EXPERIENCE MAKES FOR A STRONGER TAILWIND

Transcription

EXPERIENCE MAKES FOR
A STRONGER TAILWIND
2013 CORPORATE RESPONSIBILITY REPORT
TABLE OF CONTENTS
EXPERIENCE MAKES FOR A STRONGER TAILWIND
Letter from Richard H. Anderson, CEO............................................................................................................................................ 3
About Delta...............................................................................................................................................................................................4
GOVERNANCE .................................................................................................................................................................... 5
ENVIRONMENT ................................................................................................................................................................ 8
COMMUNITY .....................................................................................................................................................................22
SUPPLY CHAIN ................................................................................................................................................................28
EMPLOYEES ............................................................................................................................................................................31
CUSTOMERS ....................................................................................................................................................................... 44
INVESTORS . .......................................................................................................................................................................... 54
AWARDS AND RECOGNITION .............................................................................................................59
APPENDIX
GRI 3.1 Indicators...................................................................................................................................................................................62
Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures.......................................................... 66
ABOUT THIS REPORT
This report describes Delta Air Lines, Inc.’s corporate responsibility activities and performance since the last report, the 2012 Delta Corporate Responsibility Report. Data included in
this report are from the year 2013, unless otherwise noted. Delta self-declares this report to meet application level B of the Global Reporting Initiative (GRI) G3.1 Sustainability Reporting
Guidelines. This year’s report covers Delta’s mainline operations in the United States; regional carriers and international facilities are not included in this report unless otherwise noted. For
more information about this report, please contact Helen Howes, Managing Director – Safety, Health and Environment, Delta Air Lines, Inc., 1020 Delta Boulevard, Atlanta, GA, 30354,
email: [email protected]
2013 DELTA CORPORATE RESPONSIBILITY REPORT | 2
A MESSAGE FROM RICHARD
Our core commitment at Delta is providing customers with safe, comfortable and
efficient air travel. We are a values-based business and focus all of our long-term,
strategic decisions on building and maintaining a sustainable business for our employees,
our customers and our shareowners. This commitment naturally extends to the
communities in which Delta people live and work.
Through teamwork and a commitment to common values and goals, Delta in 2013
reported a $2.7 billion profit, excluding special items; paid more than $500 million
in profit sharing for Delta people; and provided a $350 million return of capital to
our shareholders. Delta was listed once again on the S&P 500; delivered operational
performance that is unheard of in our industry with 99.7 percent completion factor and
84.5 percent on-time arrival; and made sweeping investments to our fleet and operations
as well as in select international partnerships including Virgin Atlantic, GOL and
Aeromexico to improve the Delta experience for our customers.
We also focused on continuous improvement in other areas. In 2013, Delta:
• Introduced the first of 100 Boeing 737-900ERs which are expected to burn a quarter less fuel than the aircraft
they replace
• Reduced our employee injury rate by 11 percent relative to 2012 levels
• Reduced billed water consumption by 10 percent and improved estimates of customer and employee water
consumption at our airport facilities
• Provided more than 60,000 Delta employees (as of January 2014) with better tools for identifying and
reporting suspected instances of human trafficking through the Department of Homeland Security’s Blue
Lightning training program
Among the core values outlined in Delta’s Rules of the Road is caring for our customers, our community and each other.
This dedication to servant leadership extends globally. Delta donates thousands of hours and millions of dollars as part of
our Force for Global Good to a host of philanthropic causes, including the American Red Cross, Breast Cancer Research
Foundation (BCRF), United Way and Habitat for Humanity, among others.
In addition to this report, you can find more information about our commitment to the places we serve and the people who
live there at delta.com/responsibility.
Thanks, and we look forward to seeing you on your next Delta flight.
Chief Executive Officer
Delta Air Lines, Inc.
ABOUT DELTA
WORLDWIDE SERVICE
Delta Air Lines serves nearly 165 million customers each year. With an industry-leading global network, Delta and the Delta
Connection carriers offer peak-day service to 340 destinations in 64 countries on six continents. Headquartered in Atlanta, Delta
employs nearly 80,000 employees worldwide and operates a combined fleet of nearly 1,300 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 newly formed joint venture with Virgin Atlantic. Including its worldwide alliance partners, Delta offers
customers more than 15,000 daily flights, with hubs in Amsterdam, Atlanta, Cincinnati, Detroit, Minneapolis-St. Paul, New YorkLaGuardia, New York-JFK, Paris-Charles de Gaulle, Salt Lake City and Tokyo-Narita. Delta has invested billions of dollars in airport
facilities and global products, services and technology to enhance the customer experience in the air and on the ground. Additional
information is available on delta.com, Twitter @Delta, Google.com/+Delta, Facebook.com/delta and Delta’s blog takingoff.delta.com.
100 positive things
This report features
that Delta has done regarding the environment, communities, its supply
chain, customers and investors. Look for these
highlighted
throughout the report.
100 things
01
KEY FIGURES
Nearly
165 Million Customers Served
About
80,000 Employees
Worldwide
1,300 Aircraft in Combined Operation
340 Destinations
64 Countries
245
Domestic U.S. &
Canada Destinations
47 Latin America
Destinations
34 Europe, Middle East
& Africa Destinations
14 Asia Pacific Destinations
GOVERNANCE
Strong core values and a clear set of unifying behaviors provide a solid
foundation for Delta’s culture. Our values are the basis for everything
we do. When Delta people encounter situations, they use their values
and professionalism, along with training and experience to guide their
actions and decisions. These core values make up Delta’s Rules of the
Road.
BOARD OF DIRECTORS
The Board of Directors held six regular meetings in 2013, scheduled
special meetings when required, and also met in executive session
without management. The Board believes sound corporate governance
practices provide an important framework in assisting to discharge
responsibilities. Accordingly, the Board has adopted corporate
governance principles relating to its functions, structure, and
operations. Currently, the Board is made up of 14 members, 11 of whom
are independent.
RULES OF
THE ROAD
02
Delta’s Core Values
HONESTY | Always tell the truth
INTEGRITY | Always keep your deals
RESPECT | Don’t hurt anyone
PERSEVERANCE | Try harder than all
our competitors—never give up
SUSTAINABILITY AT DELTA
At Delta, sustainability is defined as “meeting the company’s financial
goals of growth and profitability over time, through business practices
that minimize the environmental impacts of our operations and
promote the health, welfare, and productivity of the individuals and
communities we employ and serve.”
SERVANT LEADERSHIP
| Care
for our customers, our community and each other
To meet this definition of sustainability, Delta does more than simply satisfy its legal obligations. Delta’s stakeholders - investors,
customers, SkyTeam partners, employees, NGOs, governments, and communities have come to expect Delta to produce sustainable
positive financial results, invest in healthy communities, maintain a robust workforce and protect natural environments. Collectively,
these expectations drive Delta’s approach to sustainability and social responsibility.
EXECUTIVE ENVIRONMENTAL LEADERSHIP COUNCIL (EELC)
Delta’s EELC establishes, develops and supports implementation of the airline’s environmental sustainability policy and strategy. The
Council meets at least three times a year and consists of key leaders from various departments that play a role in determining Delta’s
strategy and policy related to sustainability.
In 2013, the EELC oversaw the company’s management of the following issues:
• Industry engagement on climate change policy at the
International Civil Aviation Organization (ICAO) 38th Assembly
• Compliance with European Union Emissions Trading Scheme (EU
ETS) and French CO2 reporting
• Performance against our fuel efficiency goal
• Climate change and biofuel strategy and planning
• Customer and employee engagement on sustainability
establishes, develops and supports
• Environmental partnerships, specifically Delta’s carbon offset
implementation of environmental
offering through The Nature Conservancy (TNC) partnership
sustainability policy and strategy.
• Sustainability reporting and disclosures through the Corporate
Responsibility Report, the CDP, and the Dow Jones Sustainability
Index
03
DELTA’S EXECUTIVE
ENVIRONMENTAL
LEADERSHIP COUNCIL
EELC Members are senior leaders from the following departments:
• Chief Operating Officer
• Airport Customer Service and Tech Ops
• Corporate Communications
• Corporate Real Estate
• E-Commerce
• Finance
• Fleet Strategy and Transactions
• Flight Operations
• Fuel Optimization
• Government Affairs
• Legal
• Marketing
• Safety, Health and Environment
• Safety, Security and Compliance
• Supply Chain Management
04
Delta participated in the SASB
(Sustainability Accounting Standards
Board) industry working group to provide
feedback on disclosure items that are
considered material issues to the airlines.
ENTERPRISE RISK MANAGEMENT
Delta’s Enterprise Risk Management (ERM) process is designed to provide a framework for risk management for Delta. The ERM
system helps assess significant risks that could prevent Delta from achieving its overall objectives, identify and document strategies
to mitigate these risks and monitor progress against the mitigation strategies. ERM activities include supporting management’s ERM
process, documenting risk assessments utilizing a consistent framework, identifying and evaluating risk mitigation activities and
controls, and reporting objectively on the results of risk evaluations. Delta conducts a combination of inquiry, observation, inspection,
and re-performance testing to establish whether the controls and processes are mitigating risks as designed. Summary reports are
issued to Delta’s Corporate Leadership Team for each study completed to indicate the effectiveness of controls and risk mitigation
activities for the business process in review.
ENVIRONMENT
“We’re always focused on the future at Delta and continue to promote a transparent business
model that we believe will improve our sustainability for many years to come. That includes air
traffic initiatives, green practices at our airports and other facilities, fleet renewals and a robust
recycling program both in the air and on the ground, among other initiatives. We continue to
verify our complete greenhouse gas emissions inventory verified under The Climate Registry
and have been named to Dow Jones Sustainability North American Index three years in a
row.”
-- John Laughter - senior vice president, Corporate Safety, Security and Compliance
2013 GOALS
Notices of Violations...ACHIEVED
Non-Compliance/Permit Exceedences...DID NOT MEET
STRETCH GOAL
Spills...DID NOT MEET
Achieve 1.5% fuel efficiency improvement...IN PROGRESS
Reduce greenhouse gas emissions below 2012 levels...MET WITH
USE OF CARBON OFFSETS
2014 GOALS
Achieve 1.5% fuel efficiency improvement
Reduce electricity consumption at selected Atlanta facilities by
10%
Set and achieve a water reduction goal for Atlanta TechOps
Meet Environmental Goals for Notices of Violations (2), NonCompliance/Permit Exceedences (4), Spills (69)
Reduce greenhouse gas emissions below 2013 levels
ENSURING ENVIRONMENTAL COMPLIANCE
Delta is committed to minimizing its impact on the environment by conducting operations in an environmentally sustainable manner.
As a minimum requirement, the airline works to comply with all environmental laws and regulations which govern our industry. In
the absence of government regulation, Delta follows the best practices of the aviation industry. This is accomplished through setting
environmental performance goals with the operating divisions, measuring and reporting progress to leaders in these respective
divisions on a monthly and quarterly basis, and sharing relevant information with customers and external stakeholders on an annual
basis. Another effective method to ensure compliance is the development of a robust environmental audit program that promotes
accountability and environmental awareness throughout Delta’s operations. The audit team’s findings, concerns and observations are
communicated to station and divisional leaders so that improvements can be implemented at stations and maintenance facilities.
Delta has developed several environmental management tools to improve environmental compliance and awareness. The
Environmental Programs Manual provides policies and procedures for compliance with all applicable environmental regulations.
In developing and frequently updating this manual, applicable federal, state and local environmental regulations are reviewed to
establish a consistent set of guidelines for Delta’s operations. The Environmental Management System helps all stations maintain
compliance with environmental requirements and includes the company’s environmental policy, objectives and targets, roles
and responsibilities, operating procedures, and inspection and document control requirements. Additionally, the Environmental
Management Information System (EMIS) is a computer-based system that manages environmental data, improves compliance and
support environmental programs and processes across the company. This system is configured from the corporate level down to the
station level and is available to track and report compliance task completion by corporate, operational and station leaders.
A final element in maintaining environmental compliance is the day-today management responsibilities of the environmental coordinators in
airport locations and maintenance departments, who ensure compliance
with environmental requirements associated with their operations and
Based on Delta’s fleet as
activities. Their responsibilities range from conducting daily, weekly or
of Dec. 31, 2013, 79 percent of
monthly inspections and recordkeeping, performing on-call spill response
aircraft meet Stage 4 criteria - the
and reporting, ensuring staff with assigned environmental tasks are trained,
quietest aircraft category.
acting as a liaison to airport environmental staff, overseeing contractors whose
actions may impact the environment, escorting regulatory authorities during
an inspection, coordinating and communicating environmental responsibilities
among operating divisions, and meeting regularly with station or division leadership to discuss environmental programs and make
improvements.
05
NOTICES OF VIOLATIONS/NON-COMPLIANCES
Four notices of violations (NOV) and five non-compliance incidents were received from environmental regulatory agencies in 2013.
The NOV goal (four) was achieved but the non-compliance goal (zero) was not achieved. One NOV, which resulted in a monetary
penalty of $8,500, was associated with petroleum storage tank compliance requirements at New-York LaGuardia. The second NOV,
received in Los Angeles, was associated with hazardous waste management practices and the penalty was $12,000. All four NOVs
were promptly resolved through the appropriate regulatory authority and practices have been established to address reoccurrence.
In 2013, Delta received a total of five additional notices that permit conditions had been exceeded. This is an increase of three noncompliance incidents over 2012 and several were administrative in nature or associated with permit limits.
NOTICE OF VIOLATIONS
2011
2012
2013
Notice of Violation
N/A
4
4
Non-Compliance/Permit Exceedences
N/A
3
0
Notice of Violation
9
6
4
Non-Compliance/Permit Exceedences
2
2
5
Monetary Value ($) of significant fines
$630*
$2,000
$20,500
GOALS
PERFORMANCE
* plus “annual emission fee of 1.5 times the actual emissions for 2012” for Minneapolis and Minneapolis Building J
MANAGING SPILLS
Delta sets a spill goal for each of the following divisions: Airport Customer
Service; Corporate Real Estate; Safety, Health and Environment; and Technical
Operations. Performance is tracked against these individual goals to determine
Delta’s progress in minimizing its environmental footprint. While Delta is
committed to reducing and eliminating the potential for spills, the company
saw an increase in Class I Spills this year. The airline accepts the responsibility
to not only clean up spills and respond to any impacted environmental media,
but also report to state and/or federal regulatory agencies. Delta’s lavatory,
Ground Support Equipment (GSE) and deicing operations saw 19 more spills in
2013 compared to 2012.
06
To address spills, the INCIDENT
RESPONSE TEAM will meet with
the incident station for all Class I spills
to identify the root cause, contributing
factors and corrective actions.
In response, Delta is partnering with GSE to identify and replace parts on support vehicles that have a manufactured shelf life, such
as hydraulic hoses, even if they appear to be in good condition. The Incident Response Team will meet with the incident station
for all Class I spills to identify root cause, contributing factors and corrective actions. These meetings will help to identify not only
station specific issues, but also potentially regional or systemic concerns where preemptive action can be taken to avoid similar spill
scenarios.
SPILLS
2011
2012
2013
GOALS
Spills (Class I + Class II)
55
PERFORMANCE
30
28
35
Class II
46
42
43
Total Spills
(Class I + Class II)
76
70
78
Regulatory Reportable3
16
18
17
Class I1
2
1. Class I: any spill that reaches soil and/or water and/or any spill equal to or greater than 25 gallons.
2. Class II: any spill that is equal to or more than 5 gallons, but less than 25 gallons and does not reach soil and/or water.
3. Spill that is reported to a regulatory authority under local, state or federal spill reporting guidelines.
IMPROVING AIR QUALITY
In an effort towards continuous improvement, Delta contracts with certified professional environmental auditors to review its station
compliance programs with a focus on local requirements according to all state, city, county and district regulations that impact
the airline’s operations. These third party reviews provide a multi-media inspection of records and work practices that help Delta
remain compliant. As a result of one such review, the New York-LaGuardia station recognized the need to register certain pieces of
combustion equipment with the NYC Department of Environmental Protection as part of a local environmental requirement they
were not previously aware of. Delta operations are now in full compliance with this local rule, and will continue to respond to similar
reviews in order to update compliance measures.
The following table shows a summary of criteria pollutant emissions from Atlanta, Minneapolis, Detroit, Cincinnati and Los Angeles.
These locations are included because an annual inventory is filed with the respective states, providing a breakdown of estimated
emissions. The Delta Atlanta Technical Operations Center contributes the majority of emissions within the Delta operations for these
five pollutants. The VOC emissions increase in 2013 is driven by miscellaneous material usage in Atlanta, which accounts for 90
percent of total VOC emissions. VOC emissions from miscellaneous material usage in 2012 were low compared to previous years,
thus 2013 emission levels are more in line with recent trends.
EMISSIONS (tons/year)
CO emissions
NOx emissions
PM emissions
SO2 emissions
VOC emissions
2011
63.4
131.3
13.9
14.8
208.7
ENCOURAGING ALTERNATIVE COMMUTES
Delta engages its employees on clean commute options in an effort to
improve air quality in local areas of operation. Flexible work options,
alternative commutes and on-site amenities are offered to encourage
employees to reduce vehicles miles traveled. These include:
• Teleworking: work at home for a certain number of days a month
•C
ompressed Work Week: longer work days in exchange for a day
off in the same pay period
• F lextime: variation of a normal eight-hour day in order to avoid
peak-hour traffic and improve air quality
•C
ommuter Benefits Program: allows employees to pay for eligible
commuting costs through automatic, pre-tax payroll deductions
•O
n-site amenities at World Headquarters: gym, cafeteria, dry
cleaning, walk-in clinic, Walmart, Starbucks, farmers market
during summer months
2012
57.9
122.2
12.9
14.3
183.6
2013
56.6
124.8
11.6
13.0
261.6
No-idle program
07
to improve indoor and outdoor air quality.
In partnership with The Clean Air
Campaign, a “No-Idle Program” was
implemented to improve air quality at the
Cargo facility in Atlanta. Signs posted
throughout the cargo warehouse and on
ground service equipment vehicles notify
employees and customers to turn off
their engines to avoid unnecessary idling
whenever possible.
08
Because Delta is a 24/7 operation with shift work, Delta works with
Delta won the Georgia Commute
local transportation management associations to promote alternative
Options award for “Best Overall
commutes in the most effective way for employees in many locations:
Program - Large Employer.”
• A Clean Air Campaign Task Force with representatives from
each operating division in Atlanta meets on a quarterly basis
to discuss the best way to overcome the challenges related to
promoting alternative commutes to airport employees. As a result of the task force efforts to create tailored communication
and events, Delta won the Georgia Commute Options “Best Overall Program - Large Employer.”
• Delta’s IT Green Initiatives Group supports Delta’s relationship with MetroTransit in Minneapolis by planning events for
employees to talk directly with MetroTransit about alternative commute options that would work for them. In 2013, a zip code
party was hosted to visualize options for carpooling and vanpooling with other employees who live in the same area.
• The monthly “Hubbub” newsletter sent to all employees in Salt Lake City features TravelWise options for public transport to
and from SLC airport.
MINIMIZING WASTE
Hazardous waste volumes generated by routine operations decreased in 2013 from previous years. Total non-hazardous waste
volumes (landfilled, incinerated and recycled) decreased three percent from 2012. In an effort to decrease hazardous and nonhazardous waste, waste minimization plans were developed for two of the largest stations, Atlanta and Detroit. These plans will be
implemented and evaluated in 2014, and a new plan will be drafted for an additional station.
WASTE
2011
2012
2013
609
638
591
0
0
2291
Landfilled or Incinerated
615
Recycled
850
1,045
946
1,105
827
0
21,9882
0
HAZARDOUS WASTE in tons
Total Generated
Construction Debris
NON-HAZARDOUS WASTE in tons
Construction Debris
One time construction project at LaGuardia International Airport
1
One time construction projects in Memphis and Detroit
2
DIVERTING WASTE
IN-FLIGHT RECYCLING
Launched in 2007, Delta’s In-Flight Recycling Program has since expanded to 27 domestic locations and one international location.
Between 2007 and 2013, more than 8.5 million pounds of materials have been diverted from landfills. Five Habitat for Humanity
homes have been funded by the $500,000 in rebates from plastic, aluminum and paper recycled on board. The fifth Habitat for
Humanity home funded completely by in-flight recycling rebates was constructed in Seattle, Wash. in October 2013.
Recycling volumes have remained steady since 2009, though region-specific requirements and poor tracking of recycling volumes
have posed challenges along the way. Despite this, Delta continuously seeks to expand its in-flight recycling program beyond its large
domestic stations by adding new stations and working with recycling service providers and airport authorities to receive better visibility
to volumes that Delta passengers, business partners, and employees collect for recycling.
09
2011
2012
2013
27 stations
29 stations
28 stations
RECYCLABLES
(in tons)
ALUMINIUM
IN-F
REC LIGHT
Y
PRO CLING
GRA
M
478
596
704
$118,153
$130,593
$115,642
tons
in flight rebates
tons
in flight rebates
PLASTICS
154 174 139
42
42
24
2011
2011
2012
2013
2012
2013
PAPER
CO-MINGLED
tons
in flight rebates
256
334
61
26
46
480
}
2011
2012
2013
2011
2012
2013
INTERNATIONAL ON-BOARD RECYCLING
One of the challenges of international recycling is that materials contaminated with dairy, meat, and/or produce are considered
“regulated garbage” and must be incinerated or autoclaved. Recent discussions with Atlanta Customs indicate the future possibility
of recycling aluminum cans that are not contaminated with these materials.
To address the issue of international recycling, London Heathrow International Airport, the International Air Transport Association
(IATA), and outside consultants launched a cabin waste study among several international airlines that fly into London Heathrow
regularly. The study was prompted by increased landfill disposal costs in London and the desire by the airport to seek alternatives
to landfilling international waste. The two flights chosen for this study were DL 84 and DL 10 from Atlanta to Heathrow on Oct. 23,
2013. Corporate Environment and Onboard Services led the effort by briefing flight attendants, local Catering and Cabin Service on
the collection process. Outside consultants collected cabin waste data from these flights, as well as other carrier flights involved in
the study. The data from the audit are being analyzed and next steps are being discussed.
AIRPORT PARTNERSHIPS
Delta in LaGuardia teamed up with the airport’s food and beverage operator, OTG, to divert waste where possible. Since March 2013,
2,100 gallons of waste oil has been collected and sent to be converted to biodiesel fuel, and 7,965 pounds of food waste have been
collected for recycling. Rebates received from these processes are donated to the Delta Employee and Retiree Care Fund.
Carpet from the aircraft is recycled and
burned for energy.
363
TONS
12
10 Recycling
ATLANTA EMPLOYEE
RECYCLING CENTER
have been converted to energy
from 2011 through 2013
By the end of 2014, all of Delta’s 11,000 pilots will swap
their 38-pound pilot flight bags for Microsoft Surface 2
tablets that will provide quick and easy access to flight
information, charts, weather products and navigation
utilities. The Surface 2 devices are expected to save 7.5
million sheets of paper, save $13 million a year in reduced
fuel burn and other associated costs, and prevent the
release of 12,500 tons of carbon annually.
11
allows employees without
access to curbside recycling
to bring their aluminum cans,
plastic bottles, glass, tin
and paper to be recycled at
the Headquarters. Rebates
are donated to the Delta
Employee & Retiree Care
to help individuals who
2011 Fund
suffer
from severe financial
440 tons/$22,162
hardship from unforeseen
2012 and unavoidable crisis, such
381 tons/$609
as Hurricane Sandy. The
2013 reduction in ERC recycling in
2013 is likely due to a new
256 tons/$5,754
residential curbside recycling
program launched by the City
of Atlanta at the end of 2012.
13
up cycle
used safety vests
Customer Service operations in Atlanta
donated approximately 400 used safety
vests to the weavers of re:loom.
16
Sensitive documents are shredded and
recycled by
In 2013,
IRON MOUNTAIN .
506 TONS of paper were
recycled through this program.
14
Due to sustainable
re-upholstery practices,
the seats of ground support equipment
can be reused, rather than replaced.
15
GOING GREEN WITH
COFFEE GROUNDS
In Atlanta and Minneapolis,
Delta partnered with catering vendor
Sodexo to allow employees to pick up
used coffee grounds for their gardens. This
initiative diverts an estimated
75 pounds of waste at the
Atlanta campus each week.
UPCYCLING USED SAFETY VESTS
Customer Service operations in Atlanta donates used safety vests to the weavers of re:loom, who upcycle the vests into tablet
cases, passport covers and clutches that are available for sale. A program of the Initiative for Affordable Housing, re:loom supports
homeless and low-income adults in the metro Atlanta area by training them to weave original products out of upcycled materials.
The weavers receive a stable salary and full healthcare coverage, and the organization takes donations of textiles in an effort to divert
waste.
LEATHER SEATS UPGRADED TO WITHSTAND THE HEAT
The black seats on ground support equipment in Tucson typically measure between 250-260º Fahrenheit in the extreme summer
heat. As a result, the seats would start to crack after four to five months. Employees in Tucson replaced the seats in white Marine
type leather, which are significantly cooler, clocking in between 120-160 Fahrenheit. These seats are re-upholstered as necessary
(about every two years) and no seats have been thrown away in 10 years. Due to the success of this project, seats in Phoenix are
brought down to Tucson where the seat replacement process is implemented.
ASSESSING WATER IMPACT
With the growing global concerns about water scarcity, Delta’s
operation recognizes a responsibility to conserve water wherever and
whenever possible.
Water usage is metered and billed at Atlanta and Minneapolis
Technical Operations, along with the Atlanta General Office, and
accounts for approximately 39 percent of Delta’s water usage. From
2012 to 2013, Delta decreased its total billed water usage by nearly 10
percent, or 22 million gallons.
DAILY WATER CONSUMPTION
(for employees and passengers per the U.S. Green Building Council)
6.15 gallons 7.35 gallons
0.69 gallons 0.93 gallons
Employees
Passengers
BILLED WATER CONSUMPTION
(in gallons)
Because Delta does not receive bills for water usage at airports, total
consumption is estimated. An airport-focused water estimation
calculator, which was developed based on U.S. Green Building
Council guidance, was used to estimate passenger and employee
water consumption at Delta’s U.S. airport facilities.
2011
2012
2013
274,582,800.5 225,010,975.5 203,021,010
Delta employees and passengers at U.S. airports consumed more
than 320 million gallons of water, representing approximately 61
percent of the total domestic water consumption. In total, more than
523 million gallons were consumed in 2013 across airport and owned
facilities. Further work will be done to validate this estimate.
17
From 2012 to 2013, Delta
DECREASED its total billed
WATER USAGE by nearly 10%,
or 22 MILLION GALLONS.
Note that in the 2012 Corporate Responsibility Report, an estimate
of 640 million gallons of water consumed was attributed to Delta
passengers alone. This estimate was derived using the American
Water Works Association’s guidance on daily consumption of
four gallons per day. The 2013 estimation tool estimated transient
consumption, and is a more accurate estimate of passenger
consumption at between 0.69 and 0.93 gallons per day. This change in estimating methodology had a material impact on the
estimated domestic water footprint for 2013.
18
THE INDUSTRY, DELTA AND
CLIMATE CHANGE
Delta played a substantial role in helping
drive positive outcomes from the 38th
ICAO Assembly in Montreal.
The International Civil Aviation Organization (ICAO) is a branch of
the United Nations that establishes standards and guidelines for
international air transport to ensure safe and orderly growth for the
ICAO member states. The International Air Transport Association (IATA), the largest global airline trade association in the world,
interacts with ICAO by contributing to the various ICAO technical panels and has been granted permanent observer status to ICAO. Based on input from IATA, the 38th ICAO Assembly made significant progress on the issue of climate change and the role that
market-based measures (MBMs) will play under a global climate change scheme for aviation. Before the Assembly concluded in
Montreal on October 4, 2013, representatives unanimously decided to develop a global MBM for international aviation emissions,
leaving it up to the 2016 Assembly to flesh out details and a plan to implement it in
2020.
ALIGNED with
IATA,
19
Delta’s goal is to improve annual fuel
efficiency by an average of 1.5 percent a
year between 2009 and 2020.
In June 2013, the IATA 69th Annual General Meeting overwhelmingly endorsed a
resolution on “Implementation of the Aviation Carbon-Neutral Growth (CNG2020)
Strategy.” The resolution provides governments with a set of principles on how
they can establish and integrate procedures for a single MBM as part of an overall
package of measures to achieve CNG2020. Delta played a substantial role in helping
to drive these positive outcomes.
RESPONSIBILITY AND RISKS REGARDING CLIMATE CHANGE
Delta implemented a comprehensive Climate Change Strategy in 2010, which was approved by the EELC and the CEO. The Strategy
is reviewed and revised annually, and the EELC receives updates at least twice per year on the status of progress made on actions
identified in the Climate Change Strategic Plan, which has driven the integration of climate change policy, legislative, and regulatory
risks into various business analysis and planning processes.
Delta is also participating in an Airport Cooperative Research Program (ACRP) panel on climate change risk assessment and
adaptation at airports. The panel supports the development of a tool tailored for airports and airline industry stakeholders to assess
the risks and plan for adapting to climate change. In the future, the intention is to take this tool, or subsequent iterations tailored for
airlines, and use it to conduct a targeted, comprehensive climate change risk assessment for Delta.
Delta participated in multiple events hosted by the Center for Climate and Energy Solutions (C2ES), which focused heavily on climate
change resilience in 2013. Delta participated in C2ES webinars on the following topics:
• The latest in climate science, in anticipation of the Intergovernmental Panel on Climate Change (IPCC) releasing the first
segment of its Fifth Assessment Report
• Planning for Climate Resilience, intended as a follow-up to the building climate resiliency report C2ES published in August
• Building Business Resiliency to Climate Change
Delta also participated in the quarterly C2ES Business Environmental Leadership Council meetings, as well as a policy discussion on
the Renewable Fuel Standard.
REGULATORY RISKS AND ASSOCIATED COSTS
IATA has prepared marginal abatement cost curves at the industry level, which Delta uses to help guide policy decisions and
advocate cost-effective options for emissions reductions. In addition to the cost of fuel, Delta has incorporated current CO2 emissions
costs into business decisions regarding routes to/from countries within the European Union to ensure compliance with the European
Union Emissions Trading Scheme (EU ETS) as well as future expectations of CO2 emissions costs into decisions for future aircraft
purchases. In the event that legislation or regulation is enacted in the U.S. or in the event similar legislation or regulation is enacted in
jurisdictions where Delta operates, other than the EU, it could result in significant costs to Delta.
OPPORTUNITIES FOR INNOVATION: EXPLORING BIOFUELS
Delta’s biggest driver for exploring biofuel alternatives is the reality of its carbon footprint and industry climate change goals. To
address greenhouse gas (GHG) emissions, the airline remains committed to a global sectoral approach put forth by the International
Air Transport Association (IATA). Delta supports the aviation industry’s
emissions reduction goals through IATA’s four pillars strategy, which
Led by KLM, Delta participated in the
includes technology enhancements, such as deployment of alternative
launch of the first-ever series of biofuelfuels.
20
powered intercontinental flights.
TRAINER REFINERY
In late 2012, a Delta subsidiary acquired a refinery in Trainer, Pa.
The refinery asset secures a less expensive jet fuel supply into our
top priority NYC markets. Furthermore, it potentially affords Delta
a unique opportunity among airlines to blend and refine biofuels. A
cross-functional team continues to actively screen and study potential
petroleum fuel substitutes that are in late-stage technology development
and assess any realistic opportunities for engagement.
21 biofuel
DETROIT BIOFUEL INITIATIVE
In the fall of 2012, Detroit launched a pilot project
using biodiesel (B5) in six of the deicer trucks.
Results of that pilot showed measurable cost and
emissions reductions, with no issues relating to fuel
reliability or quality concerns. In 2013, the program
was scaled up to include the full deicer fleet of 31
trucks, with an estimated CO2 emissions reduction
of 35 metric tons for the full deicing season.
JFK GREEN LANE PROGRAM
Delta joined KLM, Sky NRG, the Schiphol Group and the Port Authority
of New York and New Jersey (PANYNJ) in the launch of the first-ever
series of biofuel-powered intercontinental flights. This 26-week pilot
program, undertaken by KLM, involved weekly flights using a blend of
biofuel derived from used cooking oil or camelina with conventional jet
fuel. Between March 8 and Aug. 22, 2013, a total of 26 KLM flights were
fueled with sustainable biojet fuel; one from Schiphol airport to JFK airport and 25 from JFK airport to Schiphol airport. The estimated
greenhouse gas emissions savings relative to conventional jet fuel is between 70 percent and 80 percent for the bio-portion of the
jet fuel blend. This program successfully demonstrated the feasibility of flying regular scheduled flights on sustainable jet fuel.
FOCUSING ON CARBON EMISSIONS
Delta calculates and verifies a complete greenhouse gas (GHG) emissions inventory1 in an effort to manage all sources of carbon.
Since 2005, Delta has reduced its annual emissions (Scope 1, 2 and 3) by 7.9 million metric tons, a 17.2 percent reduction over eight
years. On an absolute basis, Delta saw a 550,000 metric ton (1.5 percent) increase of carbon emissions in 2013 compared to 2012
due to more flying. Delta is exploring the possibility of retiring a block of carbon credits against the 2013 inventory which would result
in a 0.6 percent emissions reduction compared to 2012.
TOTAL GREENHOUSE GAS EMISSIONS
2013 EMISSIONS
(in metric tons)
(in metric tons)
GROUND SUPPORT EQUIPMENT
0.3%
46,372,657
38,614,756
38,248,968
37,685,493
37,460,492
OTHER
0.2%
AIRCRAFT EMISSIONS:
REGIONAL AIRCRAFT +
DELTA PRIVATE JETS
17.2%
ELECTRICITY
0.9%
AIRCRAFT EMISSIONS:
MAINLINE
81.4%
2005
2011
2012
2013
2013
with offsets
AIRCRAFT EMISSIONS
(in metric tons)
7,391,313
7,137,858
6,787,188
6,565,279
38,158,942
30,867,313
30,359,915
31,159,188
2005
2011
2012
2013
Regional + Delta Jets
Mainline
AIRCRAFT EMISSIONS
More than 98.5 percent of Delta’s footprint is due to
emissions from mainline and regional aircraft. Both are
included in the inventory to ensure emissions reductions
for Delta are not realized merely by moving flights from
mainline to regional – all fuel consumed on behalf of Delta
is accounted for.
OTHER SOURCES
OTHER SOURCES
The other 1.5 percent of Delta’s footprint is comprised
of electricity (at owned and leased facilities), ground
support equipment, refrigerants, chemicals and
stationary combustion equipment.
TRAINER EMISSIONS
In 2013, Delta’s full inventory will also include the
emissions from Trainer, a refinery operated by a whollyowned subsidiary. Most of Trainer’s emissions as
reported under the Environmental Protection Agency’s
Mandatory Reporting Rule are available at epa.gov/
ghgreporting.
(in metric tons)
600,000
Emergency Gen/FirePumps
Refrigerants
Chemicals
Stat Combust Facilities
GSE
Electricity
0
2005
2011
2012
2013
Delta’s GHG emissions inventory follows guidance set out in The Climate Registry’s General Reporting Protocol and emissions factors from the Intergovernmental Panel on Climate Change Guidelines
1
for National Greenhouse Gas Inventories. Delta’s full inventory from 2005 onward is available on The Climate Registry’s Member Reports website.
FUEL EFFICIENCY
In addition to calculating emissions on an absolute basis, fuel efficiency is tracked as liters of fuel consumed per 100 revenue tonnekilometers. Aligned with IATA, Delta’s goal is to improve annual fuel efficiency by an average of 1.5 percent a year between 2009 and
2020. This means using an average of 1.5 percent less fuel to transport the same weight the same distance, every year from 2009
until 2020.
2009
2010
2011
2012
2013
Total Fuel Consumed (liters)
14,655,267,563
14,464,872,741
14,584,619,038
14,252,065,385
14,477,609,330
Weight transported1
33,778,915,200
34,434,525,639
34,545,872,861
34,628,843,557
34,844,652,685
43.39
42.01
42.22
41.16
41.55
3.18%
1.35%
1.7%
1.06%
1
Fuel used to transport 100
revenue tonne kilometers
(I/100RTK)
Average Annual Fuel
Efficiency Improvement since
2009 (IATA goal of 1.5%)
1
Mainline and regional flights.
During 2012, Delta was using an average of 1.7 percent less fuel to transport
100 tonnes a distance of 1 kilometer, exceeding the IATA goal of 1.5 percent.
In order to maintain a 1.5 percent average annual improvement, fuel usage
had to decrease, load factors had to increase, or a combination of both
needed to occur.
CONVERTING TO
ELECTRIC GROUND
SUPPORT EQUIPMENT
22
In partnership with the Center for Transportation
and Environment and Clean Cities-Georgia, Delta
transformed
While passenger and cargo loads transported increased by 0.62 percent
for 2013, this was not enough to offset the 1.58 percent fuel increase and
maintain a 1.5 percent annual efficiency improvement average. Delta ended
the year with an average 1.06 percent fuel efficiency improvement since
2009 and is not currently meeting the IATA goal.
11
In 2014, the delivery of the 110-seat Boeing 717-200s to replace 50-seat
jets will result in upgauging that will provide fuel savings and efficiency
improvements by operating one flight instead of two while maintaining the
same capacity currently available. In addition, Delta’s Fleet Committee and
Fuel Council will continue to address efficiency in aircraft and champion
potential fuel savings initiatives that can be implemented.
from diesel to electric-powered machines
under the Diesel Emissions Reduction Act.
The expected savings from this project total
more than 100,000 gallons of diesel fuel and
575 tons of emissions annually.
container
loaders
belt
loaders
&
24
23–29
IN AN EFFORT TO
REDUCE THE NEARLY
4 BILLION GALLONS
FUEL SAVINGS
To reduce Delta’s carbon emissions on an absolute, per revenue and per revenue
tonne kilometer basis, aggressive fuel savings initiatives are tracked in an effort to
reduce the near 4 billion gallons of jet fuel that accounts for more than 98.5 percent
of Delta’s annual carbon footprint.
of jet fuel Delta consumes a year, 20 aggressive
fuel savings initiatives were tracked in 2013.
FLIGHT PLANNING
Flight planning initiatives provided the greatest fuel savings to Delta in 2013. AttillaTM Managed Arrivals System ensures an even flow
of Delta arrivals, thus reducing hold times and saving fuel. In Detroit and Minneapolis, planning saved 1.6 million gallons of fuel. Other
initiatives, such as using child weights during fuel planning, route efficiencies, and adjusting the MD-88 and MD-90 low fuel warning
to illuminate at 2,000 pounds instead of 2,500 pounds, have led to savings of more than 5 million gallons of fuel.
TAXI
Although fuel use during taxi time is a small percentage of overall consumption, the impact is compounded when applied across all
flights, all year. In 2013, use of single-engine taxi on A319, A320, and B757 aircraft, along with taxi time savings on mainline flights,
saved more than 4 million gallons of fuel.
OPERATIONAL ADJUSTMENTS
Promoting flaps 3 landing on the A319 and A320 aircraft to reduce drag, reducing overfuels, and measuring domestic contingency
fuel have resulted in 1.3 million gallons of fuel saved.
DRAG REDUCING WINGTIP DEVICES
Delta currently has drag reducing wingtip devices on 433 of its mainline fleet. In 2013, winglets were installed on six additional
Boeing 757 and on two additional Boeing 767 aircraft, saving 1.6 million gallons of fuel.
REMOVING UNNECESSARY WEIGHT
In an effort to reduce weight carried on each flight, sliding carpet cargo loading systems were removed and overhead CRT screens
were replaced with liquid crystal displays on Boeing 757-200s. Unnecessary portable water tanks were removed from the
Boeing 767-300ER fleet, and the amount of ice boarded on overnight international flights was reduced to more accurately meet
consumption. These four initiatives saved more than 142,000 gallons of fuel.
HIGH FREQUENCY RADIO
High frequency radios allow for more efficient flight paths from JFK to eastern Caribbean destinations, reducing trip time and in turn,
fuel. The average savings per flight is 663 gallons, and a total of 30,000 gallons of fuel has been saved since this initiative began.
SOFTWARE UPDATES
Software modification on the Boeing 737s allow aircraft to retain location of original waypoints and reference those waypoints when
new routing is added. Better aircraft performance trajectories result in a reduction in fuel burn. Software modifications on Boeing 747400 and Boeing 767-300/-400 continue to reduce fuel consumption.
13,719,000
135,156
$42,117,330
TOTAL GALLONS SAVED
TOTAL C02e REDUCED
(metric tons)
TOTAL SAVINGS
THE EQUIVALENT OF…
ANNUAL CARBON
FOOTPRINT OF
EMISSIONS FROM
AMERICANS
DRIVES ACROSS THE U.S.
8,045
103,445
THE ANNUAL
EMISSIONS OF
27,031
2013 CARS
DELTA CORPORATE RESPONSIBILITY REPORT | 20
ENGAGEMENT ON CARBON EMISSIONS
Through a partnership with The Nature Conservancy, Delta offers its passengers the opportunity to offset the carbon emissions of
any flight. The average tree conserved through this Carbon Offset Program sequesters up to 7.5 metric tons of CO2 over its lifetime.
For comparison, a round-trip flight from New York to London emits about 1 metric ton of CO2 per passenger. In 2013, an updated
carbon calculator was launched at www.delta.com/co2 to allow passengers to enter their flight itineraries, view the carbon emissions
associated with each part of their trip, and offset to the project of their choice: The Rio Bravo Climate Action Project located in
northwest Belize or the newly launched Clinch Valley Conservation Forestry Program in southwestern Virginia. For the year, Delta,
Delta customers and employees offset 2,689 metric tons of carbon emissions.
The Nature Conservancy’s Rio Bravo Climate Action Project was added to
the program in 2012, followed by the Clinch Valley Conservation Forestry
Program in 2013. The Rio Bravo Climate Action Project is a partnership
between The Nature Conservancy and Programme for Belize. The 6,296
hectare project, located in northwest Belize, reduces GHG emissions through
the acquisition and protection of forest lands threatened by agricultural
conversion. The new Clinch Valley Conservation Forestry Program aims
to protect wildlife, promote clean water, and sustain local timber jobs and
economic productivity. The program protects and manages 22,000 acres of
forestlands in the rural countryside of southwestern Virginia. With up to 30
tree species per acre, the broad-leaf forests sustain one of the most unique
collections of plants and animals on Earth, supporting iconic wildlife species
like black bear as well as globally rare aquatic species. After the launch
of this program, Delta volunteers from different divisions helped remove
invasive species from the site in an effort to fully understand the role of the
offset program in promoting forest growth and biodiversity.
30
EMPLOYEE
SUSTAINABILITY
GROUPS
The IT Green Initiatives Group works with
other divisions and employees across the
business to look for opportunities to make
Delta an increasingly environmentally
conscious organization. In 2013, the
group hosted Earth Day events in both
Atlanta and Minneapolis to ask employees
to commit to trying alternative commutes,
recycling, turning off lights and composting.
COMMUNITY
“Delta flies to more than 300 destinations across six continents, which means the world truly is
our community. Whether we’re building a home with Habitat for Humanity International in Mexico,
constructing a playground with KaBOOM! in Seattle, or educating students through Junior Achievement
in New York, our company promotes employee engagement in the communities where we live and work.
Through our Force for Global Good, Delta contributes thousands of volunteer hours and millions of dollars
through corporate contributions, the Delta Air Lines Foundation and employee contributions to a host of
civic causes including the American Red Cross, United Way and the Breast Cancer Research Foundation.”
Tad Hutcheson, vice president – Community Affairs
31
Delta is proud to be an American
business which serves international
communities. In addition to many
programs in the U.S., Delta and Delta
employees support communities
around the world.
ASIA
• 20 employees participated in a Habitat for
Humanity Build in the tsunami-affected area of
Higashi-Matsushma, Japan.
EUROPE
• The IT team in the UK provides
young school children the
opportunity to work with
Delta through traineeship
programs.
• Delta sponsored the
American Women’s Club
of Amsterdam benefit,
raising €18,000 for the
Blijfgroep’s Oranjehuis, to
help end gender-based violence.
• Airport employees in Singapore hosted “Mr. and
Ms. Pinktober” in an effort to raise money for
the Breast Cancer Research Foundation.
• Books, children’s clothing and stationary were
donated to a local orphanage in Thailand.
• Winter wear, thermal jackets and blankets were
collected and donated to Syria through Mercy
Relief.
• Manila In-Flight Services raised $4,111 for
Habitat for Humanity to support projects to help
rebuild homes in Tacloban and other areas hit
by Typhoon Haiyan.
LATIN/SOUTH AMERICA
• Delta and GOL Linhas Aéreas
Inteligentes partnered with the
American Society of Sao Paulo
to provide orphans with a
Christmas-themed celebration.
• The 4th annual Christmas Party
was hosted for children at
Sagrada Familia Orphanage in
Lima. Funds are currently being
raised to install a new water
filtration system in partnership
with Leave A Trace Foundation
in Lima, Peru.
• The Children of Huestros
Pequenos Hermanos orphanage
in Guatemala and Haiti received
7,400 BusinessElite duvets and
20,000 toothbrushes, socks and
sleeping eye masks.
AFRICA
• Employees have donated infant medication and
more than $20,000 to a local Catholic
orphanage in Dakar, Senegal.
• Airport Customer Service in Johannesburg,
South Africa recycles all paper and delivers to a
non-profit local charity organization.
• BusinessElite duvets are donated to orphanages
in Johannesburg and Cape Town before the
winter season in South Africa.
• Travel and support are awarded to the winner of
the local Ghana National Spelling Bee in Accra
for participation in the Scripps Spelling Bee in
the U.S.
• Delta supports the Liberian Market Women
Initiative in Monrovia in an effort to empower
women in business to help see a way out of
poverty and provide education for their
children.
COMMUNITY PARTNERSHIPS: DELTA’S
FORCE FOR GLOBAL GOOD
Delta and its employees have always demonstrated a civic obligation to give
back to the communities where they live and work. As part of its Force for
Global Good, Delta people contribute their time, energy and millions of dollars
to help make the world a better place in which to live.
SUPPORTING GLOBAL DIVERSITY
Delta proudly embraces diverse people, thinking and styles. On a global
scale, Delta maintains a culture of inclusion and employees represent many
ethnicities, languages, religions, cultures, races and ages. Delta believes
that these differences among employees help to strengthen the airline and
underscore global diversity as a core Delta value.
In line with this belief, Delta is proud to provide corporate support to
organizations such as GLAAD, the National Center for Civil and Human Rights,
100 Black Men of America, the Japanese American Association, the Japan
Society, the Latin American Association and the National Association of
Chinese Americans.
In 2013, Delta sponsored annual Pride festivals in Atlanta, Los Angeles,
Minneapolis/St. Paul, New York and Seattle to celebrate the LGBT community.
EXPANDING GLOBAL HEALTH
AND WELLNESS
Expanding global health and wellness means addressing overall well-being at
its core. Each year, Delta employees and customers raise millions of dollars
for organizations such as the Foundation for AIDS Research (amfAR), the
Breast Cancer Research Foundation, CARE, Children’s Miracle Network and
Covenant House. These organizations and others supported by Delta work to
fight cancer and other diseases, reduce homelessness and poverty and find
solutions to other pressing social issues.
In 2013, Delta employees and customers raised more than $1 million both for
the American Cancer Society and the Breast Cancer Research Foundation.
AMERICAN CANCER SOCIETY
In May, as part of the Delta Day of Hope, in conjunction with the American
Cancer Society, thousands of airport and other Delta employees participated
in relay events. At more than 70 airports around the globe, these employees
raised more than $500,000 to help end cancer. The American Cancer Society
presented its 2013 Pinnacle Award to Delta in recognition of its efforts to
educate, promote awareness of cancer and raise funds that help save lives.
FIVE CORE
PILLARS TO
GLOBAL GOOD
32
These are the guiding principles for Delta’s
community involvement its Delta’s Force for Global
Good:
Supporting Global Diversity
Expanding Global Health and Wellness
Promoting Arts and Culture
Advancing Education
Improving the Environment
33
Gail Grimmett, senior vice presidentNew York, participated in Covenant
House’s Executive Sleep Out, a
unique charity fundraiser where 180 executives
spent one night on the streets with homeless
children to help raise awareness and funds to
support homeless youth.
With just a sleeping bag and a piece of cardboard
to serve as a cushion, Gail spent the night on the
sidewalk near the entrance to the Lincoln Tunnel by
the Port Authority Bus Terminal.
“What struck me most is how inspiring these kids
are,” Gail said. “The youth that use Covenant House
to better their lives are courageous.”
Together, the executives raised $1.3 million for
Covenant House, a nonprofit organization that
provides food, shelter and immediate crisis care
to homeless and runaway youth throughout the
U.S. and Canada. Delta is a committed partner and
supporter of Covenant House.
2
UNITED WAY
Delta is a corporate leader of sustainable change in education, income, health
and reducing homelessness through its partnership with the United Way.
Delta employees continued their support for the United Way in 2013, giving
more than $1.8 million to help those less fortunate in communities served. In
2013, Steve Sear, senior vice president of Global Sales, served on the Board of
Directors for the United Way of Greater Atlanta and encouraged employees
to contribute through Delta’s payroll deduction program to help achieve its
financial goal.
GLOBAL
HEALTH
he 2013 Jet Drag competition at Atlanta
T
TOC raised $133,384 for the American Cancer
Society. A total of 39 teams of 20 people each
competed to see how far and fast they could
pull a full-size jet.
AMERICAN RED CROSS
Delta and the American Red Cross are continuing a vital partnership that has
spanned more than 70 years. Supporting one of its most critical roles, Delta
was the top blood donor in the Southeast in 2013 and ranked 10th nationally
for the Red Cross. Last year, Delta employees donated more than 4,600 pints
of blood. Delta also increased its proactive participation as a National Disaster
Responder for the international aid provider.
HABITAT FOR HUMANITY INTERNATIONAL
Acknowledging the need for safe, decent and affordable shelter around
the globe, Delta is proud of its ongoing support of Habitat for Humanity
International. Delta employees have helped to build more than 100 homes
through the partnership with Habitat. In 2013, more than 2,000 employees
took part in Delta-sponsored Habitat build projects, building and improving
homes for 12 deserving families throughout the United States. New houses
were built in Atlanta, Detroit and Minneapolis-St. Paul, and existing structures
in Los Angeles, New York City and Seattle were rehabilitated to current
building standards.
In March 2013, a team of more than 50 Delta employees, retirees and
customers traveled to Puebla, Mexico, to participate in the 9th Annual
International Habitat for Humanity Global Build, where they constructed six
34
elta employees raised more than
D
$500,000 for the American Cancer
Society during the Delta Day of Hope
relay events.
elta was the top blood donor in the
D
Southeast in 2013 and highly- ranked
nationally for the Red Cross.
35
36
37
I n 2013, more than 2,000 employees
worked with Habitat for Humanity to
build and improve homes for 12 families
throughout the U.S.
homes for families in the community. The team collaborated with employee
volunteers from Delta’s SkyTeam partner, Aeromexico.
PROMOTING ARTS AND CULTURE
Delta is an active partner in supporting community musical and fine arts
organizations, museums and other institutions around the country that inform,
enlighten and inspire people to better themselves and their world.
Included in Delta’s ongoing 2013 classical music partnerships were the
Atlanta and Seattle Symphony Orchestras. With assistance from Delta, both
of these organizations will be traveling to New York City to perform at the
renowned and historic Carnegie Hall in 2014. Other historic performing arts
venues supported by Delta include the Fox Theatres in Atlanta and Detroit, the
Woodruff Arts Center in Atlanta and the Guthrie Theater in Minneapolis.
As the Official Airline of Madison Square Garden, Delta has branded space at
many iconic sports and entertainment venues in the country, including New
York City’s Radio City Music Hall, The Theater at Madison Square Garden and
the Beacon Theatre, as well as The Chicago Theatre and the Wang Theatre in
Boston.
Important visual arts partnerships in 2013 included Atlanta’s High Museum
of Art, the Seattle Art Museum, the Whitney Museum in New York City and
many others.
Delta continues its long-running support for the National Academy of
Recording Arts & Sciences (NARAS), which produces the annual GRAMMY
and Latin GRAMMY awards presentations. With assistance from Delta,
NARAS also sponsors MusiCares, a philanthropic organization that provides
financial, medical and personal assistance for musicians in times of need.
38
DELTA EMPLOYEES
SALUTE THE
U.S. MILITARY
Delta and its employees proudly support the men
and women who serve in the U.S. armed forces.
Contributions and volunteer efforts by employees
help support the USO, airport military lounges,
including the Freedom Center in Detroit, the Marine
Toys for Tots campaign and the Fisher House
Foundation. In the past year, more than $250,000,
thousands of toys and bicycles and countless
volunteer hours were donated to the Marine Toys
for Tots campaign. For many years, Delta, our
employees and customers have donated SkyMiles
and funds to the Fisher House Foundation, which
provides a network of homes at major military
and Veteran’s Administration medical centers
where military and veterans’ families can stay at
no cost while a loved one is receiving treatment.
In 2013, Delta donated $200,000 to the Fisher
House Foundation, which in part will support the
construction of a second Fisher House facility at
Joint Base Lewis-McChord, near Seattle.
Through Delta’s growing partnership
with community food banks
throughout the U.S., Delta employees
39
have helped to provide hot meals to thousands
of hungry people. In 2013, Delta was recognized
by the Food Bank for New York City as its
2013 DELTA of
CORPORATE
RESPONSIBILITY REPORT
Corporate Partner
the Year.
| 26
9
40
ADVANCING EDUCATION
Delta recognizes the essential role of education in improving the lives
and life prospects of young people across the U.S. Delta employees help
teach students financial literacy, entrepreneurship, business readiness and
economics through national partnership with Junior Achievement. In New York
City, high school students spent a day observing Delta employees in a variety
of positions at LaGuardia and JFK airports to learn what it takes to succeed in
the business world. Additionally, in Atlanta, Delta employees volunteered to
teach financial literacy to middle school students at the Junior Achievement
Discovery Center.
Whether learning to swim or attending after-school tutoring sessions,
thousands of young people have also benefited from Delta’s partnership with
the YMCA in the communities Delta serves. Delta played a leading role in the
capital campaign of the YMCA of the Rockaways in New York following the
destruction caused by Hurricane Sandy. In addition, Delta helped to restore a
playground at the Ken-Ton YMCA in Buffalo, New York, for kids to have a safe
place to play.
Delta is also the proud sponsor of the Joseph E. Lowery scholarships affiliated
with Morehouse and Spelman Colleges and Clark Atlanta University in Atlanta,
and nationally continues its support for the United Negro College Fund. Delta
also supports the Morehouse School of Medicine.
THE GIFT
OF PLAY
This past year in Auburn, Wash., a suburb of
Seattle, more than 150 Delta employees teamed
up with 100 community leaders and built a new
playground in a single day with new partner,
KaBOOM!, to provide deserving kids a safe place
to play in their neighborhood. In just six hours,
Delta employees and the rest of the volunteer team
assembled and painted the new recreational area
that features swings, slides, a see-saw, bridge and
other equipment. The team also constructed picnic
tables, park benches and arbors, poured concrete,
installed landscaping and shoveled a mountain of
mulch to complete the playground. The project
marked the first partnership between Delta and
the nonprofit organization, which has already
built more than 2,300 playgrounds and renovated
2,000 others throughout North America since
its inception in 1996. KaBOOM! also encourages
all playground builders to recycle the packaging
from the building materials they use during these
projects.
DELTA EMPLOYEES
GIVE SMILES
41
Through Delta’s participation in the Champions
program of the Children’s Miracle Network (CMN)
Hospitals, Delta employees help bring smiles to
children who are undergoing medical treatment
and their families. Last October, more than 50
children and their families traveled on a Deltachartered plane to Washington, D.C. where they
met with President Obama as part of the CMN
Champions Week. The trip capped off with the
CMN Hospitals’ annual Children’s Miracle Awards
event, honoring individuals who have made
significant contributions in the lives of children.
Delta’s year-round commitment to CMN Hospitals
involves hospital fundraising and public awareness,
both in flight and on the ground, through employee
volunteerism and underwriting air travel for CMN
Hospitals and its beneficiaries.
SUPPLY CHAIN
“Delta is committed to including diverse businesses in our supply chain, and we actively seek
partners whose creativity, innovation and flexible solutions help us to deliver world-class
products and services that are relevant to our global customer base. As a company, we want
our social responsibility to extend beyond our business by addressing environmental, social
and governance issues with those we choose to do business with.”
-- Chris Collette, senior vice president – Supply Chain Management
2013 GOALS
Achieve set targets in percentage spend through MBE, WBE and
Continue to support all NMSDC and WBENC local and regional
organizations and efforts
SBE…ACHIEVED
2014 GOALS
Achieve set targets in percentage spend through MBE, WBE and
SBE
Focus on further maturation of 2nd tier supplier diversity
reporting, and 2nd tier goal of increasing MWBE by 10% overall
Focus on ethics and compliance for SCM staff, suppliers and
entire corporation
DOING BUSINESS WITH DELTA
Delta’s Supply Chain Management (SCM) organization is composed of
multiple units that partner with business divisions to formulate business
and sourcing strategies and deliver sustainable results to the company. This
ensures a continuous supply of cost-competitive, quality goods and services
to meet the company’s business needs.
DRIVING SUSTAINABILITY IN THE PROCUREMENT PROCESS
Delta has adopted a strategic sourcing process that defines how to manage
and engage suppliers to ensure that they practice responsible and sustainable
business. Suppliers are provided a summary of expectations and requirements
through Doing Business With Delta. Sourcing professionals are required to
include environmental, social and governance (ESG) factors in the selection
process for all contracts with significant spend. In 2013, more than 140
business reviews were held with Delta suppliers who were asked to provide
a report summarizing their corporate sustainability practices through the
Supplier Performance Management (SPM) program. The SPM scorecards
measure supplier performance, including ESG performance.
In 2013, Delta SCM received a Dow Jones Sustainability Index score of 87
-- the highest of any airline. Delta SCM attributes its high score to its internal
processes, which include the use of ESG factors for supplier selection and
supplier performance measurement.
42
In 2013, Delta SCM
received a Dow Jones
Sustainability Index score of
87 — the highest of any airline.
43
The Supply Chain Management and
supplier diversity team members met with
small, minority, and women-owned firms
at national and regional supplier diversity
tradeshows and conferences in 2013 to help
Delta identify and do business with leading
suppliers from around the world.
44
In 2013, Delta launched a Supplier
Diversity Advisory Stakeholder
Council made up of 12 external community
leaders from across the country.
COMMITMENT TO SUPPLIER DIVERSITY
Delta recognizes the importance of small, minority, and women-owned
businesses (MWBEs) to the overall strength of the U.S. economy and, ultimately, to Delta stakeholders. To maximize returns to
customers, shareholders, employees and local communities in which the airline operates, every effort is made to build relationships
and utilize the products and services of qualified MWBEs. As a result of this commitment, Delta exceeded its 2013 minority
performance goal with a spend of $286 million, and its woman-owned business performance goal with a spend of $395 million.
In 2013, Delta launched a Supplier Diversity Advisory Stakeholder Council, made up of 12 external community leaders from across
the country. The Council offers constructive input, advice and best practice recommendations to support continued efforts in
sustainability and achieving a diverse supply base.
The Supply Chain Management and supplier diversity team members met with small, minority, and women-owned firms at national
and regional supplier diversity tradeshows and conferences in 2013 to help Delta identify and do business with leading suppliers from
around the world.
REWARDING SUPPLIER DIVERSITY
At Delta’s 14th annual Supplier Diversity ‘Star Awards’ luncheon, small,
minority and women-owned supplier partners are recognized for exceptional
cost savings, quality and reliability, innovation, outreach and community
involvement. Keynote speaker Magic Johnson, CEO of Magic Johnson
Enterprises, shared his business experience. The awards also honor Delta’s
internal advocates of supplier diversity, who are instrumental in supporting
Delta’s business goals and values.
2013 RECIPIENTS
Xtra Aerospace
2013 Minority-Owned Business of the Year
Magno International
2013 New Minority-Owned Business
NogginLabs Inc
2013 Women-Owned Business of the Year
Flightstar
Small Business of the Year
Delta Advocate of the Year
Lani Gustafson, Marketing & In-Flight Services
Delta Supply Chain Management Team of the Year
Corporate Travel
Delta Supply Chain Management leaders with Traci Knudson, CEO of
NogginLabs Inc.
READY,
SET, JET
45
NogginLabs Inc. won the Women-Owned Business
category for the year. Their team built Ready, Set,
Jet!, a game-like training program for Reservation
Sales agents to help improve global awareness and
to assist with customer service and sales.
“The Delta team came to the table with some
really great ideas to share with us, and so it was a
nice sort of collaboration to come up with the best
way forward for the project” – Quinn Goodwillie,
Senior Account Representative at NogginLabs Inc.
Suppliers appreciated Delta’s show of recognition
and support through these awards.
“Everyone works really hard and it’s very unique to
have your clients take time off and celebrate what
we’ve done together,’’ said Traci Knudson, CEO of
NogginLabs Inc.
Left: Magic Johnson, keynote speaker at Star Awards
“I can’t stress enough to you, that
when you get that deal, when you
get that contract, it’s not only for
you, it’s for those who are coming
after you.”
— Magic Johnson
EMPLOYEES
“Our employees are stakeholders, not spectators. The best investment we make is in our
people, who in turn, invest every day in our customers and reward our shareholders. Our
greatest strength for long-term sustainability lies in our culture and values.”
-- Mike Campbell, executive vice president – Human Resources and Labor Relations
2013 GOALS
Pay profit sharing at or above target…ACHIEVED
Earn 21 or more Shared Reward payments…ACHIEVED
Continue building a great place to work and achieve a 5 percent
overall improvement on the 2013 Employee Survey…ACHIEVED
Pursue two additional VPP sites…ACHIEVED
Submit application to OSHA for two sites…ACHIEVED
Continue to focus on reducing serious injuries from driving on
the ramp through increased observations; provide third party to
conduct observations and several locations…ACHIEVED
Provide a safe work environment for employees…ACHIEVED
2014 GOALS
Pay profit sharing at or above target
Earn 21 or more Shared Reward payments
Invest $1.5 billion in retirement plans (pension and 401K)
Provide a safe work environment for employees
EMPLOYEE SAFETY
Delta’s 2013 Flight Plan solidifies Delta’s commitment to providing a safe
work environment for its employees. Delta’s commitment to safety is further
expressed by the Corporate Leadership Team’s annual Safety and Security
Policy letter, which reiterates that every employee has specific responsibilities
to comply with existing safety and health policies, procedures and regulations.
These responsibilities include, but are not limited to:
• Following all safety, security and environmental health policies and
procedures
• Reporting all hazardous conditions or unsafe equipment
• Reporting any injuries, illnesses, ground damages or near misses
• Using required safety equipment and protective clothing
• Refraining from the use of any equipment without proper instructions
46
Installing, enforcing and observing
compliance with the OSHA seatbelt
agreement resulted in a 25 percent
reduction in serious injuries from
driving on the ramp.
OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION (OSHA)
Delta’s OSHA recordable occupational injury/illness rate for 2013 saw an 11 percent improvement compared to 2012. Delta’s safety
record continues to be significantly stronger than the industry average based on 2013 Airlines for America benchmarking data and
based on a comparison with the most recent 2012 Bureau of Labor Statistics (BLS) numbers. Delta’s OSHA rate is 57 percent better
than the BLS industry average, and the Days Away Restricted Transferred (DART) rate is 55 percent better than the industry average.
There were no work-related fatalities during 2013.
Delta executed and met the terms of the seatbelt agreement with OSHA early in 2013. Interim goals were established for
installation of seatbelts, enforcing usage, and third party observations began in July 2013. These actions contributed to a decrease of
approximately 25 percent in serious injuries from driving on the ramp.
OSHA RECORDABLE INJURY & ILLNESS RATE
7.0
8.8
7.9
4.52
OSHA DART RATE
3.82
8.0
3.40
Bureau of Labor Statistics Rate
(most recent industry average)
3.62
6.1
3.11
6.1
Bureau of Labor Statistics DART Rate
(most recent industry average)
2.72
Delta’s OSHA Recordable Rate
2011
2012
2013
2011
2012
Delta’s OSHA DART Rate
2013
47
Delta was the first airline in OSHA’s
Voluntary Protection Programs (VPP) and
remains as one of only five companies in
their corporate VPP program.
SAFETY PROGRAMS
Delta’s safety strategy includes the utilization of site-specific Safety
Business Plans, which are based on compliance with key elements of
OSHA’s Voluntary Protection Programs (VPP). To validate compliance,
Delta conducts annual Safety and Health Gap Assessments in strategic
locations. These assessments are safety learning opportunities and
include an onsite visit, a review of required documentation and employee
interviews.
In 2013, Safety Gap Assessments were conducted for six Delta locations.
These assessments involved an entire worksite inspection for safety
hazards, compliance to regulatory requirements, safety program reviews
and interviews with employees regarding the local safety culture. Findings
were risk-rated as high, medium or low based on severity and likelihood
for injury. Follow-ups were completed to ensure that corrective actions
were taken.
VPP
Additionally, a newly established Ergonomics Team made up of trained
personnel conducts ergonomic assessments of defined work areas. To
assist work groups with proper equipment selection, the Ergonomics
Team has also developed an approved ergonomics equipment catalog,
available for review by all employees. The Personal Protective Equipment
(PPE) Committee reviews and tests new PPE products to ensure that
employees have the best products providing the highest amount of
protection. Through these programs and many others, Delta strives to
ensure that all employees enjoy a safe working environment.
48
STAR WORK SITE IN
SAVANNAH, GA
Members of the Savannah, GA Airport Customer
Service and Technical Operations team
celebrated their acceptance into VPP in 2013
PREVENTING SLIP AND FALL INJURIES
In response to an increase in slip and fall injuries during winter weather events, Corporate Safety initiated an analysis of anti-slip
footwear products. A cross divisional team was designated to identify candidate products based on the potential for these products
to aid in preventing slip and fall incidents and potential for damage to Delta equipment and facilities caused by usage of anti-slip
footwear. After field testing, Delta’s Corporate PPE Committee approved two anti-slip footwear products. Since implementation,
more than 12 Delta facilities prone to winter weather have instituted usage of anti-slip footwear.
In 2014, a cross divisional campaign will be initiated to further
communicate product availability and effectiveness. Delta will
continue to work with the manufacturer to enhance existing
products, making them more suited to the operation. The usage
versus the rate of injuries will be monitored to determine viability.
8.8
7.9
BLS Industry Average
4.52
OSHA’S VOLUNTARY PROTECTION PROGRAMS
Delta was the first airline in OSHA’s Voluntary Protection Programs
(VPP) and remains one of only five U.S. companies in their
Corporate VPP program. VPP provides Delta the unique opportunity
to improve employee safety and health through cooperation among
8
3.82
3.40
DL Corporate Rate
2.87
2.46
2011
2012
1.93
DL VPP Rate
2013
employees, management and government. Through 2013, Delta has 15 facilities in OSHA’s Voluntary Protection
Programs (VPP):
• These VPP sites represent 13.2 percent of our U.S. facilities and 8.7 percent of all U.S. personnel (6,714 employees).
• This year, the total OSHA recordable rate for these facilities was 1.93 injuries per 100 employees per year and the DART rate
was 0.87.
• The OSHA recordable rate was 45.6 percent better at VPP sites than non-VPP sites at Delta.
• Additionally, the VPP OSHA recordable rate was 75.8 percent better than the industry average.
In 2013, one facility participated in a VPP recertification and two new sites had their initial onsite reviews. Denver Technical
Operations received official approval, while the other is pending notification regarding official status. Savannah Airport Customer
Service and Savannah Technical Operations underwent onsite reviews in 2012 and received official approval in 2013 for participation
as a VPP Star site. Two facilities withdrew from the program, while three other facilities submitted applications for participation in
VPP in 2013: Memphis TechOps, Minneapolis Reservations and Albany Airport Customer Service. In 2014, Delta plans to obtain
official VPP approval for two new sites and obtain VPP recertification of Star status for two facilities.
SAFETY TRAINING
In addition to operational and basic safety training, Delta’s Corporate Safety team
facilitates an annual Safety Leadership Workshop that is open to all safety coordinators,
safety representatives, VPP coordinators, facility managers, supervisors and leaders
from the various divisions. In 2013, more than 450 employees attended the event, which
included Delta’s CEO Richard Anderson and Andy Zarras, vice president of Airport
Customer Service – Minneapolis as guest speakers. Attendees could also choose from
a variety of safety-related breakout sessions throughout the day to enhance the learning
experience.
49
Narita Airport Customer
Service, second-place
winners of the
annual Safety Video
Contest, donated their winnings to
typhoon victims in the Philippines.
The winners of the annual Safety Video Contest were also announced at this workshop. Entries were submitted by teams in Airport
Customer Service, Delta Cargo, In-Flight Service, Reservation Sales and Delta TechOps. Employees were instructed to develop a
video using a key message or slogan, and to use humor and creativity to emphasize ways for Delta people to protect themselves,
friends and family at work or home. The Atlanta Airport Customer Service team won first place for their entry, “SOS - Spirit of Safety,”
a unique ‘spirit’-themed entry. Second place went to Narita Airport Customer Service, with “Stay Safe,” a video that tied in safety at
work and at home. The team chose to donate their $500 winnings to typhoon victims in the Philippines.
DEPARTMENTAL SAFETY REPRESENTATIVES
Delta has a number of designated safety representatives available in each department, and each location holds monthly safety
meetings:
DEPARTMENTAL SAFETY REPRESENTATIVES
AIRPORT
CUSTOMER SERVICE
CARGO
Divisional…5
Regional…19
Divisional…2
Regional…45
FLIGHT
OPERATIONS
Divisional…49
IN-FLIGHT
SERVICE
Divisional…6
Location…15
System…5
RESERVATIONS
Divisional…3
Location…15
System…187
TECHNICAL
OPERATIONS
Divisional…14
Line Safety
Domestic…123
International…22
Shops…160
CORPORATE
Corporate Safety,
Security and
Compliance…89
Flight Safety…11
TOTAL SAFETY REPRESENTATIVES: 660
ASSESSING WORKPLACES THROUGH INDUSTRIAL HYGIENE
To protect employees from long-term health problems, Delta’s industrial hygiene program identifies and addresses potential
workplace hazards. Air sampling, indoor air quality surveys, noise monitoring, drinking water testing, chemical hazard assessments,
industrial hygiene compliance reviews and health hazard awareness training are used to minimize workplace risks. In all cases,
Delta goes beyond the minimum regulatory requirements, enforcing standards
set by the American Conference of Governmental Industrial Hygienists;
STUTTGART STATION
the American Society of Heating, Refrigerating, and Air-Conditioning; the
WINS GRAND SLAM
American National Standards Institute; and the International Organization for
AWARD
Standardization.
50
REWARDING EMPLOYEES WHO
MAKE SAFETY A PRIORITY
SAVING THE DAY ON BOARD A FLIGHT
On Jan. 10, 2013, Memphis-based flight attendant Marsha Cowling was
serving lunch when a passenger yelled, “My wife is choking.” After verifying
the situation, Marsha calmly and professionally took control. She administered
the Heimlich maneuver and dislodged the item. Her quick thinking and
conscientious actions helped to save this passenger’s life. She was given a
‘Saved the Day’ award from Corporate Safety for her actions.
On April 5, 2013, Carol Quinlan Hall, a Cincinnati Reservations work-at-home
agent, was able to help an 87-year-old passenger on her flight who was having
severe chest pains. As a retired nurse, Carol was able to assist an on-board
physician with CPR and used the AED. They provided two shocks and then
stayed with the passenger through the rest of the flight. After the flight, the
paramedics commended her efforts and said his life had been saved.
Delta rewards stations for operational safety
excellence in their regional. Stuttgart’s airport team
earned the Grand Slam award from Corporate Safety
for their 1st quarter 2013 performance, competing
against other stations in the Atlantic Region.
The Grand Slam award is Delta’s highest recognition
for operational safety excellence in the Atlantic
region and is awarded to the station that records
-m
ost improved global injury rate
- z ero aircraft ground damages in specified
categories
- zero environmental spills
- z ero high risk or unresolved safety related quality
control audit findings
- t he highest number of near miss observation
reports and one of the top five in on time D0
performance rates for the quarter
THE FIGHT AGAINST HUMAN
TRAFFICKING
In the U.S., human trafficking is a $9.5 billion industry according to the United
Nations. The U.S. Department of Justice estimates that 17,500 people are
trafficked into the U.S. each year. A total of 300,000 children in the U.S. are at
risk of being trafficked sexually right now.
In 2011, Delta became the first U.S. carrier to sign the End Child Prostitution,
Pornography and Trafficking International Code of Conduct for Tourism (ECPAT).
Additionally, the airline was one of twelve founding companies of the Global
Business Coalition against Human Trafficking in 2012.
In 2013, Delta continued its commitment to raise awareness about human
trafficking by implementing training for frontline employee groups. Delta
adopted the Department of Homeland Security’s Blue Lightning Initiative
The CVG RES management team presented Carol with Corporate Safety’s
Saved the Day award
Delta’s ground automated electronic defibrillator
(AED) program added a computer-based CPR &
AED training course, which is accessible
to all employees worldwide.
51
training program that provides airline employees with tools to identify and report
suspected instances of human trafficking. More than 60,000 Delta people have
taken the training as of January 2014.
More than 60,000 frontline
employees have taken Delta’s
course that provides employees
with the tools to identify and report
suspected instances of human
trafficking.
A portal dedicated to human trafficking awareness was published to Delta’s
internal communications system where employees can read about activities
related to Delta’s commitment to the ECPAT Code and partnerships with gBCAT
and Transportation Leaders Against Human Trafficking (TLAHT). Furthermore, a
statement regarding Delta’s commitment to the ECPAT Code has been added to
supplier contracts, and the company’s human rights abuse policy is integrated as appropriate in business processes.
52
On June 5, 2013 Delta CEO Richard Anderson joined U.S. Department of Transportation Secretary Ray LaHood at a press conference
in Washington, DC to announce Delta’s partnership with the DOT and Delta’s support of the Blue Lightning Initiative. Richard told
reporters and others in attendance that Delta knew it had a duty to work with the CBP and DOT on the Blue Lightning Initiative
project as soon as it was introduced. “This isn’t our duty as an airline,” Richard told attendees. “It is our duty as human beings to fight
this problem.”
2
VIEW OF DELTA EMPLOYEES
FEMALE AND ETHNIC MINORITY1 EMPLOYEES
62.40%
Number of female and
ethnic minority employees
of total employees in 2013
EMPLOYEES BY REGION
EUROPE, MIDDLE EAST
AND AFRICA
CANADA
.4%
287
UNITED STATES
LATIN AMERICA
AND CARIBBEAN
.5%
421
ASIA-PACIFIC
1%
95.4%
2.7%
792
74,033
2,112
OPERATIONAL DIVISIONS
AIRPORT
CUSTOMER SERVICE
CARGO
FLIGHT
OPERATIONS
IN-FLIGHT
SERVICE
RESERVATIONS
31.9%
2.3%
14.5%
23.3%
of total employees
in 2013
of total employees
in 2013
of total employees
in 2013
of total employees
in 2013
11,236
18,097
24,733
1
1,756
TECHNICAL
OPERATIONS
CORPORATE
6.4%
10%
11.7%
of total employees
in 2013
of total employees
in 2013
of total employees
in 2013
4,979
7,727
9,117
Ethnic minority = non-white
ENGAGING EMPLOYEES
ANNUAL EMPLOYEE SURVEY
Delta promotes a culture of open, honest and direct communication. In 2013, employees were provided an opportunity to participate
in an employee engagement survey to assess employee attitudes and perceptions of the current work environment, leadership,
employee engagement and specific strategic initiatives. More than 48 percent of eligible employees completed the survey - a 15
percent increase over 2012. Additionally, 82 percent of employees indicated Delta is a great place to work, meeting the Flight Plan
goal of increasing 5 percent over 2012 results. The annual survey is administered in the first quarter. Throughout the rest of the year,
divisional leaders work with employees to create actions plans based on the results of the survey.
EMPLOYEE INVOLVEMENT GROUPS
Across the company, employees have the opportunity to get involved.
Divisional groups including In-Flight Service’s Employee Involvement Group
(EIG), the TechOps’ EIG, Reservation Sales’ ResLINC and the Airport Customer
Service and Cargo Frontline Involvement Team (FIT), promote employee
engagement and serve as a liaison between frontline employees and leadership.
Membership in these groups provides an experience the gives employees the
opportunity to increase their knowledge and exposure to the complexities that
drive decisions affecting Delta’s work environment. Group members partner
with divisional leaders to ensure employee issues and concerns are identified
and addressed, and create and support continuous improvement that improves
the work environment and customer experience.
Airport Customer Service’s FIT allows frontline employees to get involved in
the implementation of divisional initiatives and employee-driven suggestions.
The group’s mission is to partner with leadership in support of the company’s
Flight Plan, while maintaining an inclusive culture. Airport Customer Service’s
FIT is responsible for resolving problems with creative solutions, and keeping
employees informed while assisting them with their recommendations or
feedback.
DELTA BOARD
COUNCIL
53
Through the Delta Board Council, employees have
a more direct, effective voice in the board room
and with senior management. While they relay
employee concerns to senior leaders, the Council
also communicates with the employees about
new business developments and the rationale for
particular company decisions or policy changes.
54
INVOLVEMENT
Delta employee groups help resolve employee
issues, keep employees informed, and assist with
recommendations and feedback.
In 2013, Airport Customer Service’s FIT and In-Flight Service’s EIG collaborated
to address issues regarding carry-on baggage compliance, unaccompanied
minors, customers with disabilities, and exit row seating.
Airport Customer Service FIT-led focus groups have resulted in things such as
the Dangerous Goods Topic of the Month communication, an Aircraft Walk
Around video, and various pet acceptance/handling communications.
EXECUTIVE ENGAGEMENT
In addition, Delta provides many forums for Delta people to engage with
leaders. Two such programs – Delta’s popular Velvet-360 Tour and the Town
Hall Program – promote two-way, face-to-face conversation between executives
and employees, and provide employees with corporate information and updates
on issues important to them. In 2013, over 65 interactive sessions were held at
stations throughout the world.
The Delta Board Council (DBC) is composed of five employee-members elected
by their peers to provide executives and the Board of Directors candid, unfiltered
reports on the “pulse of the company” as seen from the frontline. The DBC is
a unique communication channel with Delta leaders but by no means the only
one. The DBC is part of Delta’s broader philosophy of employee inclusion and
servant leadership.
3
TRAINING DEVELOPMENT
Delta provides its employees with numerous training and career development opportunities each year. Training requirements are
specific to each operational division, and Delta’s eLearning database
allows employees access to a broad array of courses at any time.
Whether it is mandatory compliance, new hire, annual recurrent training
Based on feedback from the 2012
or seminars, employees have numerous opportunities to increase their
Employee Survey, the Performance
knowledge, skills and abilities. Delta provides employee education
and Talent Management tool was
and communication via magazines, mailings, emails and web-based
upgraded to include a focus on career
documents about pay, benefits, compensation and corporate programs.
development.
Employee resources for the management of career endings include
financial planning resources, EAP retirement counseling and pension and 401(k) investment advice and modeling.
55
AVERAGE TRAINING HOURS PER EMPLOYEE PER YEAR
AVERAGE TRAINING HOURS PER EMPLOYEE PER YEAR
AIRPORT
CUSTOMER SERVICE
CARGO
FLIGHT
OPERATIONS
IN-FLIGHT
SERVICE
Frontline…22.9
Merit…27.4
Frontline…7
Merit…8
Frontline…45
Merit…8.2
Frontline…22.5
Merit…6.3
RESERVATIONS
Frontline…62.3
Merit…10.2
TECHNICAL
OPERATIONS
CORPORATE
Frontline…38.9
Merit…21.9
Frontline…20.5
Merit…6.4
PERFORMANCE MANAGEMENT
Each year, employees engage in a performance management process to ensure that all activities and results are consistent with the
organizational goals expressed through the Rules of the Road and the annual Flight Plan. This review process takes place in three
phases:
• Performance Planning - Employees create performance objectives aligned with the goals of their manager, division and the
overall corporation. Performance plans address both performance objectives and Delta’s High Performance Attributes (HPAs).
HPAs are the behaviors demonstrated to achieve performance objectives.
• Mid-year Review - Each employee has an opportunity to discuss progress on performance objectives and HPAs made over the
previous six months.
• Year-end Review - Individual performance is evaluated against the results delivered for each objective and demonstration
of Delta’s HPAs. Each of these components accounts for 50 percent of an individual’s overall rating, and a final performance
summary and rating is provided at the end of the year.
Launched in early 2013, the new Performance & Talent Management system for merit employees was created to support the
performance planning process. The new system was designed with a focus on career and professional development, an area of
interest to employees based on feedback Delta received via the 2012 Employee Survey. Features include an integrated talent profile
and ability to track development activities.
For the 2013 year-end review process, there was an overall performance management completion rate of 98 percent among
Delta’s merit employee population. Delta ensures that all other employees receive performance feedback and career development
opportunities through their respective divisions.
EMPLOYEE COMPENSATION
Delta is committed to providing industry standard pay at the top of the pay
scale in addition to competitive starting pay and appropriate pay growth within
the scale. Effective Jan 1, 2013, U.S. scale positions were given 4-5 percent base
pay increases. Base pay for international frontline employees not covered by
industry, government or union collective agreements was increased by of 4-5
percent. Also effective Jan. 1, 2013, most merit employees participated in a 5
percent merit pool based on 2012 individual performance and pay compared to
others performing similar work.
56
During summer of 2013, Delta was
awarded the 2013 Alfred P. Sloan
Awards for Excellence in Workplace Effectiveness
and Flexibility by When Work Works, a joint initiative
between the Families and Work Institute and The
Society for Human Resource Management.
SHARED REWARDS FOR OPERATIONAL EXCELLENCE
Delta’s Shared Rewards Program drives employees to deliver safe, clean, ontime travel to our customers. Eligible employees have an opportunity to earn
a monthly cash bonus based on specific operational goals - baggage handling,
completion factor and on-time arrivals. The Shared Rewards Program provides
a payout of $25 for meeting or exceeding one goal, $75 for two and $100 for all
three, with a maximum payout of $1,200 per year for U.S.-based employees.
Eligible international employees participate in Shared Rewards with target
payout values appropriate for each country. In 2013, the 3 operational goals
were met every month, meaning Delta employees received maximum Shared
Reward payouts of $1,200 for the year, totaling approximately $92 million in
Shared Rewards.
PROFIT SHARING TO REWARD FINANCIAL PERFORMANCE
When Delta performs well as a company, customers win, shareholders win
and employees win. U.S.-based employees and the majority of international
employees earn more when Delta performs well through Delta’s annual Profit
Sharing Program. As a result of record profits, Delta’s profit sharing totaled $506
million in 2013. Employees received a Valentine’s Day bonus payout equal to
8.26 percent of their eligible annual pay. Delta’s Profit Sharing Program, among
the most generous in any industry, recognizes employee contributions to Delta’s
successful journey.
Executives have the same health
care and retirement plans as U.S.based frontline employees.
57
EXECUTIVE COMPENSATION
Executive compensation at Delta is highly dependent on Delta’s performance
and is aligned with compensation for all employees. Because the achievement of operational and financial performance goals are
essential to Delta’s success, goals that drive payouts to employees under the Profit Sharing Program and Shared Rewards Program
are included in Delta’s annual management incentive plan. If no profit sharing is paid to Delta employees in a given year, then
payouts under the management incentive plan are capped at target award levels and executive officers receive any payouts related
to operational or revenue performance only in restricted stock rather than cash. These stock awards generally will not vest until there
is a future payout under the Profit Sharing Program. This structure provides management with incentives to deliver value to Delta
shareholders, customers and employees, and aligns their interests with those of employees.
58
BENEFITS
Most U.S.-based Delta employees are eligible to participate in a
comprehensive program of benefits and privileges that range from heath
care coverage, travel privileges and retirement plans to employee assistance,
WorkLife programs and discounts on a wide variety of products and services.
Executives have the same health care and retirement plans as U.S.-based
frontline employees. Outside the U.S., Delta typically provides a set of benefits
that is competitive with what other, similar employers provide in each market.
COMPREHENSIVE HEALTH CARE COVERAGE
In addition to comprehensive health care coverage, Delta offers dental, vision
and flexible spending account benefits to eligible employees. To promote
disease prevention, employees enrolled in a Delta Account-Based Healthcare
Plan are covered for preventive care services performed by a network
provider based on recommendations of the U.S. Preventive Services Task
Force (USPSTF). Beyond the USPSTF recommendations, employees covered
by Delta’s medical options also receive other preventive services, such as
assistance with new and chronic medical conditions.
RES EMPLOYEE CREDITS DELTA
HEALTH REWARDS WITH SAVING
HUSBAND’S LIFE
In order to realize the benefits of the Delta Health
Rewards program, Dick made an appointment for a
routine check-up and was sent for a follow-up stress
test.
Within a matter of hours, Dick was sent to the hospital,
where he underwent an angiogram. One artery was
completely blocked, and two others were 95 percent
blocked. Doctors called his dire health situation a
“ticking time bomb” and noted that had he experienced
a heart event, he would not have survived.
Both Judy and Dick credit preventive care with saving
Dick’s life. “What do you have to lose?” Judy said of the
Delta Health Rewards program. “If everything is fine,
you’ll get that check mark of good health. If everything
isn’t fine, you’ll find out and be able to treat it.”
59
DELTA HEALTH REWARDS
Delta provides top-tier global medical
assistance to help Delta employees
Delta Health Rewards is a voluntary, incentive-based wellness program for U.S.
who become ill or injured while on
employees enrolled in a Delta account-based medical option. It helps these
company business.
employees and their spouses, or same-sex domestic partners, reach health
goals and allows each to earn rewards dollars by completing specific “health
actions,” including getting an annual physical exam, completing the online health assessment and refraining from the use of tobacco
products. The rewards dollars are put into the employees’ health reimbursement account (HRA) or Optum Bank health savings
account (HSA) on January 1st and can be used to pay for eligible medical expenses.
Participation results for each station were shared with leaders, who were encouraged to promote the program to their teams. Many
employees shared stories that through a simple annual physical exam, they were able to detect a medical condition very early and
make positive changes in their health habits to avoid a potentially serious illness.
TRAVEL HEALTH
Delta’s medical plans provide unique travel vaccine coverage in recognition of global travel by employees and family members.
Special programs target employees who travel internationally on company business, especially to developing countries with risks of
malaria, yellow fever, dengue fever and food/waterborne illness.
To address these health challenges, Delta provides education, travel health consultation, company-paid vaccination, anti-malaria
medication and insect repellent to these employees. Travel illness referrals and RN case management are also important components
to Delta’s health strategy. Employee education focuses on promoting awareness, the use of personal protection measures, early
symptom recognition, a 24/7 malaria hotline and prompt medical treatment.
Delta provides top-tier global medical assistance to help its employees who become ill or injured while on company business.
Telephone consultation (available 24/7) can result in a hotel physician visit, a doctor’s office appointment or referral to an emergency
room. Case management continues until the ill employee can travel back home. In rare circumstances, an air ambulance staffed with
a highly skilled transport team of health care professionals is engaged.
BENEFITS FOR SAME-SEX COUPLES
In 2013, Delta took full advantage of changes in U.S. law to implement more
comprehensive spousal benefits for legally married, same-sex couples. The
benefits include tax-free travel and healthcare benefits for all legally married
same-sex couples, regardless of the state where the married same-sex
couples reside or where they were married. This also includes changes from
after-tax to pre-tax dollars to pay premiums for medical, dental and vision
benefits. Employees that had reported their same-sex marriage to Delta were
provided a special enrollment right to modify 2013 healthcare and insurance
benefits. Delta will continue to follow guidance from the law and the related
government entities and will keep the best interests of its people at the
forefront when making any changes to benefits policies.
WORK-LIFE
Employees and their eligible family members have access to Delta’s Employee
Assistance Program, which offers confidential counseling, assessment
and referral service support. Delta also supports flexible employment
opportunities. Ready Reserve employees are eligible to work fewer weekly
hours, receive competitive pay, profit sharing, shared rewards and travel
privileges, but are not eligible to participate in health and welfare or retirement
income benefit plans. The Reservation Sales Work-at-Home program allows
employees to receive many of the same benefits as those working in the call
center without the time and expense of traveling between home and the call
center.
The Alliance for Work-Life Progress (AWLP) awarded Delta the 2014 WorkLife Seal of Distinction for the airline’s best-in-class work-life policies as
demonstrated in 2013. Such workplace strategies and practices include Delta’s
flexibility programs, health and wellness initiatives, community involvement
and success in transforming organizational culture. Delta and other
organizations that achieved this award will be recognized at the Work-Life
Awards Gala during the AWLP Work-Life Forum in Baltimore.
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Delta received the the Alliance for Work-Life
Progress 2014 Work-Life Seal of Distinction
for top tier work-life policies.
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Travel privileges extend to same and
opposite sex spouses and domestic
partners, dependent and adult children,
parents and stepparents, and extended
family and close friends.
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CHAIRMAN’S
CLUB
In 2013, the 17th year for the program, more
than 10,000 nominations were received.
Honorees represented 30 Delta stations in
five countries, and on average, had about 22
years of service.
RISE
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Delta’s Employee Network Groups ended 2013
with a 25 percent increase in enrollment from the
previous year, with RISE Latin America scheduled
to launch in 2014.
TRAVEL PERKS
Through Delta’s pass travel program, employees and family members are eligible for free or reduced fare travel to any destination that
Delta serves. Travel privileges extend to spouses and domestic partners, dependent and adult children, parents and stepparents, and
extended family and close friends.
RECOGNIZING EMPLOYEE CONTRIBUTIONS
Delta’s Chairman’s Club recognizes employees, excluding officers and directors, who consistently demonstrate the highest standards
of service to customers, coworkers and the communities Delta serves. Honorees are nominated by their colleagues and are
recognized at a gala hosted by senior Delta leaders at the Fox Theater in Atlanta each fall. Along with recognition at the gala, their
name is displayed on a Delta aircraft for one year, and they receive two confirmed travel tickets to anywhere Delta serves. In 2013,
the 17th year for the program, over 10,000 nominations were received for the 100 to be recognized.. Honorees represented 30 Delta
stations in five countries, and on average, had about 22 years of service.
EMBRACING DIVERSITY AT DELTA
Delta’s global diversity initiatives strategically position the company for long-term success in a dynamic and challenging environment.
The demands of a rapidly changing global business environment are being met by a creative process of design and implementation
of 21st century workforce development initiatives. For example, the mission of the Realizing Individual Standards of Excellence (RISE)
program is to provide mentors and mentor partners a forum for networking, mutual development, and self-empowerment, thereby
increasing individual and collective career advancement. The program provides opportunities for Delta employees by exposing them
to other divisions within the organization and providing the opportunity to learn from the mentors’ experiences, challenges and
successes in their careers. Mentors and partners also get involved in additional community service and educational opportunities
offered by Delta.
MARTIN LUTHER KING (MLK), JR. DAY
Delta celebrated the MLK legacy with a series of celebrations across the
system in January. What started as a celebration in one city branched out to
four locations – Atlanta, Minneapolis/St. Paul, Detroit and New York – with
more than 1,600 employees in attendance in addition to hundreds of members
of local communities.
COMMITMENT TO
GLOBAL DIVERSITY
Employee Network Groups:
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ABLE Network on Disability
Asian-Pacific Employee Network
CARING FOR DELTA EMPLOYEES
Black Employee Network
DELTA EMPLOYEE & RETIREE CARE FUND
The Delta Employee & Retiree Care Fund is a nonprofit organization
established and managed by Delta employees, retirees and their survivors
to provide assistance during severe financial hardships and disasters. Since
the October 2007 launch of the Delta Employee & Retiree Care Fund, more
than 5,000 Delta family members have received assistance in response to
a personal hardship, with many affected by disasters during 2013, including
Oklahoma tornados, Typhoon Haiyan, Superstorm Sandy, fires and floods.
More than $1.1 million was provided in 2013 to help Delta families facing a
crisis.
Latin American Hispanic Employee Network
Gay and Lesbian Employee Network
Veterans Employee Network
Women’s Employee Network
Realizing Individual Standards of Excellence (RISE)
Realizing Individual Standards of Excellence (RISE)
Asia Pacific
DELTA SCHOLARSHIP FUND
The Delta Scholarship Fund, a 501(c)(3) charitable organization directed by a volunteer board of employees, provides academic
scholarships to employees, their spouse or domestic partner and eligible dependents pursuing an undergraduate or graduate degree.
More than $2.1 million representing 1,780 scholarships has been provided since the Fund launched in 2008 including 506 new
awards for the 2014-15 academic year.
WRENCHED HEARTS
Wrenched Hearts is Delta Air Lines’ employee peer support group for parents who have suffered the tragic loss of a child. Only
those who have experienced this specific loss can truly know the impact that a parent experiences. The founder of Wrenched
Hearts, Tim Moye, knows the pain and struggle of daily life after experiencing such a loss firsthand. Parents never forget, and having
the opportunity to talk about their children is priceless. Wrenched Hearts also provides training in grief support and coping skills.
Members develop relationships and find strength and peace in helping others.
CUSTOMERS
“For our customers, we continue to invest in the overall travel experience and strive for
operational excellence every flight, every day. In 2013, we delivered industry-leading operations
with on-time, cancellations, baggage and customer complaint records that uphold our
commitment of reliability to our customers.”
-- Gil West, executive vice president and Chief Operating Officer
2013 GOALS
2014 GOALS
Improve customer preference measured by “net promoter” score
for both domestic and international service by 10%…ACHIEVED
Earn J.D. Power award for customer service among network
carriers
Earn J.D. Power award for customer service among network
carriers…IN PROGRESS
Win Business Travel News survey
Win Business Travel News survey…ACHIEVED
Be industry leader in D0 (on-time departure) and taxi times
Increase “net promoter” score in select categories by 10%
SAFEGUARDING PASSENGER HEALTH
Because passenger safety during flight is paramount, Delta voluntarily contracts with STAT-MD, a division of emergency services of
the University of Pittsburgh Medical Center. STAT-MD provides 24/7 ground-based medical support for in-flight medical events in
addition to fitness to fly medical screening of passengers. Board certified emergency medicine physicians are knowledgeable about
Delta’s on-board medical capabilities and the effects of altitude on physiology.
In consultation with the captain and medical volunteers, the STAT-MD physician
provides treatment recommendations including whether or not the flight should
divert for more immediate medical care. Delta exceeds FAA regulatory guidance
for on-board medical equipment, supplies and medication. Delta accommodates
battery-operated medical devices, including portable oxygen concentrators
(POCs) that have been pre-approved by the U.S. Department of Transportation
(DOT) and Delta to ensure compatibility with aviation electronic systems.
STAT-MD
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Delta voluntarily contracts with STAT-MD, a
division of emergency services of the University
of Pittsburgh Medical Center. STAT-MD provides
24/7 ground-based medical support for in-flight
medical events that occur at 30,000 feet.
In 2013, Delta participated in a Transportation Research Board-funded research
project on how to make flying an even healthier experience for passengers and
crew.
SUSTAINING OPERATIONAL
EXCELLENCE
The most important thing Delta can provide its customers is a safe and ontime flight. Delta’s operational performance in 2013 led the U.S.-based, global
network carriers. In data published by the U.S. Department of Transportation,
Delta people drove best-in-class on-time arrivals at 84.5 percent and a
completion factor of 99.7 percent. During the year, there were 119 days where no
cancellations were seen due to aircraft maintenance reasons and 72 days of no
cancellations for any reason.
CUSTOMER SATISFACTION SURVEYS & RANKINGS
Delta has established a proactive customer survey program that sends
customers one of 20 possible surveys based on the customer’s known
experience during their travels. The surveys capture Delta’s performance with
the following areas: handling of special situations (e.g., oversold flight), service
recovery situations, airport experience, and experience onboard the aircraft.
Results are aggregated into scores for all levels of the organization from frontline agents to executive leaders. Delta included customer satisfaction measures
in key performance indicators.
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Delta people drove best-in-class
on-time arrivals at 84.5 percent
and a completion factor of 99.7 percent.
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During the year, there were 119 days
where no cancellations were seen
due to aircraft maintenance reasons and 72 days
of no cancellations for any reason.
ALL THE WAY UP
In 2013, customers ranked Delta at 4.39 on a 5.00 point scale for airport
experience; a 2 percent improvement over 2012 and a 6 percent improvement
over 2011. With respect to service recovery, customers ranked Delta at 3.49
representing a 3 percent improvement over 2012 and a 6 percent improvement
over 2011. In some instances, airport leaders will contact customers that
provided low scores to better understand and resolve the customer’s concern
and take local action if necessary. Customers may also voice concerns or
complaints through Delta’s Customer Care center.
Using survey feedback, Delta implemented “Care While Waiting,” a
program designed to give a personal touch to service recovery situations by
accommodating a customer’s needs in a given situation rather than having a
‘one-size fits all’ response to a recovery event. To date, customers have shown
they prefer this approach and customer satisfactions scores indicate further
upward momentum as a result.
Delta has begun linking Net Promoter Score (NPS) to survey results in order to
improve the customer experience. In 2014, Delta also began surveys related to
the customer’s experience with Reservations and SkyClub. Additionally in 2014,
customers will be surveyed on aircraft cleanliness which has been selected as a
key performance indicator for 2014.
INNOVATING EMERGENCY
READINESS, RESPONSE AND
RECOVERY
The goal of Delta’s Emergency Response and Business Continuity programs
is to ensure the airline has appropriate plans to mitigate most major business
disruptions. The groups are comprised of both corporate and divisional
representatives who work hand in hand to develop, maintain, and exercise the
plans implemented during a crisis.
The focus of Emergency Response is to continuously improve the processes
for responding to an aircraft incident. Delta complies with both foreign and
domestic family assistance laws enacted to protect accident victims and their
families, and ensure airlines meet specific obligations. In order to meet these
laws, Delta trains thousands of employee volunteers– known as the Delta Care
Team– who work with survivors and/or their families involved in an aircraft
incident. The team is capable of being deployed anywhere in the world within
hours of an initial notification.
In 2013, the Emergency Response program completed the worldwide roll-out of
the Local Emergency Response Action Plan (LERAP) template. This document
guides all stations when responding to an aircraft incident and ensures a
Delta ended 2013 ranked No. 2 for fewest
customer complaints reported to the U.S.
Department of Transportation, with a
complaint ratio of .59 per 100,000 customers.
With this, Delta met a year-end goal to lower
the rate by 20 percent as part of its All The
Way Up campaign. The program highlights the
most common complaint drivers
and helps provide awareness
and solutions to improve
customer service.
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Delta has an established proactive
CUSTOMER SURVEY PROGRAM
that sends customers one of 20
possible surveys based on the
customer’s known experience
during their travels.
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The
“CARE WHILE
WAITING”
program provides a personal touch
to service recovery situations by
accommodating a customer’s needs
in a given situation, rather than
having a ‘one-size fits all’ response
to a recovery event.
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MINIMIZING
CUSTOMER
INCONVENIENCE
Delta’s VIPER automated rebooking system,
launched in 2013, has helped minimize customer
inconvenience by getting them to their destinations
as quickly as possible. The software, an acronym
for Virtual Inconvenienced Passenger Expedited
Reprotection, uses creative routings and
connecting points to get customer where they
need to go, helping to minimize delays after a
cancellation. VIPER’s ultimate goal is to minimize
average lateness and provide customers with more
options
within the same day when possible.
8
consistent and timely response. The same document is used by joint venture partners AirFrance and KLM to provide mutual
assistance at joint stations around the world.
The Business Continuity group works to mitigate disruptions to customers and
employees from the loss of key business infrastructure - technology, facilities,
personnel, vendor, and natural/man-made disasters. Due to the wide-ranging
nature of events/disasters that can occur at any global corporation, it is just
as important to maintain an overall response plan for consistently responding
to any given crisis. This plan allows for variation yet maintains focus on key
company objectives with timeliness being key to success. In addition to
departmental business continuity plans, Delta has taken the steps to greatly
improve its response capabilities which includes a state-of-the-art notification
tool to notify key responders, a crisis management center designed to facilitate
communication, and training for key responders so they understand their role in
the response process. Having the right tools in the hands of those who can make
key decisions and allocate the company’s resources as necessary is important.
At the heart of any Delta response is the Operations and Customer Center
(OCC) located at the world headquarters in Atlanta. This center operates
24/7/365 with the daily task of managing Delta’s day-to-day operation, but
when a crisis occurs, this is the team that kicks off the initial response plan. The
OCC will take the lead in responding until the crisis responders are in place and
ready to assume control of the event.
DEDICATION TO FLIGHT SAFETY
Delta’s mission focuses on reducing risk and supporting safe flying operations.
In 2013, Delta advanced the safety culture of the airline through program
enhancements and continuous improvement. In addition to the advancements
made internally, Delta also participated in and led many industry safety
initiatives.
AVIATION SAFETY ACTION PROGRAM (ASAP)
Previously, Delta operated the Aviation Safety Action Program (ASAP) for
pilots, load planners, dispatchers, and maintenance technicians. During 2013,
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In 2013, the Emergency
Response program completed
the worldwide roll-out of the
LERAP template, which guides
all stations when responding to
an aircraft incident and ensures a
consistent and timely response.
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DELTA’S ADVISORY
BOARD ON DISABILITY
met in August 2013 to discuss recommendations into
the travel experience for passengers with disabilities.
During this annual event, Delta partners with the
disability community to look for ways to improve
customer support and further differentiate their
services from the competition. During the two-day
working meeting, board members from around the
country shared their own recent travel experiences
along with presentations on customer-focused
projects and innovative tools to aid in the training and
education on different disabilities. Research conducted
through Delta’s Task Analysis Assessment Tool and
the Disability Action Plan - two long-term projects
aimed at identifying where passengers with disabilities
experience difficulty while traveling - was discussed in
addition to meaningful best practices for supporting
people with specific disabilities.
Delta implemented a new ASAP for flight attendants. With the addition of
the In-Flight division, Delta now provides a safety reporting mechanism for
approximately 40,000 frontline employees. With an improved reporting
culture and the power of information sharing, numerous systemic safety and
operational improvements were completed during the year.
FLIGHT OPERATIONAL QUALITY ASSURANCE (FOQA)
During 2013, the Flight Operational Quality Assurance (FOQA) team
continued to expand its capabilities with the addition of the Boeing 737-900
and Boeing 717-200 fleets into the program. The Boeing 737-900 aircraft
is the first fleet at Delta to utilize wireless FOQA technology. Wireless
technology will revolutionize FOQA’s ability to collect and analyze flight data
with significantly improved speed and efficiency. Additionally, the FOQA team
continued to target new avenues for data utilization such as NextGen airspace
enhancements, support of improved meteorology tools, fuel conservation, and
improved education for maintenance taxi operations.
SPECIAL WINTER OPERATIONS AIRPORT (SWOA) PROGRAM
Delta continued an industry leading safety program, the Special Winter
Operations Airport (SWOA) program, during 2013. With a focus on mitigating
the risk of runway excursions during winter weather conditions, the SWOA
program included two new airports for the 2013-14 winter season. This
program focuses on airport infrastructure, surrounding terrain, snow removal
and runway friction measuring procedures, and the timely and accurate
communication of field conditions. Delta and Delta Connection carriers
completed many airport visits throughout the year to promote and enhance
winter operations policies and procedures.
With the addition of the
In-Flight Service division to the
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AVIATION SAFETY
ACTION PROGRAM,
AVIATION SAFETY INFORMATION ANALYSIS AND SHARING (ASIAS)
As with many internal improvements, Delta has continued to support industry
safety objectives through many organizations such as our participation in
Delta now provides a safety reporting
and the use of the Aviation Safety Information Analysis and Sharing (ASIAS)
system. The ASIAS system is a tool provided by the FAA that promotes the
mechanism for approximately 40,000
open exchange of de-identified safety information in order to continuously
frontline employees.
improve aviation safety. In addition to ASIAS, Delta is an active partner in
many national and global safety groups, such as Airlines for America and,
SkyTeam. Delta has also led an effort to promote safety advances with each of
the Delta Connection partners through the Delta Connection Carrier Safety Alliance.
In addition to enhancements to ASAP, FOQA, SWOA and other industry programs, Delta completed numerous investigations,
studies, and recommendations that led to training, as well as technical, and procedural enhancements for Delta, Delta Connection,
and the entire aviation industry. Delta Flight Safety remains dedicated to the safety of every passenger and crew member on board
Delta flights.
Delta was the
FIRST PASSENGER
AIR CARRIER
SAFETY MANAGEMENT SYSTEMS
Implementation of regulator, air carrier and airport Safety Management Systems
(SMS) is the next step in the evolution of safety in the aviation industry’s global
to formally be offered and join
arena. Mandated by the the International Civil Aviation Organization (ICAO),
SMS concepts are already regulatory standards in Canada, most of Europe and
the FAA’s Safety Management
many other countries. In an effort to ensure a complete understanding and
Systems (SMS) pilot project for
consistency of such a system, the U.S. has not yet mandated the implementation
the development of an
of SMS. Delta was the first passenger air carrier to formally be offered and join
the FAA’s SMS pilot project for the development of an SMS program. This project
SMS program.
set forth a phased approach to SMS implementation.
Delta’s SMS was fully implemented by January 2011; however, the FAA has yet
to release a final rule. The International Air Transport Association (IATA) will
require SMS by 2015 for all carriers seeking IATA Operational Safety Audit (IOSA) registry.
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The philosophy behind SMS is that the majority of the operational safety risks remaining and not already engineered out of the
system cannot be mitigated through traditional one-sided and reactive policies. Only through a formal, top-down and systemic
approach that includes the necessary organizational structures, accountabilities, policies, and procedures, can operational safety
hazards be identified and risks mitigated to establish and promote a safety culture.
Flight safety is a continuous improvement process and the journey continues at Delta. While SMS is not complex, an airline is a
complex, integrated business. Delta not only flies an aircraft between two cities, but employees also maintain, cater, load and unload,
and dispatch safe and accurate flight plans, taking into account weather, routing, and any other unique information the crews need to
know. Each of those activities is a separate process that has its own inherent risks and mitigation strategies. A comprehensive SMS
considers each piece individually, as well as all organizational interfaces and potential process changes needed to run our business
safely and efficiently. SMS allows Delta to manage those changes effectively within the scope of the entire operation.
Internally, Delta is partnering with the Delta Connection carriers to share best practices, lessons learned and implementation
strategies, ensuring all Delta carriers have initiated steps to develop SMS. SkyTeam Alliance partners participate in joint safety
assessments and initiatives where one or more carriers face similar safety concerns. Together with its partners in the industry, Delta
continues to make SMS an even more robust safety process.
HAZARDOUS MATERIALS
Delta transports hazardous materials (HazMat) as revenue cargo and as
company material to support technical operations. More than half (53 percent)
of these shipments are dry ice used to cool items that are not classified as
HazMat. Almost 10 percent of these shipments are diagnostic specimens
shipped for testing or analysis. Company material makes up 17 percent of the
total shipments in 2013 and the final 20 percent are fully regulated HazMat
moved as revenue cargo.
Delta has an active HazMat program that is compliant to Titles 14 and 49,
Code of Regulations, as well as the ICAO Technical Instructions. To ensure
compliance, the Delta Dangerous Goods Council oversees HazMat processes in
all affected divisions at Delta and Delta Connection partners. The Delta program
also has oversight on HazMat regulations for passengers and crew. One change
for 2013 was the addition of HazMat awareness screens for passenger’s carryon and checked baggage. These screens are displayed during ticket purchase
and flight check-in and on the internet at delta.com, mobile devices and airport
kiosks.
ENSURING FLIGHT SECURITY
Delta continues to evolve its security program, seeking to mitigate securityrelated risks to passengers and employees while minimizing the impact
through customer service initiatives. Throughout 2013, Delta continued
to work with government partners to expand a number of these customer
service initiatives for the benefit of our passengers, helping to streamline
various aspects of the security and immigration process to provide for a
better overall travel experience.
AUTOMATED PASSPORT CONTROL (APC) KIOSKS
Delta has partnered closely with U.S. Customs and Border Protection (CBP)
to develop and deploy efficient self-service kiosks, where customers provide
government required information and scan their passport before speaking
with a CBP officer. Implementation of these kiosks at two Delta gateways
(New York’s John F Kennedy International Airport and the Seattle Tacoma
International Airport) has significantly reduced the time passengers have
to wait for processing into the United States. This program is currently
being deployed at a number of additional international gateways.
TSA PRE✓
Working with the Transportation Security Administration (TSA), Delta has
continued to serve as an industry leader in facilitating increased passenger
access to expedited security screening through the Pre✓ program. In addition
to working with the TSA to explore ways to expand the program to a larger
population of customers, Delta has taken a leading role in the implementation of
TSA application centers at major hubs and gateways so that customers have the
opportunity to sign up for the program.
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AWARENESS
HAZMAT
screens for passenger’s carry-on and checked
baggage are displayed during ticket purchase and
flight check-in. They are also available on mobile
devices, airport kiosks and delta.com.
delta.com
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The new and improved delta.com offers customers
an easier way to organize and prepare for their trip
with sections like My Trips and My Wallets.
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IN FLIGHT
IDEAS
As Delta explores new ways to improve the
onboard experience, the company has launched
Ideas in Flight, which will test new products
and services by gathering real-time feedback
from passengers. Customers can participate by
accessing the program’s website for free via inflight Wi-Fi while on board transcontinental flights,
or through the dedicated tab on the Delta Facebook
page. Using these outlets, customers can view
Delta initiatives and provide feedback. Delta will
use this feedback to determine if the product or
service should be refined, added permanently to
the transcontinental service, or expanded across
the system.
SOCIAL MEDIA
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UPDATES
Seeking to enhance Portuguese-speaking
customer experience, Delta launched two
new social media channels. Delta’s Twitter
(@DeltaAjuda) and Facebook channels were
created to improve the travel experience for
Brazilian consumers.
Delta’s blog (takingoff.delta.com) was also
launched in 2013.
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Delta partnered with TSA
to help expedite the
security screening program
for Delta passengers.
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SELF SERVE
KIOSKS
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Delta has partnered closely with U.S. Customs and
Borders Protection (CBP) to develop and deploy selfservice kiosks where customers provide government
required information and scan their passport before
speaking with a CBP officer.
ALTERNATE PASSENGER PRESCREENING METHOD
Building on a successful pilot at London Heathrow Airport over the past two
years, Delta continues to work with partners in both the U.S. and UK to develop
and deploy an alternate passenger interview methodology that is more effective
and efficient for security purposes.
CUSTOMER INPUT
Delta collects and analyzes a vast amount of customer feedback on their
experiences with U.S. government security screening procedures, as well as
wait times, in order to work with the government on improving the passenger
experience.
MOBILE AND BOOKING
ENHANCEMENTS
MOBILE AND BOOKING ENHANCEMENTS
Delta continues to focus on an improved customer experience across the
delta.com website. Such improvements include an enhanced SkyMiles tracking
experience, the opportunity for customers to offset their carbon emissions
at any point in their trip, and the ability to opt into TSA Pre✓. Furthermore,
customers can now experience 100 percent WiFi coverage on all domestic
mainline aircraft and two-class regional jets, with free access to
delta.com, mobile apps and select shopping sites. In-flight enhancements
include a library of stored entertainment options, power outlets at select seats,
and individual on-demand entertainment on all flights longer than three hours.
Delta was the first carrier to apply to the FAA for permission to allow the
passengers to use portable electronic devices in all phases of flight. On average,
the change offers customers an additional 20-30 minutes of time with their
devices on.
FLY DELTA APP FOR IPAD
Delta released its new Fly Delta app for iPad, adding new functionality and a
new look to the already popular app including a feature that lets passengers
“see” through the bottom of the plane, with Glass Bottom Jet. Customers on
flights have the ability to view the ground below in a unique way that includes
maps, social networks and content while connected to the Internet on any of
Delta’s more than 800 Wi-Fi-equipped aircraft. The app also includes travel
planning tools to book a trip, destination guides, flight check-in, an interactive
trip map and a “What’s Next” feature to help guide customers to the next point
in their journey.
DELTA.COM
The new delta.com design features a new My Delta section which consolidates
trip summaries, account details, personal preferences, payment information
and travel settings in a single location. This allows customers to easily access
the personalized features that mean the most to them and helps maximize
their travel plans. An improved My Trips section brings together all details of
a customer’s trip including air, car, hotel, Trip Extras, weather information and
travel alerts.
TERMINAL ENHANCEMENTS
PORSCHE
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PICK UP PROGRAM
Delta’s Porsche pick-up service, which began at
Atlanta Hartsfield- Jackson International Airport
in 2011, has expanded to three major airports:
Los Angeles International Airport, New York’s
John F. Kennedy International Airport and
Minneapolis/St. Paul International Airport. The
service selects Diamond Medallion members
to help them make tight connections. The
unsuspecting customers will be greeted at the
aircraft boarding door by a Delta Elite Services
representative, who will escort them with their
baggage to an awaiting vehicle and on to their
connecting gate. Each customer is selected for
transfer based on a number of factors, including
flight operation, connection timing and member
status.
SELF-SERVICE KIOSKS
Changes to Delta’s self-service check-in kiosk designs were launched across all
worldwide locations in September 2012 on more than 2,500 individual kiosks.
The new design made customer check-in more efficient in 2013, as it reduced
the average check-in time by more than 15 percent. The improved design
streamlines the process, improves the speed of check-in, offers 12 language
options and gives customers the ability to self-select options they find most
important in their experience.
SKY CLUB INVESTMENTS
As Delta focuses on Sky Club upgrades at various airports, these new build
projects are becoming increasingly more sustainable in design. Many of
the typical components used in new builds are LEED point contributors and
include materials such as recycled carpeting manufactured by Shaw, DuPont
Quartz surface; Toto faucets and flush valves; glass wall tiles manufactured by
Crossville; and HVAC systems which balance airflow, reduce airflow supply in
areas not in use, and reduce system operation during closures.
IN-FLIGHT UPGRADES
BUSINESSELITE IMPROVEMENTS
Delta will complete the installation of flat-bed seating across its fleet of 145
widebody international aircraft in June 2014. Each day, Delta offers more than
5,000 flat-bed seats with direct aisle in BusinessElite® - more than any other
airline. Installation of flat-bed seating on the 757-200 transcontinental fleet operating between New York-JFK and Los Angeles, San Francisco and Seattle
- will be complete in June 2015.
Delta partnered with Westin to offer new Westin Heavenly In-Flight bedding
in BusinessElite cabins throughout the world. Old BusinessElite duvets were
donated to various charities and orphanages of local communities where we fly:
South Africa, Japan, Peru, Guatemala and Haiti.
Additionally, BusinessElite amenities kits were upgraded to feature Tumi and
Malin+Goetz products. Old sleep masks, socks and toiletries were donated to
organizations in Guatemala, Honduras and Haiti.
MENU ENHANCEMENTS
Delta’s high value customers and members of the media were invited to
Restaurant Eugene in Atlanta to sample the airline’s BusinessElite menus for key
transatlantic routes from Atlanta. The menus have been designed by Chef Linton
Hopkins, winner of Delta’s “Cabin Pressure Cook-Off” competition, who uses
ingredients grown or sourced in Georgia to prepare his latest offerings.
Chef Hopkins sources his poultry from White Oak Pastures, a Georgia farm that
exemplifies responsible livestock practices.
Delta has also expanded Economy Comfort offerings on transcontinental flights
with healthy wraps developed by California-based Luvo. The recent addition
comes in response to positive customer feedback on Luvo snacks that are
featured on Delta’s West Coast Shuttle between Los Angeles and San Francisco.
The airline was commended by The Pew Charitable Trusts for its new in-flight
food selection, including poultry from partner Luvo that was raised without
antibiotics or added hormones.
FLY DELTA
The new
app
for iPad offers a feature called “Glass
Bottom Jet,” which allows passengers to
“see” through the bottom of their plane.
83
84
SKY CLUB
INVESTMENTS
The Delta Sky Club at San Diego International
Airport features LEED certified paint, ceiling tile
products and water-based HVAC duct sealant.
IN-FLIGHT
AMENITIES
85
Delta partnered with Westin to offer new Westin
Heavenly In-Flight bedding in BusinessElite cabin.
Old BusinessElite duvets were donated to charities
in South Africa, Japan, Peru, Guatemala and Haiti.
86
HEALTHIER
MENUS
Delta expanded the Economy Comfort menu
on transcontinental flights with healthy wraps
developed by California-based Luvo.
87
Chef Linton Hopkins, winner of Delta’s
“Cabin Pressure Cook-Off” competition, uses
ingredients grown or sourced in Georgia. Poultry is
sourced from White Oak Pastures, a Georgia farm
that exemplifies responsible livestock practices.
INVESTORS
“Delta is leading an industry revival and attracting new investors. In 2013, we achieved our fourth
consecutive year of profitability, rejoined the S&P 500 index and began rewarding shareholders
with quarterly dividends and a share repurchase program. Over the years, we have reshaped our
business model to reduce financial risk and to further enhance our sustainability, striving to be
the airline of choice for employees, customers and investors.”
-- Paul Jacobson, executive vice president and Chief Financial Officer
2013 FINANCIAL GOALS
2014 FINANCIAL GOALS
Produce at least $300M of value through the Monroe Trainer
Refinery…IN PROGRESS
Quarterly dividends of approximately $200 million a year
Deliver projected return from $1 billion ancillary and seat related
revenue … ACHIEVED
Produce at least $300M of value through the Monroe Trainer
Refinery
Improve ancillary revenue to $670M and improve digital channel
customer satisfaction to industry-leading levels
FINANCIAL PERFORMANCE 2013
2011
2012
2013
$35,115
$36,670
$37,773
$25, 714
$26,432
$26,021
Employee Wages and Benefits
$7,158
$7,638
$8,226
Payments to Providers of Capital
$1,122
$1,044
$1,243
$76
$100
$89
Payroll
$1,541
$1,550
$1,858
Other
$300
$377
$312
$9.7
$11.3
$23.4
$8.09
$11.87
$27.47
$6.62-13.00
$8.01-12.1
$11.97-29.44
$490.0
$340.0
$461.0
Net Profit1
$1,190
$1,552
$2,699
Operating Profit1
$2,243
$2,600
$3,526
(in millions USD, except per share data)
DIRECT ECONOMIC VALUE GENERATED
Revenue
ECONOMIC VALUE DISTRIBUTED
Non-Labor Operating Costs1
Payments to Government
Income, federal, state
Property
COMMUNITY INVESTMENTS
Contributions
SHAREHOLDER VALUE
Share price at Dec. 31
Share price range
SUPPLIER SPEND
Minority Women owned Business Enterprise spend
ECONOMIC VALUE RETAINED
These items are non-GAAP financial measures as defined in the Appendix. Reconciliations to the corresponding GAAP financial measures and the reasons Non-GAAP financial measures are used are
1.
included in the Appendix.
Delta’s net income for 2013 was $2.7 billion, excluding special items, a $1.1 billion increase over 2012. 2013 results include $506
million in profit sharing expense. Delta generated nearly $5 billion of operating cash flow and $2.1 billion of free cash flow in 2013,
allowing the company to reduce its adjusted net debt at the end of 2013 to $9.4 billion, contribute an incremental $250 million above
its minimum required funding to its defined benefit pension plans, and return $350 million to shareholders through a combination of
$100 million of dividends and $250 million of share repurchases.
88
S&P 500
On Sept. 10, 2013, Delta shares were added to Standard & Poor’s 500 index of large companies.
89
90
91
STOCK PRICE PERFORMANCE
In 2013, Delta’s stock price increased more than 130 percent, resulting in the highest market capitalization of any U.S.
carrier. In 2013, Delta was the fourth best performing stock in the S&P 500.
STANDARD & POORS CREDIT RATING
In December 2013, Delta’s corporate credit rating was raised to a “BB- and Stable Outlook” from a “B+ and
CreditWatch Positive” rating. This improvement in credit rating lowers the company’s borrowing costs and increases
Delta’s access to capital.
CAPITAL DEPLOYMENT
In May 2013, Delta’s Board of Directors approved a capital deployment program that will return more than $5 billion of
value to shareholders by 2016 through the following channels:
• Quarterly dividends of approximately $200 million per year
• Share repurchases of $500 million
• Debt reduction of $3 billion
• Pension funding of $1 billion
MANAGING DELTA’S LARGEST EXPENSE
As global jet fuel prices have risen significantly in recent years, Delta has focused on finding innovative solutions to managing its
largest expense. The fuel optimization campaign is a broad effort that touches numerous areas of Delta’s operation and financial
strategy.
One major focus is on reshaping Delta’s domestic fleet, reducing the number of
aircraft that are less fuel-efficient and replacing them with larger, more efficient
aircraft that also provide a superior on-board experience for customers and are
more environmentally friendly.
Delta has also implemented a sophisticated financial hedging program, which
reduces the risk of volatility in global energy markets and makes it easier to plan
for fuel costs.
92
Delta’s refinery in Trainer, Penn.,
provides approximately
80 percent of Delta’s
domestic fuel needs in the
United States.
Additionally, Delta’s Monroe Energy subsidiary operates the airline industry’s only oil refinery, in Trainer, Pa., which refines jet fuel
and exchanges gasoline and other refined products for additional jet fuel, providing about 80 percent of Delta’s domestic fuel needs
in the U.S.
2
Alongside jet fuel production, Delta believes that Monroe Energy has helped
keep the overall cost of jet fuel down by maintaining the refining capacity in the
northeastern U.S. that otherwise would have been shuttered. A team of energy
industry experts continues the process of improving the refinery’s operations
and maximizing the amount of jet fuel produced, which is expected to provide
further savings in 2014.
FLEET STRATEGY
Delta’s ongoing sustainability efforts include implementing innovative strategies
to reduce aircraft fuel burn per passenger as a response to the volatility and
magnitude of Delta’s largest variable cost. Delta’s fleet strategy also aims to
improve revenue generation and produce capacity more efficiently.
In 2013, Delta began taking delivery of the first of 100 new Boeing 737-900ERs,
88 Boeing 717-200s, and 40 new Bombardier CRJ-900s. These larger and more
fuel-efficient jets pave the way to continue to retire 50-seat regional jets, as well
as older mainline aircraft. These investments are key to ensuring Delta reduces
its carbon footprint and meets the IATA 1.5 percent average fuel efficiency
improvement goal year over year.
The combination of these aircraft deliveries and retirements and more efficient
use of aircraft cabins allows Delta to generate the same capacity levels with
fewer departures, yielding economic improvement, environmental benefits, and
reduced airspace congestion.
INVESTING IN STRATEGIC REGIONAL
PARTNERSHIPS
Initiatives such as replacing older
aircraft with larger, more fuel efficient
jets help to reduce carbon
emissions per passenger.
93
94
Delta gained improved access to London Heathrow, the leading transatlantic
Delta PARTNERED with Virgin Atlantic,
marketplace, through its alliance with Virgin Atlantic. The alliance began
allowing the airline to expand its access
with a codesharing agreement in July 2013, and the airlines were granted full
to trans-Atlantic routes out of LondonAntitrust Immunity in September 2013. On Jan. 4, 2014, the alliance began
Heathrow, in particular to and from New
operating with both airlines sharing both revenue and expenses from all joint
York-JFK.
venture transatlantic flights regardless of which carrier operates the service.
The partnership will help Delta compete in the London Heathrow market and
significantly expand its London to JFK service. The enhanced London service
also allows Delta and its partners to offer service in each of Europe’s leading markets, a network unmatched by others in the industry.
Virgin Atlantic’s reach will expand significantly with its new access to Delta’s North America network.
BECOMING THE BEST U.S. AIRLINE IN LATIN AMERICA AND
THE CARIBBEAN
Delta has invested more than U.S. $65 million in Aeroméxico as part of a long-term exclusive commercial alliance and entered a code
sharing agreement with Aerolíneas Argentinas solidifying its footprint in Latin America.
BRAZIL
As Brazil is expected to become the fourth-largest aviation market in the world
by 2014, with increased customer interest in the upcoming 2014 FIFA World
Cup and the 2016 Summer Olympics, the Delta-GOL codeshare agreement
enhances Delta’s network by providing access to 23 destinations in Brazil.
Through this partnership, customers have reciprocal access to GOL’s VIP
lounges in Sao Paulo, Rio de Janerio, Atlanta, New York-JFK and Detroit. Access
to priority check-in and boarding are available for customers on both carriers.
Delta was recognized with the “Best
Airline to North America” award on the
Prêmio Destaque Companhia
de Viagem.
95
Based on feedback from frequent business travelers, new BusinessElite flat-bed seats with direct aisle access are available on flights
from New York to Sao Paolo. In addition, Westin Heavenly In-Flight bedding, Tumi and Malin+Goetz amenity kits and Latin-inspired
meal selections are available in the BusinessElite cabin.
As a result of these efforts, Delta was recognized with the “Best Airline to North America” award on the Prêmio Destaque
Companhia de Viagem. The award was delivered by Grupo Companhia, responsible for travel magazine and television show
Companhia de Viagem.
AS A RESULT OF THE EFFORTS OF
OUR EMPLOYEES…
THREE GOLD
ADDY
AWARDS FOR
THE DELTA
KIOSK
THE
ADVERTISING
CLUB OF
METROPOLITAN
WASHINGTON
BEST
AIRFRAME
MRO
PROVIDER IN
THE
AMERICAS
AIRCRAFT
TECHNOLOGY
ENGINEERING &
MAINTENANCE
MAGAZINE
FIVE STAR
DIAMOND
AWARD FOR
THE NEW
TERMINAL 4
AT NEW
YORK - JFK
AMERICAN
ACADEMY OF
HOSPITALITY
SCIENCES
BEST NORTH
AMERICAN
AIRLINE
BUSINESS
TRAVELLER
MAGAZINE
NAMED FOR THE THIRD
CONSECUTIVE YEAR TO
THE DJSI FOR NORTH
AMERICA, RECOGNIZING
COMMITMENT TO
INTEGRATE
SUSTAINABLE PRACTICES
INTO THE WORKPLACE
BRONZE LION
FOR THE FLY
DELTA APP
THE CANNES LIONS
INTERNATIONAL
FESTIVAL OF
CREATIVITY
DOW JONES SUSTAINABILITY
INDEX
96
DELTA AWARDS
NO. 1
RANKING IN
THE
HOLISTIC
WORLD
SAFETY
AWARDS
AIR TRANSPORT
RATING
AGENCY
“MOST
ADMIRED
AIRLINE”
AND
OVERALL
“SUPPLIER OF
THE YEAR”
BY THE
READERS'
CHOICE
AWARDS
THE BEAT
NO. 1 FOR THE
THIRD
CONSECUTIVE
YEAR IN THE
BTN ANNUAL
AIRLINE
SURVEY; ED
BASTIAN
NAMED ONE
OF THE TOP
25 MOST
INFLUENTIAL
BUSINESS
TRAVEL
EXECUTIVES
OF 2013
BUSINESS
TRAVEL NEWS
97
RESERVATION
SALES AND
CUSTOMER CARE
NAMED “BEST OF
THE BEST” AND
ALLISON
AUSBAND, V.P.RESERVATION
SALES AND
CUSTOMER CARE,
NAMED TOP
CUSTOMER
SERVICE
EXECUTIVE AS
PART OF THE
INTERNATIONAL
SERVICE
EXCELLENCE
AWARDS
14 LEADING EDGE
AWARDS FOR U.S.
AIRLINES INCLUDING
GOLD FOR BEST
DOMESTIC AIRLINE,
DOMESTIC AIRLINE
AIRPORT LOUNGE, BEST
DOMESTIC AIRLINE
FREQUENT-FLYER
PROGRAM, BEST
DOMESTIC AIRLINE
PREMIUM-CLASS
SERVICE, BEST FLIGHT
EXPERIENCE TO AFRICA
AND BEST PRIVATE JET
TYPE FOR DELTA
PRIVATE JETS
EXECUTIVE TRAVEL
MAGAZINE
CUSTOMER SERVICE
INSTITUTE OF
AMERICA
98
MOST
ADMIRED
AIRLINE
WORLDWIDE
IN THE 2013
WORLD'S
MOST
ADMIRED
COMPANIES
AIRLINE
INDUSTRY
LIST
NAMED MOST
HONORED
COMPANY,
ACKNOWLEDGING
RICHARD
ANDERSON AS
BEST CEO (BUY
AND SELL SIDE),
PAUL JACOBSON
AS BEST CFO (BUY
SIDE) AND DELTA
AS BEST COMPANY
INVESTOR
RELATIONS (BUY
SIDE)
INSTITUTIONAL
INVESTOR
FORTUNE
MAGAZINE
CORPORATE
COMPANY
OF THE YEAR
PENCIL
AWARD FOR
MOBILE
APPLICATIONS
/SITES/
SERVICES/
UTILITIES FOR
THE FLY DELTA
APP
THE ONE SHOW
LATINO
TRENDSETTER
AWARDS
99
DELTA CEO
RICHARD
ANDERSON
NAMED 2013
TONY
JANNUS
AWARD
WINNER
BEST
DOMESTIC
AIRLINE AT
THE READER’S
CHOICE
AWARDS;
RICHARD
ANDERSON
RECEIVES
LIFETIME
ACHIEVEMENT
AWARD
BEST
DOMESTIC
AIRLINE
TRAVELAGE
WEST
THE TONY
JANNUS
DISTINGUISHED
AVIATION
SOCIETY
TRAVEL WEEKLY
DELTA RECOGNITION
BEST AIRLINE
FOR DOMESTIC
FIRST CLASS,
BEST
FREQUENT-FLYER
CUSTOMER
SERVICE,
AMERICAS
(SKYMILES) AND
BEST
FREQUENT-FLYER
AFFINITY CREDIT
CARD
PROMOTIONS
(DELTA SKYMILES
BY AMERICAN
EXPRESS).
GLOBAL
TRAVELER
MAGAZINE
2ND AMONG
MAJOR
NETWORK
AIRLINES
J.D. POWER
AND
ASSOCIATES:
NORTH
AMERICAN
AIRLINE
SATISFACTION
STUDY
GOLD, SILVER AND
BRONZE STEVIES
FOR DELTA
RESERVATIONS IN
FRONTLINE
CUSTOMER SERVICE
PROFESSIONAL OF
THE YEAR TRANSPORTATION
GOLD
AIRLINE OF
THE YEAR
LAURIERS DU
VOYAGE
D’AFFAIRS
GOLD STEVIE FOR
@DELTAASSIST IN
THE ECOMMERCE
CUSTOMER SERVICE
AWARD
AIRLINE
INDUSTRY
LEADERSHIP
AWARD
TOP TRAVEL
MAGAZINE IN
CHINA
TOP U.S.
AIRLINE FOR
BEST
OVERALL USE
OF SOCIAL
MEDIA
TRAVEL+LEISURE
GOLD STEVIE FOR
DELTA SALES
SUPPORT AND
SILVER STEVIE FOR
RESERVATIONS AND
CUSTOMER CARE IN
CUSTOMER SERVICE
DEPARTMENT OF
THE YEAR AIRLINES,
DISTRIBUTION &
TRANSPORTATION
STEVIE AWARDS
FOR SALES &
CUSTOMER SERVICE
ALFRED P.
SLOAN AWARD
FOR
EXCELLENCE IN
WORKPLACE
EFFECTIVENESS
AND
FLEXIBILITY
WHEN WORK
WORKS AND
THE SOCIETY
FOR HUMAN
RESOURCE
MANAGEMENT
100
AIRLINE OF
THE YEAR
Delta was
named the Airline of the Year by ATW.
APPENDIX
GRI 3.1 INDICATORS
While a complete materiality analysis has not been completed for Delta in the transition over to G4, SASB and internal materiality
analyses were used to identify 23 GRI indicators to include within the body of the report. Data for an additional 16 indicators have
been included for reference.
EC1
Direct economic value generated and distributed, including revenues, operating costs, employee
compensation, donations and other community investments, retained earnings, and payments to
capital providers and governments. Page 55
EC2
Financial implications and other risks and opportunities for the organization's activities due to
climate change.
Page 16
EC6
Policy, practices, and proportion of spending on locally-based suppliers at significant locations of
operation.
Page 29
EN6
Initiatives to provide energy-efficient or renewable energy based products and services, and
reductions in energy requirements as a result of these initiatives.
Page 11-20
EN7
Initiatives to reduce indirect energy consumption and reductions achieved
Page 9
EN8
Total water withdrawal by source
Page 15
EN12
Description of significant impacts of activities, products, and services on biodiversity in protected
areas and areas of high biodiversity value outside protected areas.
Page 21
EN16
Total direct and indirect greenhouse gas emissions by weight
Page 18
EN17
Other relevant indirect greenhouse gas emissions by weight
Page 18
EN18
Initiatives to reduce greenhouse gas emissions and reductions achieved
Page 17-20
EN20
NO, SO, and other significant air emissions by type and weight
Page 11
EN22
Total weight of waste by type and disposal method
Page 12
EN23
Total number and volume of significant spills.
Page 10
EN26
Initiatives to mitigate environmental impacts of products and services, and extent of impact
mitigation
Page 16-21
EN28
Monetary value of significant fines and total number of non-monetary sanctions for noncompliance with environmental laws and regulations
Page 10
HR3
Total hours of employee training on policies and procedures concerning aspects of human rights
that are relevant to operations, including the percentage of employees trained
Page 35-36
LA2
Benefits provided to full-time employees that are not provided to temporary or part-time
employees, by significant location of operation.
Page 40-42
LA6
Percentage of total workforce represented in formal joint management-worker health and safety
committees that help monitor and advise on occupational health and safety programs.
Page 34
LA7
Rates of injury, occupational diseases, lost days, and absenteeism, and total number of workrelated fatalities, by region and by gender
Page 32
LA8
Education, training, counseling prevention, and risk-control programs in place to assist workforce
members, their families, or community members regarding serious diseases
Page 41
LA10
Average hours of training per year per employee by gender, and by employee category
Page 39
LA12
Percentage of employees receiving regular performance and career development reviews, by
gender.
Page 39
PR5
Practices related to customer satisfaction, including results of surveys measuring customer
satisfaction
Page 45-46
Additional GRI 3.1 Indicators:
EC3 | Coverage of the organization’s defined benefit plan obligations
Based on the most recent estimates, Delta’s four defined benefit plans are funded between 46 percent and 68 percent, based on
interest rates used for funding purposes. Delta expects to fully meet its obligations under the defined benefit plans by a combination
of employer contributions and investment return. In 2013, Delta contributed nearly $900 million to its defined benefit plans.
EC4 | Significant financial assistance received from government
The Iron Range Resources Rehabilitation Board in Minnesota agreed in 2013 to provide $5.9 million to Delta to refurbish the Delta
Customer Engagement Center in Chisholm, MN. The State of Minnesota gave a grant of $550,000 to Endeavor Air (formerly
Pinnacle), a Delta wholly owned subsidiary to move its headquarters from MEM to MSP.
EC5 | Range of ratios of standard entry level wage by gender compared to local minimum wage at significant locations of operation
Entry-level pay for published scale positions meets or exceeds all U.S. federal, state and local minimum wage requirements and
complies with the U.S. Equal Pay Act that requires men and women in the same workplace be given equal pay for equal work. Delta
is equally committed to competitive pay in all international locations.
EC7 | Procedures for local hiring and proportion of senior management hired from the local community at locations of significant
operation
90.4% of total management employees are hired locally.
EC9 | Understanding and describing significant indirect economic impacts, including the extent of impacts.
According to ATAG’s Aviation: Benefits beyond borders report, aviation provides 56.6 million jobs worldwide and $2.2 trillion of
global GDP. If aviation were a country, it would be the 19th largest economy in the world. Air transport carries around 35% of world
trade by value and only 0.5% by volume.
EN3 & EN4 | Direct (and indirect) energy consumption by primary energy source
Energy Source
Consumed
Mainline aircraft
Fuel oil
Amount consumed
3,162,801,043
Units
US gallons
Conversion factor
GJ
0.144
455,443,350.19
Subsidiary:
0.00
Delta Private Jets Fuel oil
4,152,539.50
US gallons
0.144
597,965.69
Endeavor
76,022,832
US gallons
0.144
10,947,287.81
Fuel oil
Jet Fuel
Fuel oil
US gallons
0.144
0.00
Diesel
Diesel
US gallons
0.138
0.00
Gasoline
Gasoline
US gallons
0.125
0.00
Natural Gas
Electricity
1,253,305.47
Mmbtu
1.055
1,322,237.27
Owned Facilities
Electricity
370,351,590.28
kilowatt-hour
0.0036
1,333,265.73
Leased Facilities
Electricity
200,064,605.64
kilowatt-hour
0.0036
720,232.58
TOTAL:
470,364,339.26
EN24 | Weight of transported, imported, exported or treated waste deemed hazardous under the terms of the Basel Convention
Annex I, II, III, and VIII, and percentage of transported waste shipped internationally
Zero
HR1 & HR2 | Percentage and total number of significant investment agreements and contracts that include clauses incorporating
human rights concerns, or that have undergone human rights screening, Percentage of significant suppliers, contractors, and other
business partners that have undergone human rights screening, and actions taken
Introduce a clause in contracts with relevant suppliers, stating a common repudiation of commercial sexual exploitation of children.
Supply Chain Management has developed specific language to use in contracts that support the code on a case by case basis. To
date, this has been included in six contracts. In addition, Supply Chain Management will include related language in Delta’s Supplier
Code of Conduct, which was distributed in 2013. Compliance with Delta’s Supplier Code of Conduct will be a requirement for doing
business with Delta.
LA4 | Percentage of employees covered by collective bargaining agreements
Union Participation as % of Total Employees: 16%
LA5 | Minimum notice period(s) regarding operational changes, including whether it is specified in collective agreements
In rare instances where Delta must close a facility or significantly reduce the size of its workforce, affected employees are usually
offered an opportunity for employment in a similar position in another city or through voluntary retirement incentive programs. In
addition, Delta follows the Worker Adjustment and Retraining Notification (WARN) Act requirements for U.S.-based employees
which requires most employers with 100 or more employees to provide notification 60 calendar days in advance of station closings
and significant workforce reductions. Similarly, all individual country legal requirements are adhered to prior to significant operational
changes at Delta’s international stations.
LA9 | Health and safety topics covered in formal agreements with trade unions
Formal domestic and international union agreements also address safety and health at a broad level to ensure compliance with
governmental regulations and standards. Health and safety topics include employee safety committees; participation of employees in
health and safety inspections, audits, and accident investigations; and training and education.
LA11 | Programs for skills management and lifelong learning that support the continued employability of employees and assist them
in managing career endings
To support employees in meeting financial goals for retirement, Delta sponsors both defined benefit and defined contribution 401(k)
plans in the U.S. and in some international locations. Employee resources for the management of career endings include financial
planning resources, EAP retirement counseling and pension and 401(k) investment advice and modeling.
S03| Percentage of employees trained in organization’s anti-corruption policies and procedures
97 percent of Delta’s salaried employees have completed Delta’s Ethics and Compliance course for 2013
S06| Total value of financial and in-kind contributions to political parties, politicians, and related institutions by country
In 2013, DeltaPAC contributed a total of $160,100 to various candidates for federal election campaigns. Corporate political
contributions totaled $57,700 in Georgia and $16,250 in Michigan.
DELTA AIR LINES GHG EMISSIONS INVENTORY SUMMARY TABLE
GHG Emissions
(Metric Tons CO2e)
EMISSIONS SOURCE
2005
2011
2012
2013
Mainline Aircraft
38,158,943
30,867,314
30,359,915
31,159,188
Wholly Owned Subsidiaries Aircraft
3,582,676
872,763
465,057
794,547
Ground Support Equipment
133,194
107,784
94,706
99,441
Stationary Combustion Facilities
55,593
76,404
67,675
78,180
Refrigerants
10,513
4,629
4,820
4,323
Chemicals
3,469
2,974
2,127
1,895
242
208
234
221
Directly Billed
227,169
299,107
251,428
226,029
Leased Facilities
193,249
117,478
117,433
114,411
Regional Partners
3,808,637
6,265,095
6,322,131
5,770,732
Total
46,173,685
38,613,757
37,685,527
38,248,968
Scope 1
Emergency Generators
Scope 2
Scope 3
RECONCILIATION OF GAAP FINANCIAL MEASURES TO NONGAAP FINANCIAL MEASURES
Delta sometimes uses information (“non-GAAP financial measures”) that is derived from the Consolidated Financial Statements,
but that is not presented in accordance with accounting principles generally accepted in the U.S. (“GAAP”). Under the U.S. Securities
and Exchange Commission rules, non-GAAP financial measures may be considered in addition to results prepared in accordance
with GAAP, but should not be considered a substitute for or superior to GAAP results. The tables below show reconciliations of nonGAAP financial measures to the most directly comparable GAAP financial measures.
Net Profit, Operating Income, all excluding special items. Delta excludes special items from net income and other measures because
management believes the exclusion of these items is helpful to investors to evaluate the company’s recurring core operational
performance in the period shown. Therefore, Delta adjusts for these amounts to arrive at more meaningful financial measures.
Special items excluded in the tables below are:
• Mark-to-market adjustments for fuel hedges recorded in periods other than the settlement period (“MTM adjustments”).
MTM adjustments are based on market prices at the end of the reporting period for contracts settling in future periods. Such
market prices are not necessarily indicative of the actual future value of the underlying hedge in the contract settlement period.
Therefore, excluding these adjustments allows investors to better understand and analyze the company’s core operational
performance in the periods shown.
• Restructuring and other items. Because of the variability in restructuring and other items, the exclusion of this item is helpful to
investors to analyze the company’s recurring core operational performance in the period shown.
• Release of tax valuation allowance. Because of the uniqueness of the net gain related to the reversal of the tax valuation
allowance, the exclusion of this gain allows investors to better understand and analyze the company’s core operational
performance in the period shown.
• Loss on extinguishment of debt. Because of the variability in loss on extinguishment of debt, the exclusion of this item is helpful
to investors to analyze the company’s recurring core operational performance in the period shown.
YEAR ENDED DECEMBER 31,
2011
(in millions)
NET INCOME
$
2012
854
$
1,009
2013
$
10,540
Items excluded:
MTM adjustments
26
(27)
(276)
Loss on extinguishment of debt
68
118
-
Restructuring and other items
242
452
424
Release of tax valuation allowance
Net income excluding special items
OPERATING INCOME
(7,989)
$
$
1,190
1,975
$
$
1,552
2,175
$
$
2,699
3,400
Items excluded:
MTM adjustments
Operating income excluding special items
$
26
(27)
(276)
242
452
402
2,243
$
2,600
$
3,526
OPERATING EXPENSES (NON-LABOR OPERATING COSTS)
In addition to the special items described above, Delta excludes salaries and related costs and profit sharing to show non-labor operating
costs because this metric allows investors to better understand and analyze recurring costs of the business other than labor.
2011
(in millions)
OPERATING EXPENSES
$
2012
33,140
$
34,495
2013
$ 34,373
Items excluded:
MTM adjustments
(26)
27
276
(242)
(452)
(402)
Operating expenses excluding special items
$
32,872
$
34,070
$
34,247
Less:
Salaries and related costs
6,894
7,266
7,720
Profit sharing
264
372
506
Non-Labor Operating Costs(1)
$
25,714
$
26,432
$
26,021
Operating expenses excluding special items and employee wages and benefits
(1)
FUEL HEDGE GAINS (LOSSES), EXCLUDING MTM ADJUSTMENTS
Delta excludes MTM adjustments from total fuel hedge gains (losses) because, as described above, excluding these adjustments
allows investors to better understand and analyze Delta’s costs for the periods reported.
2011
(in millions)
FUEL HEDGE GAINS (LOSSES)
$
2012
420
$
(66)
2013
$
444
Items excluded:
MTM adjustments
Fuel hedge gains (losses) excluding MTM adjustments
26
$
446
(27)
$
(93)
(276)
$
168
ADJUSTED NET DEBT:
Delta uses adjusted total debt, including aircraft rent, in addition to long-term adjusted debt and capital leases, to present estimated
financial obligations. Delta reduces adjusted total debt by cash, cash equivalents, and short-term investments, resulting in adjusted
net debt to present the amount of additional assets needed to satisfy the debt. Management believes this metric is helpful to
investors in assessing the company’s overall debt profile.
(in billions)
2013
DEBT AND CAPITAL LEASE OBLIGATIONS
$11.3
Plus: unamortized discount, net from purchase accounting and fresh start
reporting
Adjusted debt and capital lease obligations
.4
$ 11.7
Plus: 7x last twelve months' aircraft rent
1.5
Adjusted total debt
13.2
Less: cash, cash equivalents and short-term investments
(3.8)
ADJUSTED NET DEBT
$9.4
FREE CASH FLOW
Delta presents free cash flow because management believes this metric is helpful to investors to evaluate the company’s ability to
generate cash that is available for use for debt service or general corporate initiatives.
(in billions)
2013
NET CASH PROVIDED BY OPERATING ACTIVITIES (GAAP)
$4.5
Net cash used in investing activities (GAAP)
(2.7)
Adjustment:
SkyMiles used pursuant to advance purchase under AMEX agreement
Total free cash flow
0.3
$2.1
OPERATING CASH FLOW, ADJUSTED
Delta presents net cash provided by operations because management believes adjusting for certain items is helpful to investors to
evaluate the company’s operating activities.
(in billions)
2013
NET CASH PROVIDED BY OPERATING ACTIVITIES (GAAP)
$4.5
Adjustment:
SkyMiles used pursuant to advance purchase under AMEX agreement
0.3
Operating cash flow, adjusted
$4.8

EXPERIENCE MAKES FOR A STRONGER TAILWIND

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