Jetrader - November/December 2008 - (Page 9)

both airlines. In the meantime, we have 26 teams working on the planning of all aspects of the integration such as the frequent ﬂyer programs, crew scheduling, employee integration and community involvement, to name a few. J: What are some of the primary synergies you expect to realize from the merger, and how long do you expect it to take to recover the costs you will incur in merging the two companies? RA: The $2 billion in synergies will come from both decreased costs and increased revenues. For instance, on the cost side, we will be moving to a singletechnology platform, which will result in one reservations system, one revenue management system and one operating system, which brings us considerable savings over the next two to three years. Photo courtesy of Delta Airlines J: What can you tell us about Delta’s post-merger ﬂeet plans? How long do you expect to continue operating the DC9s? Which aircraft types do you see becoming the post-merger company’s core ﬂeet? RA: We are still studying the ﬂeet types with the information that is publicly available since the merger is not yet complete. We believe there is opportunity to increase revenues by right-sizing aircraft to the right routes. It is another strong case for the merger because this ﬂeet ﬂexibility is a huge beneﬁt for us and will help make us a much stronger carrier. mestic ﬂights feed international ones? Are code-share or other arrangements with LCC’s on the horizon? Are there other changes coming that will result in further reduction in domestic ﬂying by the legacy airlines? RA: At Delta, we are working towards a 50/50 domestic/international network presence. But as PanAm proved years ago, an international operation alone is not sustainable so you have to make the domestic and the international work together. Legacy carriers like Delta have a very different business model than so-called low-cost carriers, so I do not foresee codeshares between the two at this time. J: Do you expect to see other U.S. airlines merging in the next 12 months? In your view, what have been the primary road blocks that have prevented other U.S. airline mergers? RA: It is unlikely. Delta and Northwest make the most sense of any possible airline combination because our route systems do not overlap. Delta has a major presence in the southeast, New York and across the Atlantic to Europe, Africa and the Middle East. Northwest has a solid presence in the Midwest and in Asia. Together, our route networks combine to create the most comprehensive network in the world and one that does not have overlap. In almost any other combination you can think of, there is overlap, which could potentially have a negative impact on employees and communities. We were the only airlines to get it done because we make the most sense together. J: How comfortable do you feel with the current aircraft trafﬁc control system, and what issue(s) would you like to see addressed ﬁrst? RA: The ATC system needs a dramatic overhaul, and we are long overdue. We must work together to demand that Congress act to implement funding for ATC overhaul. It is an antiquated system that needs 21st century technology in order to keep up with demand. A new FAA funding bill must be passed in the next administration. We have waited too long already. J: What are the primary areas where you think the U.S. airlines should focus their energy on doing better? RA: At Delta, our goal is to provide customers with an experience that is safe, clean, on time, with bags delivered and courteous customer service. We are in the top tier among our peers in most areas. We are also making every effort to take care of our customers during irregular operations, be it ATC or weather. We are investing heavily in technology to help ensure that our customers are automatically rebooked and their needs are met. Overall, we have to continue to deliver a safe, reliable ﬂight experience. J: If fuel costs remain high, do you expect to see any more major U.S. carriers ﬁle for bankruptcy? Do you expect to see any of them cease operations, at least as an independent carrier? RA: It is hard to predict what will happen. We are focused on making Delta successful. J: It seems that more and more emphasis is being placed on international ﬂying and that domestic ﬂying is only proﬁtable to the extent that it feeds the international network. What changes do you see coming in the way do- J: What do you think the industry as a whole has done well this decade? RA: Right sizing capacity to demand. Jetrader 9 r

Table of Contents Feed for the Digital Edition of Jetrader - November/December 2008

Jertrader - November/December 2008 A Message from the President Contents Calendar/News Q%2BA: Richard Anderson Building a Strong Foundation Post Prague Aircraft Appraisals From the ISTAT Foundation Aviation History

Jetrader - November/December 2008

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