Q3 - OE_Strengths
What do you see as Delta’s particular strengths?
"Operational reliability. Favorable employee relations. Disciplined capital allocation."
Q4 - OE_Weaknesses
What do you see as Delta’s particular weaknesses?
"Not specific to Delta, but exposure to international markets. Non-US markets. Delta has a significant international franchise and from time to time there is overcapacity, which Delta doesn't control. You're subject to fluctuations in economic growth in some of these international markets. Exposure to international capacity trends and at times economic weakness."
Q6 - OE_StrategyElements
Based on communications from Delta, what are the main elements of management’s business strategy?
"Capacity discipline would be one. Very disciplined growth profile. Disciplined capital allocation. They're certainly trying to project or communicate sustainability with respect to their results."
Q7 …show more content…
The two things, there are probably three things that investors may be doubting a bit about Delta. One was saying one thing on capacity but doing another, and they've made good process there with their disciplined commitment to keep the business capped at 1%. The other concern that they're well aware of is this idea that they're persistently optimistic with their guidance, and they had to guide down a lot over the last two years. They're addressing that with this slower growth plan, but that's still a concern that's out there. And then lastly is this feeling among investors that the capex plan, the investment plan for the company, has had an upward bias and continues to creep higher. And on points one and two, they've made progress. They're addressing the concerns that they've identified. On point three, it's important to highlight to them that as investors have met with the CFO over the years that the capex, the investment level has crept higher and higher and higher. And that is an investor