UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
July 27, 2015
DELTA AIR LINES, INC.
(Exact name
of registrant as specified in its charter)
Delaware |
001-05424 |
58-0218548 |
(State or other jurisdiction
of incorporation) |
(Commission
File Number) |
(IRS Employer
Identification No.) |
P.O. Box 20706, Atlanta, Georgia 30320-6001
(Address of principal executive offices)
Registrant’s telephone number, including
area code: (404) 715-2600
Registrant’s Web site address: www.delta.com
Check the appropriate box below if the Form 8-K filing is intended
to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction
A.2. below):
[_] Written communications pursuant to Rule 425 under
the Securities Act (17 CFR 230.425)
[_] Soliciting material pursuant to Rule 14a-12 under
the Exchange Act (17 CFR 240.14a-12)
[_] Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[_] Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 8.01 Other
Events.
Delta Air Lines, Inc. today issued a joint press release with China
Eastern announcing an agreement to expand their commercial relationship. The press release is attached as Exhibit 99.1.
Statements in this Form 8-K and the attached
exhibit that are not historical facts, including statements regarding our estimates, expectations, beliefs, intentions, projections
or strategies for the future, may be “forward-looking statements” as defined in the Private Securities Litigation Reform
Act of 1995. All forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ
materially from the estimates, expectations, beliefs, intentions, projections and strategies reflected in or suggested by the forward-looking
statements. These risks and uncertainties include, but are not limited to, the cost of aircraft fuel; the availability of aircraft
fuel; the impact of rebalancing our hedge portfolio, recording mark-to-market adjustments or posting collateral in connection with
our fuel hedge contracts; the possible effects of accidents involving our aircraft; the restrictions that financial covenants in
our financing agreements will have on our financial and business operations; labor issues; interruptions or disruptions in service
at one of our hub or gateway airports; disruptions or security breaches of our information technology infrastructure; our dependence
on technology in our operations; the effects of weather, natural disasters and seasonality on our business; the effects of an extended
disruption in services provided by third party regional carriers; failure or inability of insurance to cover a significant liability
at Monroe’s Trainer refinery; the impact of environmental regulation on the Trainer refinery, including costs related to
renewable fuel standard regulations; our ability to retain management and key employees; competitive conditions in the airline
industry; the effects of extensive government regulation on our business; the sensitivity of the airline industry to prolonged
periods of stagnant or weak economic conditions; the effects of terrorist attacks or geopolitical conflict; and the effects of
the rapid spread of contagious illnesses.
Additional information concerning risks
and uncertainties that could cause differences between actual results and forward-looking statements is contained in our Securities
and Exchange Commission filings, including our Annual Report on Form 10-K for the fiscal year ended December 31, 2014. Caution
should be taken not to place undue reliance on our forward-looking statements, which represent our views only as of July 27, 2015,
and which we have no current intention to update.
Item 9.01 Financial
Statements and Exhibits.
(d) Exhibits.
|
Exhibit 99.1 |
Press Release dated July 27, 2015 titled “China Eastern and Delta solidify strategic partnership” |
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.
|
DELTA AIR LINES, INC. |
|
|
|
By: /s/ Paul A. Jacobson |
Date: July 27, 2015 |
Paul A. Jacobson
Executive Vice President and Chief Financial Officer |
EXHIBIT INDEX
Exhibit Number |
Description |
|
|
Exhibit 99.1 |
Press Release dated July 27, 2015 titled “China Eastern and Delta solidify strategic partnership” |
EXHIBIT 99.1
FOR IMMEDIATE DISTRIBUTION
CONTACT: |
Delta Corporate Communications |
|
404-715-2554 / +81 3-5400-7145 |
|
|
|
China Eastern Airlines Public Relations |
|
+86 21 22331435 |
China Eastern and Delta solidify strategic
partnership
$450 million investment connects two complementary
airline networks
SHANGHAI and ATLANTA, July 27, 2015 – China Eastern Airlines
and Delta Air Lines today signed an agreement to expand their partnership and better connect Delta’s global network with
China Eastern, one of the leading airlines in China. The agreement will include a $450 million investment by Delta to acquire a
3.55 percent stake in China Eastern.
This move marks a significant step in the airlines’ collaboration
and partnership that will allow Delta and China Eastern to compete more effectively on routes between the U.S. and China, provide
more travel options for customers in both countries and make joint investments in the customer experience.
“The execution of the Subscription Agreement and the launching
of commercial cooperation plan by China Eastern and Delta indicate significant strategic moves of China Eastern to comprehensively
reform further, actively explore and develop mixed ownership economy, and actively promote globalized development,” said
Shaoyong Liu, China Eastern CEO. “The cooperation of the parties is based on a global vision and joint strategic blueprint.
The parties will take advantage of their respective route networks, flight services, relevant businesses and advantageous resources
to fully connect the world’s two top economies as well as two top air transportation markets. The parties wish, through excellent
operation and international cooperation, to optimize customer experience, enhance the parties’ global competitiveness and
promotes the development and revenue growth of both parties.”
“Delta’s relationship with China Eastern is long-standing.
We share a vision that will create the most profitable, enduring franchise between the U.S. and China, with world-class customer
service,” said Richard Anderson, Delta CEO. “For the past three years, Delta has welcomed members of the China Eastern
team at our headquarters for sharing best practices and work study opportunities. We have learned much from one another already
and look forward to deepening our already effective partnership.”
China Eastern, with its wholly owned subsidiary Shanghai Airlines,
and Delta currently operate codeshare flights on 30 domestic routes in the U.S., 43 domestic routes in China and seven trans-Pacific
routes between China and the U.S. China Eastern serves the three largest U.S. markets, with four nonstop flights from Shanghai
and Delta serves the three largest cities in China with six daily non-stop flights from the U.S.
China Eastern and Delta continue to strengthen cooperation and support
each other in the China-U.S. market through greater access to each other’s networks and an improved customer experience.
Among recent improvements:
| · | China Eastern and Delta have expanded their joint China-U.S. offering
– further cementing their position in the largest market to/from Shanghai – with Delta’s recent addition of new
Los Angeles to Shanghai service. |
| · | Delta’s recent move to Terminal 1 at Shanghai’s Pudong
Airport to co-locate with China Eastern and Shanghai Airlines has resulted in more convenient connections and a seamless airport
and baggage experience for customers. |
| · | Newly developed joint corporate sales provide more competitive products
to customers in China and the U.S. |
Equity investment
As part of the enhanced strategic partnership,
China Eastern and Delta entered into a conditional subscription agreement where Delta will invest $450 million in China Eastern’s
H-shares, which trade on the Hong Kong Stock Exchange. The investment equals approximately 10 percent of China Eastern H shares
and [3.55] percent of the total shares of China Eastern. Delta also will be entitled to an observer seat on the China Eastern board
of directors. The agreement is conditioned upon achievement of a final marketing agreement and approval by each carrier’s
board of directors.
“The cooperation between China Eastern and Delta is a strategic
cooperation between two excellent airlines which connect the world’s two top economies as well as two top air transportation
markets. We’re fully confident in the prospect of the cooperation,” said Shaoyong Liu, the Chairman of China Eastern.
“Delta’s equity investment in China Eastern is an investment
in the future success of the partnership,” Anderson said. China is the second largest travel market from the US and is projected
to grow more than twice the global average, becoming the largest market from the U.S. in the next few years.
China Eastern in the U.S.
China Eastern will operate 35 weekly departures to 4 destinations
in US from Shanghai, 2 flights a day to Los Angeles, daily to New York, San Francisco and Hawaii, also 3 flights a week from NanJing
to Los Angeles. China Eastern operates Luxurious new 777-300ERs on routes between China and North America, which will be a major
market for China Eastern over the future years. China Eastern plans to open new routes to North America and also boost frequencies
on existing routes.
Delta in China
Delta will operate 28 weekly departures to Shanghai this
summer. Delta also offers daily service to China's capital, Beijing, from Seattle and Detroit and to Hong Kong
from Seattle. Delta has grown its China network by nearly three times in the past five years.
The partnership with China Eastern is part of Delta's broader strategy
to collaborate and expand services to China and offer the most robust global airline network to become a more prominent
U.S. carrier while continuing to offer the most robust network choices of a U.S. global carrier.
Delta is making significant
investments to build the most Chinese-friendly U.S. airline. Chinese travelers are well served with local language options on delta.com,
at airport self-service kiosks and among in-flight entertainment selections. The airline has Chinese-speaking flight
attendants on every flight to and from China and offers Chinese cuisine among its in-flight meal options. Delta
launched its official WeChat account to provide Chinese customers with in-language flight information, marketing promotions
and tips for popular Delta destinations through China's most popular SNS service.
About China Eastern
Headquartered in Shanghai, CEA is
one of the leading airlines in China. It has been listed in Shanghai, Hong Kong and New York since 1997, which is the first airline
in the civil aviation industry in China that achieved listing in three markets. Adhering to the philosophy of “Customer-Oriented
and Dedicated Service,” CEA has been providing safe and comfortable air journeys to passengers for many years and in many
occasions been named "The Most Popular Airline" by internationally-recognized institutions. The fleet of the Company
comprised a total of 550 modern aircraft and freighters. Leveraging upon Shanghai core hub and Xi’an and Kunming regional
hubs, it has established and extended its aviation transportation network to cover 1,052 destinations in 177 countries. With an
extensive global outreach, the Company provides quality services to more than 90 million travelers all over the world every year.
The Company joined SkyTeam Alliance in 2011. Its Eastern Miles frequent flyer program now has 22.84 million members who can enjoy
member benefits offered by 20 airlines of SkyTeam Alliance and lounge access to 516 lounges worldwide. With the concept of “World-class
hospitality with Eastern charm,” China Eastern creates splendid travel experiences for global customers with an “accurate,
delicate and precise” service quality. The Company strives to become an integrated aviation services and logistics services
provider that is “cherished by staff, preferred by customers, satisfied by shareholders and trusted by society.”
Website : www.ceair.com; Customer service line : +86
(95530).
About Delta
Delta Air Lines serves more than 170
million customers each year. Delta was named to FORTUNE magazine’s top 50 World’s Most Admired Companies in addition
to being named the most admired airline for the fourth time in five years. Additionally, Delta has ranked No.1 in the Business
Travel News Annual Airline survey for four consecutive years, a first for any airline. With an industry-leading global network,
Delta and the Delta Connection carriers offer service to 334 destinations in 64 countries
on six continents. Headquartered in Atlanta, Delta employs nearly 80,000 employees worldwide and operates a mainline fleet of more
than 700 aircraft. The airline is a founding member of the SkyTeam global alliance and participates
in the industry’s leading trans-Atlantic joint venture with Air France-KLM
and Alitalia as well as a joint venture with Virgin Atlantic.
Including its worldwide alliance partners, Delta offers customers more than 15,000 daily flights, with key hubs and markets including
Amsterdam, Atlanta, Boston,
Detroit, Los Angeles, Minneapolis/St. Paul,
New York-JFK, New York-LaGuardia, Paris-Charles
de Gaulle, Salt Lake City, Seattle
and Tokyo-Narita. Delta has invested billions of dollars in airport facilities, global products
and services, and technology to enhance the customer experience in the air and on the ground. Additional information is available
on the Delta News Hub, as well as delta.com, Twitter
@DeltaNewsHub, Google.com/+Delta,
Facebook.com/delta and Delta’s blog takingoff.delta.com.
Forward Looking Statements
Statements in this press release that are not historical facts,
including statements regarding our estimates, expectations, beliefs, intentions, projections or strategies for the future, may
be "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. All forward-looking
statements involve a number of risks and uncertainties that could cause actual results to differ materially from the estimates,
expectations, beliefs, intentions, projections and strategies reflected in or suggested by the forward-looking statements. These
risks and uncertainties include, but are not limited to, the cost of aircraft fuel; the availability of aircraft fuel; the impact
of rebalancing our hedge portfolio, recording mark-to-market adjustments or posting collateral in connection with our fuel hedge
contracts; the possible effects of accidents involving our aircraft; the restrictions that financial covenants in our financing
agreements will have on our financial and business operations; labor issues; interruptions or disruptions in service at one of
our hub or gateway airports; disruptions or security breaches of our information technology infrastructure; our dependence on
technology in our operations; the effects of weather, natural disasters and seasonality on our business; the effects of an extended
disruption in services provided by third party regional carriers; failure or inability of insurance to cover a significant liability
at Monroe’s Trainer refinery; the impact of environmental regulation on the Trainer refinery, including costs related to
renewable fuel standard regulations; our ability to retain management and key employees; competitive conditions in the airline
industry; the effects of extensive government regulation on our business; the sensitivity of the airline industry to prolonged
periods of stagnant or weak economic conditions; the effects of terrorist attacks or geopolitical conflict; and the effects of
the rapid spread of contagious illnesses. Additional information concerning risks and uncertainties that could cause
differences between actual results and forward-looking statements is contained in our Securities and Exchange Commission filings,
including our Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2014. Caution should be taken not to place undue
reliance on our forward-looking statements, which represent our views only as of July 27, 2015, and which we have no current intention
to update.
###
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