Delta Airlines 2015 Annual Report Download - page 9
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Fuel Supply Availability
Wearecurrentlyabletoobtainadequatesuppliesofaircraftfuel,includingfuelproducedbyMonroeorprocuredthroughtheexchangeofnon-jetfuelproducts
therefineryproduces,andcrudeoilforMonroe'soperations.However,itisimpossibletopredictthefutureavailabilityorpriceofaircraftfuelandcrudeoil.
Weather-relatedevents,naturaldisasters,politicaldisruptionsorwarsinvolvingoil-producingcountries,changesingovernmentpolicyconcerningaircraftfuel
production,transportationormarketing,changesinrefiningcapacity,environmentalconcernsandotherunpredictableeventsmayresultinfuturefuelsupply
shortagesandfuelpriceincreases.
FrequentFlyerProgram
OurSkyMiles®frequentflyerprogram("SkyMilesprogram")isdesignedtoretainandincreasetravelerloyaltybyofferingincentivestocustomerstoincrease
travelonDelta.TheSkyMilesprogramallowsprogrammemberstoearnmileagecreditfortravelawardsbyflyingonDelta,itsregionalcarriersandother
participatingairlines.Mileagecreditmayalsobeearnedbyusingcertainservicesofferedbyprogramparticipants,suchascreditcardcompanies,hotelsandcar
rentalagencies.Inaddition,individualsandcompaniesmaypurchasemileagecredits.Milesdonotexpire,butaresubjecttotheprogramrules.Wereservethe
righttoterminatetheprogramwithsixmonthsadvancenotice,andtochangetheprogram'stermsandconditionsatanytimewithoutnotice.
SkyMilesprogrammileagecreditscanberedeemedforairtravelonDeltaandparticipatingairlines,formembershipinourDeltaSkyClubs®andforother
programparticipantawards.Mileagecreditsaresubjecttocertaintransferrestrictionsandtravelawardsaresubjecttocapacity-controlledseating.In2015,
programmembersredeemedmorethan312billionmilesintheSkyMilesprogramfor13.3millionawardredemptions.Duringthisperiod,7.2%ofrevenuemiles
flownonDeltawerefromawardtravel.
OtherBusinesses
Cargo
Throughourglobalnetwork,ourcargooperationsareabletoconnectalloftheworld'smajorfreightgateways.Wegeneratecargorevenuesindomesticand
internationalmarketsthroughtheuseofcargospaceonregularlyscheduledpassengeraircraft.WeareamemberofSkyTeamCargo,aglobalairlinecargoalliance,
whoseothermembersareAeroflot,AerolíneasArgentinas,AeroméxicoCargo,AirFrance-KLMCargo,AlitaliaCargo,ChinaAirlinesCargo,ChinaCargo
Airlines,ChinaSouthernCargo,CzechAirlinesCargoandKoreanAirCargo.SkyTeamCargooffersaglobalnetworkspanningsixcontinents.
Delta TechOps, Delta Global Services, MLT Vacations and Delta Private Jets
Wehaveseveralotherbusinessesarisingfromourairlineoperations,includingaircraftmaintenance,repairandoverhaul(“MRO”),staffingandotherservices,
vacationwholesaleoperationsandourprivatejetoperations.In2015,thetotalrevenuefromthesebusinesseswasapproximately$1billion.
• Inadditiontoprovidingmaintenanceandengineeringsupportforourfleetofover900aircraft,ourMROoperation,knownasDeltaTechOps,serves
aviationandairlinecustomersfromaroundtheworld.
• DeltaGlobalServicesprovidesservicestousandtothirdparties,includingstaffingservices,aviationsolutions,professionalsecurityandtraining
services.
• Ourvacationwholesalebusiness,MLTVacations,providesvacationpackagestothird-partyconsumers.
•Ourprivatejetoperations,DeltaPrivateJets,providesaircraftcharters,aircraftmanagementandprogramsallowingmemberstopurchaseflighttime
bythehour.
DistributionandExpandedProductOfferings
Ourticketsaresoldthroughvariousdistributionchannelsincludingdigitalchannelssuchasdelta.comandmobile,telephonereservationsandtraditional"brick
andmortar"andonlinetravelagencies.AnincreasingnumberofourticketsaresoldthroughDeltadigitalchannels,whichreducesourdistributioncostsandgives
usimprovedanddirect,personalizedinteractionwithourcustomers.
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