Delta Air Lines, Inc. · NYSE:DAL
Delta Air Lines — Investor Presentation (March 2007)
14 slides from Delta Air Lines's investor presentation, Mar 27, 2007
Slide 1: Win Together: Fuel the Winning Spirit of Delta
Mike Campbell Executive Vice President Human Resources & Labor Relations March 27, 2007 Win Together: Fuel the Winning Spirit of Delta
Slide 2: Safe Harbor
Safe Harbor This presentation contains various projections and other forward-looking statements which represent Delta's estimates or expectations regarding future events. All forward-looking statements involve a number of assumptions, risks and uncertainties, many of which are beyond Delta's control
Slide 3: Everyone Agrees - Engagement is Critical
Provide excellent customer service Drive productivity and efficiency Are motivated and flexible Create a positive environment attractive to the best employees (retain and attract) Everyone Agrees - Engagement is Critical .... Engaged Employees: Engaged employees deliver superior performance and resu
Slide 4: But Execution is the Difference
..... But Execution is the Difference "Keep Delta My Delta" unites the team Delivering on Transformation plan Shared Rewards paid in 2006. This program pays up to $100 per month/employee for achieving monthly performance goals Velvet Rope Tour brings all Delta employees through a 1-2 day session to
Slide 5: VRT Feedback Shows Dramatic Results
VRT Feedback Shows Dramatic Results Overall Pre and Post Survey Results Pre Post Medium Blue Dark Blue Light Red Medium Red Dark Red Yellow Orange Brown Tan White Lt Gray Medium Gray Dark Gray Very Dark Gray Black Right Hash Mark Vertical Hash Mark Left Hash Mark Rain Pattern Bright Red Bright Yello
Slide 6: Winning Together Works
Winning Together Works Ranked #1 in 2006 in Overall Customer Satisfaction (network carriers)1 Ranked #2 in 2006 J.D. Power Airline Satisfaction Study Ranked #2 in on-time 2006 (network carriers) OJI claims down 7.4% YOY; short-term disability claims down 30% YOY Paid sick leave down 11% 2006 Opened
Slide 7: High Engagement Drives Customer Service Excellence
Source: J.D. Power and Associates 2006 Reservation Overall J.D. Power Ranking Cost and Fees Score Inflight Service Flight Crew Aircraft Condition/ Cleanliness Boarding/ Deplaning/ Baggage Low Ranking High Engagement Drives Customer Service Excellence 2006 J.D. Power recognition
Slide 8: Engagement Drives On-Time Performance
Engagement Drives On-Time Performance DOT On - - Time Ranking 2007 Key: AA = American, AS = Alaska, B6 = JetBlue, CO = Continental, DL = Delta, FL = AirTran, HP = America West, NW = Northwest, UA = United, US= US Airways, WN = Southwest Rank 2004 2005 2006 Jan Feb1 1 B6 HP WN WN DL 2 WN WN US DL CO
Slide 9: Achieved Best in Class Labor CASM
Achieved Best in Class Labor CASM Mainline Labor CASM, FY 2006 (¢) 1 1 Excludes profit sharing for CAL, LUV, LCC, NWAC and ALK 2 Unit costs adjusted to Delta's 2006 stage length of 1,169 miles 3 Adjusted to show results assuming termination of pilot pension plan on Jan. 1, 2006 Source: OAL SEC Filin
Slide 10: Something Unique is Happening at Delta
Something Unique is Happening at Delta
Slide 11: Emergence Package Builds on Great Momentum
Emergence Package Builds on Great Momentum Make employees stakeholders $350M equity stake (assuming $10B valuation) Commit to fair, competitive compensation 4% top of scale pay increase starts the process on pay Up to 7% defined contribution benefit in addition to frozen pension plan Link financial
Slide 12: Result is Positive
"Sure, it's one of the more positive things to come along," said Jerry Cooper, a customer service employee who has worked at Delta 19 years. "I think it'll definitely boost morale." Result is Positive Karl Pfauth isn't going to spend his windfall in one place. Pfauth, a 16-year Delta mechanic, plans
Slide 13: Others are Struggling to Get Employees Engaged
Others are Struggling to Get Employees Engaged
Slide 14: How Do We Sustain Momentum?
How Do We Sustain Momentum? Winning Together culture is part of our DNA Keep commitments Open, honest communications Fairness and respect Share success with everyone Alignment of management and frontline compensation Maintain top tier labor CASM Discipline in adding headcount Invest in the tools for