By Dan Schlossberg
ConsumerAffairs.com
October 17, 2006
After coming this close to extinction, Delta Air Lines hopes its new leaner-but-meaner
approach will win approval from the flying public.
Though still stuck in bankruptcy protection, America's third-largest carrier is placing more emphasis on inflight entertainment and overseas schedules -- moves it hopes will put it ahead of the competition.
Though total flying capacity is down by seven per cent, Delta now ranks No. 1 in flights between the U.S. and Europe, topping British Airways. The recent addition of 50 new flights -- to Europe, Latin America, and the Caribbean among other destinations -- helped, though the carrier lost a bid for a China route and still has only one daily flight between the U.S. and Japan.
After avoiding a pilots strike that could have grounded it, Delta reported a second-quarter profit in 2006 that was its first in five years. It also saved money by terminating a pilot pension plan that was underfunded.
The carrier also announced:
• A new in-flight entertainment system for passengers on long domestic flights
• Lie-flat seats in business class on all of its 767s and 777s by 2010
• Addition of JFK to a hub system that already includes Atlanta, Cincinnati, and Salt Lake City.
Installation of new entertainment system will require retrofitting of 117 planes -- an enormous expense but a worthwhile one, according to executives of the airline.
"This was designed to help us gain market share," said Jim Whitehurst, Delta's chief operating officer. "We need to have a transcontinental product we can be proud of."
All Delta flights of four hours or more from Atlanta, Salt Lake, and New York will have the new entertainment system by March 2008. It will give every passenger access to 20 movies, 24 TV channels, 10 video games, and 1,600 songs. The only charge will be $5 for movies in coach.
Delta's short-lived offshoot Song won passenger raves for its entertainment system, consisting primarily of setback television. Other carriers have reported a similar reaction.
A foldout monitor equipped with an on-demand entertainment system will be part of the lie-flat seats targeted for business class in two Delta 777s ticketed for 2008 arrival.
With more overseas flights, less competition from low-cost carriers, and a greater New York presence, Delta hopes to at least double its revenue from international flights, about 20 per cent last year. Meeting that goal should help it emerge from bankruptcy on time in the middle of next year.
