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Delta Beefs Up Routes, Retrofits Its Jets

New Entertainment System Will Jazz Up Longer Flights

By Dan Schlossberg
ConsumerAffairs.com

October 17, 2006

Delta Airlines • SkyMiles • Travel vouchers • Delta/AmEx promotions • European promotions • Reservations & itinerary changes • Lost/damaged luggage • Unaccompanied children • Puerto Rico USA • Miscellaneous --- News • Delta Reduces Capacity As Fuel Prices Rise • Delta Cuts Flights in Slowing Economy • Delta Alters Fees to Conform to Northwest's • Delta, Northwest Complete Merger • Delta Adding Wi-Fi to All Flights • Delta Raises Second Checked Bag Fee to $50 • Delta Passengers Stranded 7 Hours on Plane • Delta Sells Ads on Boarding Passes • Delta, Northwest Merger Faces Heavy Chop • US Airways Makes Bid for Delta • Delta Beefs Up Routes, Retrofits Its Jets • Delta Begins Passing On Airport Fees To Passengers • Delta Writes Coda to Song • Delta Files for Bankruptcy • Delta Sells Regional Carrier To Raise Cash • Delta Abandons $499 Fare Cap • Delta Warns of Bankruptcy • Delta Passengers To Brown Bag It • Delta Cuts Fares

After coming this close to extinction, Delta Air Lines hopes its new leaner-but-meaner approach will win approval from the flying public.

Though still stuck in bankruptcy protection, America's third-largest carrier is placing more emphasis on inflight entertainment and overseas schedules -- moves it hopes will put it ahead of the competition.

Though total flying capacity is down by seven per cent, Delta now ranks No. 1 in flights between the U.S. and Europe, topping British Airways. The recent addition of 50 new flights -- to Europe, Latin America, and the Caribbean among other destinations -- helped, though the carrier lost a bid for a China route and still has only one daily flight between the U.S. and Japan.

After avoiding a pilots strike that could have grounded it, Delta reported a second-quarter profit in 2006 that was its first in five years. It also saved money by terminating a pilot pension plan that was underfunded.

The carrier also announced:

• A new in-flight entertainment system for passengers on long domestic flights
• Lie-flat seats in business class on all of its 767s and 777s by 2010
• Addition of JFK to a hub system that already includes Atlanta, Cincinnati, and Salt Lake City.

Installation of new entertainment system will require retrofitting of 117 planes -- an enormous expense but a worthwhile one, according to executives of the airline.

"This was designed to help us gain market share," said Jim Whitehurst, Delta's chief operating officer. "We need to have a transcontinental product we can be proud of."

All Delta flights of four hours or more from Atlanta, Salt Lake, and New York will have the new entertainment system by March 2008. It will give every passenger access to 20 movies, 24 TV channels, 10 video games, and 1,600 songs. The only charge will be $5 for movies in coach.

Delta's short-lived offshoot Song won passenger raves for its entertainment system, consisting primarily of setback television. Other carriers have reported a similar reaction.

A foldout monitor equipped with an on-demand entertainment system will be part of the lie-flat seats targeted for business class in two Delta 777s ticketed for 2008 arrival.

With more overseas flights, less competition from low-cost carriers, and a greater New York presence, Delta hopes to at least double its revenue from international flights, about 20 per cent last year. Meeting that goal should help it emerge from bankruptcy on time in the middle of next year.

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