The Air Show Is 'durable and differentiated' enough for Delta?
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Dec 5, 2024 Delta Airlines is looking cool and confident as it targets younger, affluent customers while experimenting with AI for pricing. Discussions reveal strategic shifts in premium cabin offerings and a cautious approach to new aircraft. The rivalry with United Airlines raises questions about Delta's competitive edge and the risk of complacency. With an emphasis on streamlined operations and loyalty programs, the team ponders whether Delta’s confidence is well-placed or if a touch of humility is needed as competition heats up.
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Hauenstein's Journey
- Glenn Hauenstein, Delta's CCO, is considered one of the shrewdest commercial minds.
- He honed his skills at Alitalia before achieving success at Delta.
Cabin Segmentation
- Delta is further segmenting cabins into "good, better, best" offerings.
- Basic Economy won't be labeled "good," but rather "bare bones."
Long-Term Premium Strategy
- Delta invests in younger, less affluent customers, anticipating future premium purchases.
- The strategy involves engaging them with SkyMiles and credit cards.