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Company Presentation by Joe Romeo

Company Presentation by Joe Romeo. Product. Offer incentive to travel frequently with Delta Airlines Skymiles members can purchase tickets or reduce cost of plain tickets after accumulating miles Skymiles members can also save miles to obtain special memberships

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Company Presentation by Joe Romeo

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  1. Company Presentation by Joe Romeo

  2. Product • Offer incentive to travel frequently with Delta Airlines • Skymiles members can purchase tickets or reduce cost of plain tickets after accumulating miles • Skymiles members can also save miles to obtain special memberships • This includes automatic upgrades to first class, free baggage check-ins, ect.

  3. History • Delta Skymiles was founded in 1995 and replaced what was called the “Frequent Flyer” program • In this replacement, Frequent Flyer miles were converted to Skymiles, which came with an expiration date • After many changes to the expiration system, they decided to change back to the original no expiration policy from the Frequent Flyer program in early 2011

  4. Financials • Revenue in 2010: 31.76 billion • Shares Outstanding: 834.8 million • Total Cash: 3.61 billion • Total Debt: 15.33 billion

  5. Financials • Delta’s Stock (DAL) • Between mid 2007 to mid 2008, Delta’s stock dropped from $20 a share to below $6 per share • Since 2008, the price has bounced back and forth between $5 and $10, but still has not completely recovered from the drop in 2007/2008

  6. Target Market Those who have to travel oftenor far

  7. Competitors • Spirit Airlines $9 fare club • Offers extremely cheap flights(sometimes $9) • Disadvantages • Membership costs money • No flexibility with location or time of travel • American Airlines Aadvantage • Very similar program to delta • Disadvantage - Miles expire!

  8. Secret Sauce • Skymiles, as of February 2011, never expire! • There is incentive to save miles up and become a recognized frequent flyer • The incentives are enough to justify me paying a little extra for a delta ticket over a cheaper airline(ie, free upgrades to first class on coach ticket purchase at 125000 miles)

  9. Future of Delta Skymiles • Delta can only last as long as the oil supplies • With the current state of the world, flights will become overly expensive and they will have trouble surviving • They will have to pivot eventually

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