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Delta to join S&P 500 after close of trading on September 10

(Reuters) – Delta Airlines will join the SP 500 index after the close of trading on September 10, replacing BMC Software , Standard Poor’s said on Friday.

Shares of Delta, the second largest carrier behind United Continental , rose 4.6 percent to $20.80 in after-hours trading.

BMC will be replaced in the index on Tuesday because Bain Capital LLC is expected to complete its acquisition of BMC on or around that day, SP said.

Delta, which filed for bankruptcy in 2005 and acquired Northwest Airlines in 2008, has improved profits and reduced debt in recent years. It last paid a common stock dividend in 2003, and its last share buyback plan was in 2000.

To cut costs, Delta has been retiring fuel-guzzling planes and acquiring used aircraft, and it bought a Pennsylvania oil refinery last year.

In May, Delta said it planned to return $1 billion to shareholders over the next three years, starting with its first dividend in a decade and a $500 million share buyback program. The initiatives are part of a five-year plan that seeks to generate as much as $5 billion in value for investors.

Airlines, which weathered a tough decade after the September 11, 2001, attacks, have gained more solid financial footing and are now focusing on improving their investment potential.

(Reporting by Nicola Leske; Editing by Bernard Orr and Leslie Adler)

Delta To Join S&P 500 After Close Of Trading On Sept 10

NEW YOEK: Delta Airlines will join the SP 500 index after the close of trading on September 10, replacing BMC Software, Standard Poor’s said on Friday.

Shares of Delta, the second largest carrier behind United Continental UAL.N, rose 4.6 percent to $20.80 in after-hours trading.

BMC will be replaced in the index on Tuesday because Bain Capital LLC is expected to complete its acquisition of BMC on or around that day, SP said.

Delta, which filed for bankruptcy in 2005 and acquired Northwest Airlines in 2008, has improved profits and reduced debt in recent years. It last paid a common stock dividend in 2003, and its last share buyback plan was in 2000.

To cut costs, Delta has been retiring fuel-guzzling planes and acquiring used aircraft, and it bought aPennsylvania oil refinery last year.

In May, Delta said it planned to return $1 billion to shareholders over the next three years, starting with its first dividend in a decade and a $500 million share buyback program. The initiatives are part of a five-year plan that seeks to generate as much as $5 billion in value for investors.

Airlines, which weathered a tough decade after the September 11, 2001, attacks, have gained more solid financial footing and are now focusing on improving their investment potential.- Reuters

DOT Favors Delta-Virgin JV

Delta Airlines Inc. (DAL) has secured a tentative approval from the U.S. Department of Transportation (:DOT) for its planned tie up with Virgin Atlantic for nonstop flights between the U.S. and the U.K. This takes Delta a step closer towards antitrust immunity, the final hurdle before the trans-Atlantic joint venture (:JV) takes off.

Notably, in Dec 2012, Delta proposed to acquire a 49% stake in British carrier Virgin Atlantic from Singapore Airlines. The acquisition closed in Jun 2013 after the U.S. Department of Justice and European Commission cleared the deal. However, DOT clearance for the trans-Atlantic route is pending.  

Now, the JV appears on track, with the DOT favoring the amalgamation citing it will promote competition within the U.S. and U.K. markets and in turn benefit customers. The DOT also noted that the JV will create a strong contender to one of the largest airline alliances, Oneworld, which includes heavyweights like American Airlines, British Airways and Iberia.

The $360 million stake purchase will subsequently give Delta more control over the New York to London network, which is being dominated by American Airlines and British Airways. The Delta-Virgin tie up is expected to hold the second spot in this lucrative route with nine daily roundtrip flights across the Atlantic, pushing United Continental Holdings Inc. (UAL) to the third position.

The DOT has given a 14-day period to raise objections to its approval. If there are no objections to the JV, the regulatory body will give its final go-ahead.

Per the joint venture agreement between Delta and Virgin Atlantic, both carriers will share the expenses and revenues of the flights. Delta holds a commanding position in the U.S. market while Virgin Atlantic enjoys hefty slots at the popular Heathrow Airport.

We believe the Delta-Virgin Atlantic alliance will hugely benefit customers with expanded and enhanced flight connectivity to key markets, better pricing and suitable booking options.

Delta operates with the likes of Southwest Airlines Co. (LUV) and carries a Zacks Rank #3 (Hold). However, sector stock U.S. Airways Group Inc. (LCC) looks attractive with a Zacks Rank #1 (Strong Buy).

Read the Full Research Report on DAL

Read the Full Research Report on UAL

Read the Full Research Report on LUV

Read the Full Research Report on LCC

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Delta flight from New Orleans makes emergency landing in Birmingham

BIRMINGHAM, Ala. — A Delta Airlines flight from New Orleans to Atlanta was diverted to Birmingham on Tuesday because of a report of smoke in the cockpit.

Delta Flight 2234 was just east of Montgomery when pilots aborted the flight plan and made an emergency landing at Birmingham-Shuttlesworth International Airport. The plane landed safely at about 3 p.m. Television station ABC33/40 reported that emergency crews inspected the plane and didn’t find any smoke or other signs of fire on the aircraft.

No injuries were reported in the incident.

City Helps 230 People Out Of Work After Delta Airlines De-Hubs

Delta Airlines pulled the plug on its hub at Memphis International Airport Tuesday, affecting 29 non-stop flights and 200 people who are now out of work.

“Most of the people affected there were Delta ground services folks,” said Laura Hine, the deputy director of business services at the city’s Workforce Investment Network.

Out of the 230 people who lost their job, around 50 were full-time. The rest worked 20 hours a week.

Hine said she’s helping the former Delta employees find new opportunities.

“We can provide them training and tuition reimbursement. As well as connect them with any job postings we are working on,” Hine said.

Many of Delta’s check-in counters are empty, and little is listed on the departure board.

The airline is down to about 60 flights a day.

Before Delta merged with Northwest, the two airlines offered four times that.

Airport Authority President Larry Cox says there is a silver lining, because new jobs will open up when new airlines move in.

Southwest is set to open in November with nine flights a day.

Cox said he is working to recruit others.

“We are looking at Allegiant Air. We are looking at Spirit and at Frontier,” Cox said.

Cox said he will be making some exciting announcements very soon.

To find more information on the Workforce Investment Network and job opportunities, head to their website: http://www.workforceinvestmentnetwork.com/

Delta plane makes emergency landing in Birmingham

BIRMINGHAM, Ala. (AP) – A Delta Airlines flight from New Orleans to Atlanta has been diverted to Birmingham because of a report of smoke in the cockpit.

Delta Flight 2234 was just east of Montgomery when pilots aborted the flight plan and made an emergency landing at Birmingham-Shuttlesworth International Airport. The plane landed safely at about 3 p.m. Television station ABC33/40 reported emergency crews inspected the plane and didn’t find any smoke or other signs of fire on the aircraft.

No one was injured in the incident.

Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

19,000 Delta flight attendants get mobile devices

The United States carrier, Delta Airlines, has said more than 19,000 of its flight attendants have started using new Windows Phone 8 handheld devices that will streamline onboard purchasing, as the American carrier continues its investment in technological innovation to improve the customer experience.

A statement from the airline office in Nigeria quoted its Senior Vice-President, In-Flight Service, Ms. Joanne Smith, as saying, “Delta’s 19,000 in-flight professionals are there for the safety and comfort of our customers, and equipping them with innovative solutions means they can better meet our customers’ needs onboard every flight.

“This is yet another way we’re investing in technology to improve the customer experience.”

According to the US carrier, the Windows Phone 8 device, a Nokia Lumia 820, enables Delta flight attendants to offer near real-time credit card processing for onboard purchases, including upgrades to the airline’s economy comfort seating.

Delta also said that onboard economy comfort upgrades would begin on transcontinental and international flights before being offered on flights across its system.

The new handheld device, according to Delta, will also help flight attendants to issue convenient e-receipts that can be emailed to customers.

It would also help customers to use pre-paid credit cards for onboard purchases, it added.

The new device would enhance quicker transaction processing times, and with the ability to read coupons displayed on a customer’s mobile device in the future.

The statement said, “On August 26, flight attendants on Delta Connection flights also will begin using the device. In the future, Delta expects to provide flight attendants with certain customer-specific information to enable more personalised service.”

It added, “This solution was developed by Microsoft, Avanade and ATT after months of development and feedback from flight attendants. The Windows Phone 8 devices will include a Delta-specific customer experience developed by Avanade on the Microsoft Dynamics for Retail mobile point-of sale platform and will operate over Wi-Fi and ATT’s 4G LTE Network. The agreement includes plans to expand the solution over the next three years to the newest Nokia devices.”

According to the airline, the new handheld device is Delta’s latest investment in technology for customers and employees, which in the past year has included the Fly Delta app for iPad, the launch of the new delta.com in December 2012 and revamped self-service kiosks in September 2012.

It said Delta also offered its popular Fly Delta app for iPhone, Windows Phone, Android and Blackberry smartphones, and now in-flight Wi-Fi on more than 800 aircraft.