Jetrader - November/December 2008 - 9

both airlines. In the meantime, we have
26 teams working on the planning of all
aspects of the integration such as the
frequent ﬂyer programs, crew scheduling,
employee integration and community
involvement, to name a few.

J: What are some of the primary
synergies you expect to realize
from the merger, and how long
do you expect it to take to recover the costs you will incur in
merging the two companies?
RA: The $2 billion in synergies will
come from both decreased costs and
increased revenues. For instance, on the
cost side, we will be moving to a singletechnology platform, which will result
in one reservations system, one revenue
management system and one operating
system, which brings us considerable
savings over the next two to three years.

J: Do you expect to see other U.S.
airlines merging in the next 12
months? In your view, what have
been the primary road blocks that
have prevented other U.S. airline
mergers?
RA: It is unlikely. Delta and
Northwest make the most sense of any
possible airline combination because
our route systems do not overlap. Delta
has a major presence in the southeast,
New York and across the Atlantic to
Europe, Africa and the Middle East.
Northwest has a solid presence in the
Midwest and in Asia. Together, our route
networks combine to create the most
comprehensive network in the world
and one that does not have overlap. In
almost any other combination you can
think of, there is overlap, which could
potentially have a negative impact on
employees and communities. We were
the only airlines to get it done because
we make the most sense together.

J: If fuel costs remain high, do
you expect to see any more major
U.S. carriers ﬁle for bankruptcy?
Do you expect to see any of them
cease operations, at least as an
independent carrier?
RA: It is hard to predict what will
happen. We are focused on making Delta
successful.

Photo courtesy of Delta Airlines

J: What can you tell us about
Delta's post-merger ﬂeet plans?
How long do you expect to continue operating the DC9s? Which
aircraft types do you see becoming the post-merger company's
core ﬂeet?

mestic ﬂights feed international
ones? Are code-share or other
arrangements with LCC's on the
horizon? Are there other changes
coming that will result in further
reduction in domestic ﬂying by
the legacy airlines?

RA: We are still studying the ﬂeet
types with the information that is publicly
available since the merger is not yet
complete. We believe there is opportunity
to increase revenues by right-sizing
aircraft to the right routes. It is another
strong case for the merger because this
ﬂeet ﬂexibility is a huge beneﬁt for us
and will help make us a much stronger
carrier.

RA: At Delta, we are working towards
a 50/50 domestic/international network
presence. But as PanAm proved years
ago, an international operation alone
is not sustainable so you have to make
the domestic and the international work
together. Legacy carriers like Delta have
a very different business model than
so-called low-cost carriers, so I do not
foresee codeshares between the two at
this time.

J: How comfortable do you feel
with the current aircraft trafﬁc
control system, and what issue(s)
would you like to see addressed
ﬁrst?
RA: The ATC system needs a dramatic
overhaul, and we are long overdue. We
must work together to demand that
Congress act to implement funding for
ATC overhaul. It is an antiquated system
that needs 21st century technology in
order to keep up with demand. A new FAA
funding bill must be passed in the next
administration. We have waited too long
already.

J: It seems that more and more
emphasis is being placed on international ﬂying and that domestic ﬂying is only proﬁtable to
the extent that it feeds the international network. What changes
do you see coming in the way do-

J: What are the primary areas
where you think the U.S. airlines
should focus their energy on doing better?
RA: At Delta, our goal is to provide
customers with an experience that is
safe, clean, on time, with bags delivered
and courteous customer service. We are
in the top tier among our peers in most
areas. We are also making every effort
to take care of our customers during
irregular operations, be it ATC or weather.
We are investing heavily in technology
to help ensure that our customers are
automatically rebooked and their needs
are met. Overall, we have to continue to
deliver a safe, reliable ﬂight experience.

J: What do you think the industry as a whole has done well this
decade?
RA: Right sizing capacity to demand.
Jetraderr 9

Jetrader - November/December 2008

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