Delta Airlines 2009 Annual Report Download - page 7

Table of Contents
PART I
ITEM 1. BUSINESS
General
We provide scheduled air transportation for passengers and cargo throughout the United States and around the world. In October 2008, a wholly-owned
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 our wholly-owned subsidiaries. On December 31, 2009, NWA merged with and into Delta, ending NWA's
existence as a separate entity. We anticipate that we will complete the integration of NWA's operations into Delta during 2010.
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.
Financial Strategies
Complete the integration of Northwest. We believe the Northwest 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 also 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 reduced overhead
and improved operational efficiency.
Right-size our operations. In response to the global recession and high fuel prices, we reduced domestic and international capacity to better match capacity
with demand. We have focused on removing the associated capacity-related costs, including aircraft fleet and staffing. To reduce fleet costs, we removed 18
mainline passenger aircraft from the fleet during 2009, retired our entire fleet of B-747-200F freighter aircraft during 2009 and plan to remove over 30
regional jets from our network beginning in mid-2009 and continuing through early 2011. We have reduced staffing primarily through voluntary reduction
programs as well as normal attrition. At December 31, 2009, our total workforce was 4% lower than the combined workforce of Delta and NWA at
December 31, 2008.
Improve our operating margins. We believe that the scope of our network, combined with investments we are making in our product and customer service,
will enable us to generate a unit revenue premium to the industry and that our cost structure allows us to generate highly competitive unit costs, both of which
provide the tools to improve our operating margins. By strengthening our network, entering into joint ventures and expanding our alliances, we believe we are
better able to improve unit revenues. And while our consolidated non-fuel unit costs are the lowest among the major network carriers, we have additional
improvement opportunities as we reduce costs associated with right-sizing our business, increase productivity and realize merger synergies.
Strengthen our balance sheet. We currently, and will continue to, prudently manage costs and free cash flow to conserve liquidity. We finished 2009 with
$5.4 billion in unrestricted liquidity (consisting of cash, cash equivalents, short-term investments and undrawn revolving credit facility capacity). We have no
immediate need for significant aircraft purchases and currently have limited aircraft capital expenditures planned for the next three years. We will continue to
focus on cost discipline and cash flow generation toward our goal of further strengthening our balance sheet.
2010 Flight Plan
Providing a safe, secure operation is our first and most fundamental obligation to our customers and employees, as well as to the communities we serve.
The key goals of our 2010 flight plan include (1) positioning Delta as the global airline of choice, (2) enhancing our customer service, (3) promoting positive
employee relations, (4) building a diversified, profitable worldwide network and global alliance and (5) delivering industry-leading financial results.
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