Delta Airlines 2008 Annual Report Download - page 7

Table of Contents
Index to Financial Statements
PART I
ITEM 1. BUSINESS
General Description
We are the world's largest airline, providing scheduled air transportation for passengers and cargo throughout the United States and around the world.
On October 29, 2008, a subsidiary of ours merged with and into Northwest Airlines Corporation ("Northwest"). As a result of this merger, Northwest and its
subsidiaries, including Northwest Airlines, Inc. ("NWA"), became wholly-owned subsidiaries of Delta. We plan to fully integrate the operations of NWA into
Delta as promptly as is feasible, which we anticipate we will substantially complete in 2010.
The merger better positions us to manage through economic cycles and volatile fuel prices, invest in our fleet, improve services for customers and
achieve our strategic objectives. We believe the merger will generate approximately $2 billion in annual revenue and cost synergies by 2012 from more
effective aircraft utilization, a more comprehensive and diversified route system and cost synergies from reduced overhead and improved operational
efficiency. We expect to incur one-time cash costs of approximately $500 million over approximately three years to integrate the two airlines.
We have developed the following strategy that is intended to make Delta the premier global airline:
• build a financially viable airline by achieving consistent profitability, top-tier industry pre-tax margins and an industry-leading balance sheet,
including diversifying our revenues from sources such as our SkyMiles® frequent flyer program, cargo transportation and our aircraft
maintenance, repair and overhaul business;
• create a comprehensive worldwide network that is structurally sustainable, drives unit revenue premiums relative to the industry average and
generates long-term profits;
• maintain responsible and disciplined capital management, including making investments in our aircraft fleet based on demonstrated returns;
• pursue strategic options to broaden our network scope and long-term viability, including through our merger with Northwest and our expanded
marketing alliance with Alaska Airlines and Horizon Air;
• build the leading global airline alliance in terms of market presence, distribution, customer experience and financial contribution;
• deliver industry-leading safety and operational performance coupled with a strong commitment to customer service; and
• sustain a competitive advantage by building a world-class employee-friendly airline that is productive, diverse, accountable, results-driven and
known as a great place to work.
We are incorporated under the laws of the State of Delaware. Our principal executive offices are located at Hartsfield-Jackson Atlanta International
Airport in Atlanta, Georgia (the "Atlanta Airport"). Our telephone number is [phone] and our Internet address is www.delta.com. Information
contained on this website is not part of, and is not incorporated by reference in, this Form 10-K.
Airline Operations
Our global route network is centered around the hub system we operate at airports in Atlanta, Cincinnati, Detroit, Memphis, Minneapolis/St. Paul, New
York-JFK, Salt Lake City, Amsterdam and Tokyo-Narita. Each of these hub operations includes flights that gather and distribute traffic from markets in the
geographic region surrounding the hub to domestic and international cities and to other hubs. The combination of Delta's strengths in the south, mountain west
and northeast United States, Europe and Latin America and NWA's strengths in the
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