Delta has strong experienced management team. “I’d rate them right at the top,” says analyst Michael Derchin of CRT Capital Group. During the last 4 years, Delta has been proactive with labor unions by increasing profit sharing and minimizing the unionized labours, deleveraged the balance sheet by reducing significantly its debts, accomplished bought back shares programs, and raised dividends every year, increased its share price by double (Helman, 2015)
Delta won to become Corporate traveler’s favorite airline by voting it as No. 1 in five consecutive years in the Business Travel News (BTN) Annual Airline Survey. The BTN highlights from 2011-2015 include:
• Delta’s YOY improved results in 7 of 10 categories for 2015
• Winning No.1 in each of the 10 survey categories in 2012, 2014 and 2015
• Winning No.1 in 44out of 50 of possible categories over 5 years
• Improving its winning average scoring margin from 0.02 in 2011, to 0.88 in 2015 (PR Newswire, 2015).
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"Latin America is definitely one of the fastest growing areas," for airlines, says Jim Corridore, an airline analyst at S&P Capital IQ (CNN, 2015).
Building up new networks
Delta has undertaken restructuring process on its Pacific operations and built its networks in Latin America. It increased its shares in GOL Aereos which is the largest Brazilian domestic carrier to 10% and achieved exclusive partnership with, including 3.5% shares, China Eastern. In addition, it has acquired 49% of shares in Virgin Atlantic and 10% in Aeromexico. Through these strategic investments, Delta will be able to build hubs in Sao Paulo and Shanghai and increase its market share in transatlantic and Mexico which in turn lead to its revenue and market growth (Forbes, 2015).
Investing