Delta Air Lines, Inc. · NYSE:DAL
Delta Air Lines — Investor Day (March 2007)
11 slides from Delta Air Lines's investor day presentation, Mar 27, 2007
Slide 1: Earn Customer Preference: Top Tier Operational Performance
Earn Customer Preference: Top Tier Operational Performance Joe Kolshak Executive Vice President - Operations March 27, 2007
Slide 2: Safe Harbor
Safe Harbor This presentation contains various projections and other forward-looking statements which represent Delta's estimates or expectations regarding future events. All forward-looking statements involve a number of assumptions, risks and uncertainties, many of which are beyond Delta's control
Slide 3: Operations Priorities
Operations Priorities 2006 Additional Priorities in 2007 Establish Top Tier baggage performance among our competitive set Bags Delta Connection Improve operational performance on par with Delta mainline JFK Improve facility Reduce taxi delays and airspace delays
Slide 4: Strategy - Safe
Operations Strategy - Safe Delta has the fewest Aircraft Ground Damages in the Industry 600 500 400 300 200 100 0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Number of Cases 6.00 Rate per 10,000 Departures Count Rate 2006 Industry Average/10,000 Departures - 4.5 5.00 4.00 3.00 2.00 1.00 S
Slide 5: Clean Cabin Condition
Deep Cleaning International fleet - every 17-20 days Entire fleet - every 30 days Operations Strategy - Clean Cabin Condition New Interiors 81% complete as of Feb '07 Cabin Reconditioning Previously 77 day interval Now at 15 day interval Cabin Cleaning Recognition 2006 JD Power Ratings DL named "Amo
Slide 6: Atlanta and Northeast Strategy
Atlanta and Northeast Strategy Atlanta PRM / RNAV Atlanta 5th Runway Atlanta Runway 8R end-around Operations Strategy - On Time DOT On - - Time Ranking 2007 Key: AA = American, AS = Alaska, B6 = JetBlue, CO = Continental, DL = Delta, FL = AirTran, HP = America West, NW = Northwest, UA = United, US=
Slide 7: Baggage Infrastructure Upgrades and Process Improvements
Infrastructure Upgrades Conveyors / Driver Assignments Process Improvements Standardized Loading Pier Balancing Baggage Services Office Baggage Self Service Roving Baggage Agent Bag Scanning Technology Hand-held RFID Operations Strategy - Bags DOT Bag Ranking US US 11 US DL DL 10 DL AA AA 9 AA AS NW
Slide 8: Strategy - Delta Connection
Operations Strategy - Delta Connection Align Delta Connection performance with mainline Delta Rationalize block times ASA DCI Delta Mainline YTD Block Time Reliability (BTR) 69.1% 63.0% 59.8% Drive performance improvement in D0, A14 and Completion Factor CF A14 D0 (2.4) 98.0 95.6 (9.8) 78.5 67.7 (6.
Slide 9: Strategy - JFK Ground Congestion
Operations Strategy - JFK Ground Congestion ATC Airspace Utilization J F K L G A LGA/JFK Sector Boundary JFK Canarsie Climb JFK Bridge Climb JFK Breezy Point Climb B A Existing Proposed Arrivals Departures Passenger Flow Curb to Counter / Counter through Security Lobby Improvements Below Wing / Airc
Slide 10: Operational Efficiency
Operational Efficiency Monthly Block Hours per Line Pilot 44 43 44 51 55 35 40 45 50 55 60 2001 2002 2003 2004 2005 2006 59 34% improvement 7,351 6,940 6,284 5,759 $0 5,500 6,000 6,500 7,000 7,500 8,000 2003 2004 2005 2006 Headcount Pilot Headcount (FTE) Maintenance CASM 0.89 0.87 0.80 (1) 0.85 $0 0
Slide 11: RNAV/RNP and Fuel Initiatives
RNAV/RNP Operations Control Center (OCC) Minutes '02 '03 '04 '05 '06 '07 (ytd) 50 46 46 42 33 33 Year over Year Avg Contingency Fuel Carried FAA Official said Delta was "clearly an industry leader" in RNAV/RNP development. ~$100 Million savings from Fuel Initiatives 1 Source: DOT F41, Company SEC fi