1. Company Presentation by Joe Romeo

2.  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

3.  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

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.  Those who have to travel often or far Target Market

7.  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

8.  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) Secret Sauce

9.  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