EXHIBIT 99.2
[Delta logo]
Internal Memorandum
Date: September 7, 2005
TO: All Delta People
FROM: Jim Whitehurst, Chief Operating Officer
RE: Stepping Up the Transformation Plan - Strengthening our Network
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In Jerry's July 26th memorandum to us, he conveyed that the senior leadership
team was continuing to identify additional, innovative ways to "get the most out
of what our network and fleet have to offer" as a part of our on-going effort to
expand and step-up the pace of our transformation. Today, we are announcing the
latest in a series of integrated improvements to further strengthen our network
by continuing to right-size our hubs, increase international flying and simplify
our fleet - all key components of our Transformation Plan. (FOR THE FULL
DETAILS, VIEW DELTA'S PRESS RELEASE AT HTTP://NEWS.DELTA.COM/ UNDER THE
"NEWSROOM" HEADLINE.)
RIGHT-SIZING OUR HUBS: Cincinnati is and will continue to be an important
component of our network. Cincinnati, however, is currently oversized relative
to local traffic. We are therefore making scheduling changes to better match our
service to local passenger demand and to optimize the balance of local and
connecting traffic across our network. Effective December 1, we will reduce
mainline and DCI capacity by 26 percent, while boosting the percentage of local
hub Cincinnati traffic from 36 percent to nearly 50 percent - well in line with
other Delta and competitor hubs.
In keeping with our customer-focused commitment, these scheduling changes will
have virtually no effect on the services the traveling public has come to expect
from Delta, the number one airline in the market. We will increase customer
choice during preferred travel times by consolidating flights into fewer flight
banks and reducing flights in off-peak hours. With the new schedule, Delta will
offer 442 daily departures to 122 non-stop markets from Cincinnati, including
the same extensive international schedule currently offered. Importantly
Cincinnati, as an international gateway, will remain Delta's second largest hub
and retain its status as one of the top 10 airline hubs in the United States. In
nine DCI markets currently served from Cincinnati, we will be replacing non-stop
service with connecting service through the Atlanta hub.
As with previous schedule changes, our ability to maintain the flight schedules
and levels of service our Cincinnati customers expect is being achieved by
increasing the efficiency and productivity of our airline. This fall's changes
are expected to boost Delta's overall productivity at the Cincinnati hub and
create a path to return the hub to profitability. And as we've seen through
Operation Clockwork in Atlanta and through productivity enhancements at other
hubs, your continued determination to work smarter and more efficiently is
allowing Delta to respond quickly to increasing competitive pressures and will
make our company stronger against competitors of all types.
We regret that these changes will have an impact on our employees in the area
and their families, with in the range of 1,000 Delta and Comair positions
affected; at this time, however, the actual number of involuntary job losses is
not known because we are working to minimize that number by offering relocation
and other opportunities to affected Delta people. Lee Macenczak, Joe Kolshak and
other divisional leaders are meeting with Cincinnati employees today to discuss
the plan, the impact and options being made available. Comair will announce
options for its employees separately.
INCREASING INTERNATIONAL GROWTH: To respond to increased demand for service to
emerging business and leisure destinations, our winter schedule adds new service
to cities in such countries as Germany, Honduras, Jamaica, and Nicaragua. These
will complement the new or expanded service we've added to 41 international
destinations, maintaining our position as the leading U.S. carrier across the
Atlantic and the No. 3 carrier to Latin America and the Caribbean - one of the
world's fastest growing regions.
Delta also will add more flights to Hawaii with the first non-stop service
between Atlanta and Maui. The new Atlanta-Maui route strengthens our position in
the increasingly competitive Hawaii market, bringing to 11 the number of daily
Delta departures between the U.S. mainland and Hawaii.
SIMPLIFYING OUR FLEET: To support our plan's goal of reducing fleet complexity
by up to four types in approximately four years, we are accelerating the removal
of service of the 767-200 fleet type. These aircraft are scheduled to be removed
from service by Dec. 1 2005, with the majority scheduled to be sold to ABX Air,
Inc., through a transaction being announced separately today.
Together with earlier, major initiatives such as dehubbing DFW, the launch of
Clockwork and SimpliFares, these network improvements build on others recently
announced, including:
- -- increasing point-to-point flying and adding new DCI carriers and routes,
most recently adding the first two-class Delta Connection service with
Delta Connection carrier Shuttle America.
- -- increasing Delta Shuttle capacity with a younger MD-88 fleet
- -- introducing trans-continental Song flights
- -- reaching a definitive agreement to sell ASA to SkyWest
Make no mistake: Delta's Transformation Plan is on track and delivering its
targeted benefits. Chief among them, Delta has:
- -- achieved a positive year-over-year increase in consolidated revenue per
available seat mile (RASM) - up 1.2 percent over the second quarter of
last year
- -- reduced narrow-body turn times in Atlanta by 10 minutes since 2004
- -- relaunched the delta.com Web site and achieved a 21 percent increase in
bookings in the first four days, with revenues increasing by 14 percent
over the same period last year
- -- freed up the equivalent of 39 aircraft through improved aircraft
utilization
- -- completed the refurbishment of one-third of our mainline and Song fleet
Thanks to these initiatives and the resilience of all Delta people, we achieved
the lowest mainline CASM of any network carrier (excluding special items) in the
second quarter and have recently been named the most preferred airline for
business travelers by the YPB&R/Yankelovich Partners 2005 National Business
Travel Monitor.
Unfortunately, the high cost of fuel - now made worse by catastrophic
devastation to the Gulf Coast - continues to outpace and mask our progress.
Because of the extreme seriousness of our financial situation, it is critically
important that we continue to step up the pace of our transformation and stay
focused on delivering great customer service. Clearly all Delta people have
stepped up to the plate; we could only have accomplished what we have to date
with everyone pulling together. On behalf of the entire senior leadership team,
thank you for all you are doing and the crucial role you will play as we
accelerate our transformation plan to strengthen our company.