Delta Air Lines Inc.
), one of the leading U.S. airlines, has launched its new Fly
Delta application for iPad users. The offering, labeled Glass
Bottom Jet, allows iPad users to access maps and social
networking while flying on Delta's Wi-Fi connected aircraft. The
app will also help travelers book a trip, offer destination
guides, flight check-in and updates on the next point of the
The launch of the new application is a part of the company's
$140 million investment strategy in technologies, which also
includes the launch of new Delta website and renovating
self-service kiosks installed last year. The company is also
progressing well on improving ancillary revenues by adding new
features to its services as well as expanding new products to
improve passenger satisfaction and experience.
Delta Air Lines is investing more than $2 billion through 2013
on improved products, services and airport facilities in the air
and on the ground. Delta is also expanding seating facilities as
well as installing winglets and Wi-Fi connectivity in the fleet.
We believe the enhanced customer experience will lead to
increased market traction and generate significant growth for the
The company is moving ahead with the introduction of full
flat-bed seats in Business Elite class, expansion of the First
Class cabin on more fleets and increasing Economy Comfort or
Economy Plus seats. Moreover, Delta is going wireless with
in-flight entertainment system - Delta Connect. These efforts to
upgrade fleet products and services are expected to generate
additional revenue of $1 billion by 2013.
We believe Delta Air Lines remains well positioned to benefit
benefited from its investments made to improve operating
efficiencies and customer experience. The company is successfully
realizing benefits from the Northwest merger.
However, we are concerned about fuel price volatility,
unionized labor, new advertising policy and competitive threats
that are restraining the upside potential of the stock. In
addition, the company faces stiff competition from carriers like
United Continental Holdings, Inc.
Delta Air Lines retains a Zacks Rank #3 (Hold). For the long
term, we have a Neutral recommendation on the stock.
DELTA AIR LINES (DAL): Free Stock Analysis
UNITED CONT HLD (UAL): Free Stock Analysis
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