Company Presentation by Joe Romeo

 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. Product

 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 History

Financials  Revenue in 2010: billion  Shares Outstanding: million  Total Cash: 3.61 billion  Total Debt: billion

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

 Those who have to travel often or far Target Market

 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! Competitors

 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 miles) Secret Sauce

 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 Future of Delta Skymiles