Specialist
Former project leader at Delta Air Lines Inc
Agenda
- Delta Air Lines' (NYSE: DAL) pandemic exposure relative to other legacy carriers
- Delta's market share, and potential go-to-market strategy changes
- Delta's cost structure, emphasising cost-cutting opportunities
- Ability to mitigate ongoing headwinds and potential recovery scenarios
Questions
1.
What has been the impact of coronavirus so far and how is Delta mitigating some of the impact? How would you compare it with other legacy carriers and the LCCs [low-cost carriers] and ULCCs [ultra-low- cost carriers]?
2.
Could you elaborate on the loyalty programme? Additionally, how do you anticipate revenue from ancillary services to trend once air traffic starts to return?
3.
How do you think the purchasing behaviour of leisure and business travellers might change to adjust to the current operating environment? Can you comment on travel frequency, willingness to pay and how travellers might approach different ancillary services?
4.
Prior to coronavirus, which ancillary service was the biggest revenue driver for Delta? How might that transition during the recovery stage and afterwards?
5.
How are other airlines reacting to the potential disruption in market share?
6.
If one of the major airlines files for bankruptcy, what could be the ripple effects?
7.
How do you assess the strength of Delta’s existing international partnerships with other airlines? What are the benefits of having it during the network planning process?
8.
Do you foresee a scenario where Delta or any of the other airlines might reconsider its JVs or partnerships?
9.
How would you value Delta’s current slots, gates and routes? What are the strengths and weaknesses?
10.
Assuming that some of the major airlines will focus more on domestic flights, is there a risk of Delta losing any market share, or is there an opportunity for it to gain market share anywhere?
11.
Can you provide some examples of potential routes or hubs that Delta might consider abandoning or downsizing?
12.
Delta’s daily cash burn was as high as USD 100m per day but it was able to reduce it to USD 27m in June and expects the same in July. What does that suggest about the runway Delta has to further drive cash burn down?
13.
If demand starts to deteriorate once again, could the daily cash burn of USD 27m increase?
14.
If we assess the cost-cutting actions taken so far and the actions Delta could potentially take, how reversible are they? How might they jeopardise Delta’s long-term competitive positioning?
15.
Delta has announced it will retire the 777 and 737-700 seats and other platforms. What is your assessment of the platforms it retired? Besides the 767, are there any other models that could be at risk of retirement?
16.
What are your thoughts on Delta’s loyalty programme? What is unique about it in comparison to Delta’s peers? What are your thoughts on Delta’s success with regards to expanding and growing it?
17.
What sort of retention rate is there for customers that are part of the Delta loyalty programme vs those that are not? How should we think about the two?
18.
How might some of the airlines perform during a recovery? Who might lead a recovery and who might lag behind? How might the legacy LCCs and ULCCs perform?
19.
Do you have any thoughts on Allegiant airlines and how it might behave currently and during a recovery?
20.
What can Delta or the airline industry as a whole do to further stimulate demand? What responsibilities will fall to the airlines vs the airports?
