Delta Air Lines Inc.
) has signed an agreement with leading global travel distribution
services and e-commerce provider, Travelport. Per the deal, Delta
will be able to obtain data and intellectual property rights
integral to its passenger service and flight operations
The pact will make Delta the only U.S. carrier enjoying the
rights to directly control these technology systems offered by
Travelport, thus enabling enhanced travel experiences for its
customers. No financial terms and conditions of the deal were,
The agreement terms as stated in the press release incorporate
transfer of direct control and operations of passenger service
systems and flight operations of Delta. The system infrastructure
will continue to be run by Travelport at its Atlanta data
center; however, over 175 of its technology professionals will be
transferred to Delta with effect from July 1. Notably, the new deal
will have no effect on the existing Global Distribution Systems
pact between the companies already renewed in 2013.
Delta is progressing well on improving ancillary revenues by
enhancing its services as well as introducing products to improve
passenger satisfaction and experience, both in air and on ground.
In an attempt to enhance its fleet structure, amenities, products
and technological base, Delta aims to invest $2.0-$2.5 billion
annually, over the next five years. The company has recently
initiated services from Terminal 4 at New York's John F. Kennedy
(JFK) International Airport.
In the coming months, Delta will continue to upgrade facilities
at the JFK hub, along with investment of $229 million to renovate
Terminal 5 at Los Angeles International Airport. Delta has
completed the installation of full-flatbed and business elite seats
on long-haul flights and is the sole U.S. carrier at present to
offer this on-demand entertainment service. The carrier expects to
invest $750 million over the next two-year period to roll out
in-flight Wi-Fi services as well as renovate the interiors of its
narrow-bodied aircraft over the next three years. These investments
will extend the quality and longevity of Delta's fleet, thus
postponing the need for aircraft purchase, in turn, reducing the
carrier's capital expenditure.
Delta currently sports a Zacks Rank #1 (Strong Buy).
Other Stocks to Consider
Other stocks sporting a Zacks Rank #1, worth considering in this
Alaska Air Group, Inc.
American Airlines Group Inc.
Era Group Inc.
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