Trusting Delta

From Delta Airline’s Website, Delta’s Force for Global Good

“Delta is firmly committed to our environment, safety, and social responsibility. We demonstrate these commitments in hundreds of ways throughout the world on a daily basis as we partner with our employees, vendors, customers, civic, and non-profit organizations to make a difference in the communities where we live and work. Many of our programs are award-winning and industry-leading. We don’t do them for the awards. We do them because they’re the right thing to do.”

Richard H. Anderson
Chief Executive Officer, Delta Airlines

From the Atlanta Business News, July 27, 2011

Airlines Spoil Fliers’ Unplanned Tax Holiday

Airlines have complained for years that taxes added to ticket prices drive up the cost of travel. But when those tax collections stopped last weekend and airlines had a rare chance to give fliers a break, most opted to keep prices the same and pocket the difference.

For Atlanta-based Delta Air Lines, that amounts to be $4 million to $5 million a day in extra revenue, the company said Wednesday.

A Congressional stalemate led to a partial shutdown of the Federal Aviation Administration Saturday, preventing the agency from collecting about $200 million a week in ticket taxes.

Delta and other major carriers then increased base fares to cover the lapsed taxes, saying they need the extra money to cover high fuel costs. The result is that travelers are paying roughly the same total price as before, instead of getting a discount from the unplanned tax holiday.

“It just seems like it was the perfect chance for the airlines to throw a bone in consumer satisfaction,” said FareCompare.com CEO Rick Seaney…

…Delta’s official statement on the matter: “Given the high cost of jet fuel, Delta has been competitive with other airlines that increased their base fares following the expiration of funding for the Federal Aviation Administration to adjust for the taxes no longer being collected.”

0 replies
  1. Barbara Kimmel
    Barbara Kimmel says:

    I took a quick look at our industry data for the airlines. US Airways and Southwest are the industry leaders in trustworthy business behavior. The rest are mediocre at best. And guess who has one of the lowest corporate integrity scores.

    Reply
  2. Charlie (Green)
    Charlie (Green) says:

    Interesting, Barbara.

    So is Delta’s official statement, which translates as:

    “As long as the music is playing, you’ve got to get up and dance,”

    or, more prosaically,

    “Everyone else did it too.”

    Reply
  3. James A. Boyd
    James A. Boyd says:

    Charlie, the mind-blowing, maddening, tear-your-hair-out reality is that Delta likely sees absolutely no inconsistency, conflict or trust busting behavior between their web-site pronouncement and their action with respect to the tax fiasco.

    Methinks this knid of disconnect is widespread and therein lies many of our problems.

    Peace, Jim.

    Reply
  4. Robert Clarkin
    Robert Clarkin says:

    It is hard to swallow Delta’s new branding as seen in their spring 2011 “Action/Reaction” 60 second TV advertisement. Delta purports that in return for customer loyalty, they (Delta) needs to give back to the customer, and that the end consumer should expect it. Clearly, in not passing on the tax rebates to the end customer, Delta Airlines is not walking the talk.

    Reply

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