s values, and indeed a majority of corporate interests are usually best-served by espousing progressive values.

Delta CEO: SkyTeam Failed, Airline Will Create Their Own International Network of Carriers

by Gary Leff on September 19, 2019

Sep 19 2019

Delta CEO Ed Bastian told Bloomberg that the SkyTeam, of which Delta is a part, hasn’t “brought a lot of great value to customers..[or] to member airlines” and so they’re trying to create their “own international network of carriers” with Delta “as the centerpiece.”

The Atlanta-based carriers is shifting away from an alliance focus and “taking a different approach” where they use local airline brands that can operate in local markets around the world and influence those airlines to be more efficient.

United Airlines Says It’s Immoral to Move to a Better Seat While Inflight

by Gary Leff on September 8, 2019

Sep 08 2019

Since norms vary across airlines and have only recently changed it’s not a moral failing of passengers who don’t know or understand the position that any given airline takes here. On the contrary, it’s incumbent on the airline to explain in clear terms what their policy is and why rather than suggesting a passenger wanting to move is doing something untoward.

Delta’s CFO Explains Why They’re Successful Today and Where Tomorrow’s Profits Will Come From

by Gary Leff on September 4, 2019

Sep 04 2019

Delta Chief Financial Officer Paul Jacobson spoke at an industry analyst conference to make the case that their successes aren’t the result of being farther into their merger than competitors. There are specific things they’ve done that make them profitable, and they have a list of things they plan to do to grow profits growing forward.

This has implications for how other airlines run their businesses, and for what customers need to expect from flying Delta.

Free Pretzels For Delta Credit Card Customers in Hub Cities and Raleigh

by Gary Leff on September 4, 2019

Sep 04 2019

Tthe time and transportation cost to get a $3 pretzel will probably cost more people more than $3. But free pretzels from Delta and American Express!

Delta Giving Out Raises, Expects Bigger Bonuses – And That’s a Problem for Southwest and American

by Gary Leff on August 31, 2019

Aug 31 2019

Ground and flight attendant employees get a 4% raise. Employees who receive merit-based pay adjustments will have a 4% increase in the total compensation pool available to them. And bonuses are expected to be higher, too.

Just as importantly the airline communicates that it is investing in solving pain points in jobs, and employees are reminded that they’re empowered to address the most important issues at the airline (safety). It’s a well-written memo.

Free Delta Miles, Priority Boarding, and Lyft Discounts for Washington State Residents

by Gary Leff on August 30, 2019

Aug 30 2019

One of the challenges with Delta’s buildup in the Seattle market has been the city’s intense loyalty to their hometown airline. “Alaska Airlines” is a strange name for a carrier based in Seattle but Seattleites feel a strong affinity for the company.

Delta has done a lot to move the needle, beyond schedule and price. Like Alaska they offer a 20 minute baggage delivery guarantee. The Seattle airport Sky Club is one of their best. And there have been semi-frequent mileage offers targeted at the local market.