Delta's ambitions soar again
When Delta Air Lines Inc. went into a financial tailspin a few years ago, its longtime slogan "We love to fly, and it shows" became the butt of jokes as passengers encountered grungy cabins, gaping flight delays and grumpy attendants.
Rather than loving to fly, "the employees seemed stressed and frustrated," said David Urode, a Delta frequent flier. "I was constantly asking
Not anymore.
Emerging from 19 months of bankruptcy protection, Delta is inching back up, leaner and more focused, with airplanes that have been scrubbed clean and a re-energized workforce that is roping back customers like Urode.
Emboldened with a restructured balance sheet and a new look, Delta is about to expand again and has set its sights mainly on Los Angeles International Airport, where it once was the largest carrier but had slipped to fourth in recent years.
This week Delta is expected to announce that it will increase the number of flights out of LAX by 50% from 62 departures a day to 99, making the airport one of the busiest for the Atlanta-based carrier.
That's good news for travelers in Southern California because the move would intensify competition at LAX and could keep the lid on airfares, analysts say. UAL Corp.'s United Air Lines, AMR Corp.'s American Airlines and Southwest Airlines Co. are now the largest carriers at LAX.
"There's no doubt Delta is going to affect fares there," said Ray Neidl, airline analyst at New York-based Calyon Securities Inc.
United Airlines, the largest carrier at LAX, acknowledged last month that fares were likely to be held down in California because of the competition.
While Delta heats up the competition for domestic passengers, its expansion plans could have the biggest effect on international travel.
At LAX, 90% of the international flights are operated by foreign carriers that have been raising fares as demand has surged.
Delta is planning a significant increase at LAX, particularly to destinations in Latin America and Asia. In all, Delta sees international flights accounting for 40% of its flights, up from 30% today and 20% two years ago.
"We've decided to make L.A. our second Latin America gateway," said James Whitehurst, Delta's chief operating officer and one of the top internal candidates for the airline's chief executive post.
Delta is also eyeing the Asia market, Whitehurst said, adding that the carrier has "almost nothing in the Pacific."
- Delta to add flights at LAX May 09, 2007
- Delta Eliminates Burbank Flights Dec 29, 1992
- Delta's Lease at LAX Not Affected by Airport Bond Oct 15, 2005
