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).

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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.

Body of scholar held in Japan due to misplaced documents

PETALING JAYA, Malaysia – The body of MCA scholar Goh Siow Chong, who died in the United States, has yet to arrive home as it is being held in Japan following misplaced documents.

MCA Youth chief Datuk Dr Wee Ka Siong said the body, which was supposed to arrive in KL International Airport at 4.30am yesterday, was currently in a Delta Airlines warehouse at Narita Airport pending proper documentation.

“The authorities in Japan are waiting for the documentation from Delta Airlines before the body can be released to MASkargo to be brought here. Delta Airlines had booked the next flight from Narita at 10.30am to arrive here at 4.45pm but Customs clearance was not given. Hence, that flight was also missed,” he said.

Dr Wee added that MASkargo officials were currently negotiating with the Japanese authorities to expedite the process of bringing Goh’s body back to Malaysia.

Goh, also known as Manford, was on a scholarship for a PhD in neuroscience from the Rutgers University in New Jersey when he died of brain cancer on Aug 17.

He had received a scholarship under the MCA Youth campaign some eight years ago to study Form 4 and 5 in MRSM Bakri.

Goh’s father had travelled to the United States upon hearing of his son’s death and returned to Kuala Lumpur two days ago.

Speaking to The Star, Dr Wee expressed his disappointment that no one had been informed of the documentation problem, including Goh’s family.

Goh’s mother, a fruit seller, and his sister had travelled from Malacca to KLIA to receive the body, waiting in vain until about 7.30am. Malacca Chief Minister Datuk Idris Haron’s special secretary was also at the airport.

Plane makes emergency landing in Montgomery

MONTGOMERY, AL (WAFF) –

190 people arrived safely in Atlanta Sunday night after an unexpected emergency layover in Montgomery.

A Delta official said that Flight 534 was en route from Cancun, Mexico to Atlanta, Georgia when a fluorescent light failed, and the pilots noticed a “smoky odor” shortly afterward. The official said the pilots re-routed to Montgomery, and a safe emergency landing was performed.

Officials said there were 190 people on board at the time, including 184 customers and six crew members. Montgomery Regional does not have a customs department, and due to it being an international flight, passengers were evacuated to a secure area without connection to the rest of the airport. 

No injuries were been reported. Another plane was flown into Montgomery for the passengers, and the flight landed in Atlanta at 8:07 p.m. local time, some four hours after their first plane was originally due. 

Copyright 2013 WAFF. All rights reserved.

Delta flight makes emergency landing at Montgomery Regional

Authorities confirm a Delta Air Lines plane en route from Cancun to Atlanta made an emergency landing at Montgomery Regional Airport on Sunday afternoon. 

The plane, Delta Flight 534, was carrying 184 passengers and six crew members. 

Delta officials report one of the pilots noticed a smoky odor produced from a failed fluorescent light in the plane. The flight was immediately re-routed to Montgomery Regional as a precaution.

Montgomery Regional does not handle international flights, and passengers have been moved to a secure location while they wait for a second plane from Atlanta. 

 No injuries have been reported. 

Copyright 2013 WSFA 12 News.  All rights reserved

ObamaCare will cost Delta Airlines $100M in 2014

 

Delta Air Lines has issued an urgent warning about the impact of ObamaCare, claiming the law’s implementation will contribute to a roughly $100 million increase in health care costs next year alone. 

The astonishing figure was included in a letter from Delta executive Robert Kight to officials in the Obama administration. The website RedState.com was the first to obtain and publish the letter earlier this week. 

A representative with Delta confirmed the authenticity of the letter to FoxNews.com. 

“Like many large companies, Delta faces significantly increased healthcare costs in 2014 and beyond,” the company said in a statement on Friday. “Delta will absorb the vast majority of those increased costs so that we can continue providing a high value, high quality health plan. Consistent with our culture, Delta will always keep the best interests of our people in mind in connection with the healthcare and other benefits we provide.” 

In the original letter, Kight disputes the notion that the law — the biggest parts of which take effect at the start of 2014 — will mean “business as usual” for big employers. A combination of factors, he claimed, will “mean that the cost of providing health care to our employees will increase by nearly $100,000,000 next year.” 

Part of that is normal medical inflation and the phase-out of an assistance program tied to the health care law. But a large chunk of it, the exec claimed, comes from various fees and costs associated with the implementation of the health care law. 

One of the costly items pertains to an annual fee of $63 per “covered participant” next year. The company estimates this means a more than $10 million expense in 2014. The catch for Delta is that, because many of their employees insure through Delta, the fee meant to help subsidize the health care law’s coverage amounts to a “direct subsidy” from the company that provides “zero direct benefit to our participants,” Kight said. 

Another added cost comes from the requirement to cover children and young adults on parents’ plans until they’re 26 years old. Kight reports that the change led to 8,000 more people being added to their rolls, at an annual cost of $14 million. 

Further, the individual mandate — or the requirement on individuals to obtain health insurance — is expected to drive more people into the company plan and drive up their costs by another $14 million. 

The letter, which was dated June 13, is among the latest warnings to emerge about the looming costs to businesses from the health care law. 

The administration and other supporters of the law argue that it will expand coverage to millions, and use subsidies to help those in need purchase insurance. 

But in the process, employers claim they are being forced to change or downsize policies, and reduce worker hours. The latter change is being made because a provision in the law, eventually, will mandate insurance coverage for employees working 30 or more hours — some are trimming their staff to avoid crossing that threshold. 

Inside Higher Ed reported on Friday that Southern Illinois University was the latest to move in that direction, reportedly by limiting the workload of graduate assistants. 

Other employers like UPS this week announced that they were planning to end coverage of workers’ spouses in part over concern about ObamaCare-tied costs.