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By John McCormick  |  Posted 2003-04-01 Print this article Print

Before its industry went into a tailspin, Delta Air Lines invested $1.5 billion in an instant information network to serve customers better and save millions of dollars. Will that be enough to make it the last major airline able to attract price-conscious

Air Lines Base Case">

Delta Air Lines Base Case

Delta Air Lines Base Case

Headquarters: Hartsfield Atlanta International Airport, Atlanta, GA 30320

Phone: (404) 715-2600

Business: Commercial airline

CIO: Curtis W. Robb

Financials: Revenue of $13.3 billion in fiscal 2002; net loss $1.3 billion or -$10.44 per share

Challenge: Become the first hub-and-spoke carrier to create a successful low-cost airline that can survive competition with JetBlue and Southwest

Baseline Goals:

  • Cut $1 billion in costs in 2003, $2.5 billion total in 2005
  • Reduce cash burn from $124 million in 2002 to zero
  • Cut unit costs 15% by 2005
  • Cut an additional 8,000 employees by May 2003
  • Expand online tickets to 50% of sales, from 26% in 2002

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