Delta Airlines

Delta Airlines Property, Plant and Equipment: Assignment 1

Amanda Almanza

ACC 304 – Intermediate Accounting II

Professor Christine Errico

Strayer University

August 22, 2015

Delta Airlines Property, Plant and Equipment: Assignment 1

Delta was originally known as Huff Daland Dusters and began in 1924 as a crop dusting service out of Macon, Georgia. In 1925 the headquarters for Huff Daland Dusters moved to Monroe, Louisiana and became the largest privately owned fleet with 18 planes. C.E. Woolman (the founder of Delta Air Lines) and two other partners bought Huff Daland Dusters in 1928. It was at this time the name of the company was changed to Delta Air Services.

Delta began the first passenger service in 1929, which were flights that contained 5 passengers and1 pilot. This service was quickly ended in 1930 due to the lack of mail contracts. Delta resumed passenger service in 1934 when they were able to obtain an air mail route. The name of the company was also changed in 1934 to Delta Air Lines. Delta moved back to Georgia in 1941 and set up their headquarters in Atlanta. Over the next several years Delta merged with several other airlines and expanded flights to include international routes.

Delta celebrated 50 years of service in 1979 and becomes the first airline to board one million passengers in one city (Atlanta) in one month (August). The celebrations continued in 2009 when Delta celebrated 80 years of service for passenger flights. This is also the same year that Delta expanded flights to include non-stop routes between Sydney, Australia and Los Angeles, California. Delta became the only American airlines to offer direct flights to every continent except Antarctica. Delta Airlines continues to grow and expand by investing in product upgrades to improve the customer experience. (Delta News Hub website, 2015)

Delta serves more than 170 million customers each year and operates a fleet of more than 700 aircrafts. As of July 2015 their services are offered to 334 destinations in 64 countries on six continents. The airline has nearly 80,000 employees worldwide. They offer one of the longest and most successful loyalty program known as SkyMiles. This is their frequent flier program that allows members to earn reward miles that can be redeemed for free air travel, cabin upgrades, or items for sale at the SkyMiles Marketplace. Delta not only offers passenger flights, but is also offers air transport services for cargo. They transport approximately 2.4 billion cargo tons-miles each year. (Delta Stat-Facts, website, 2015)

The table below is Delta’s property, plant, and equipment for 2012 and 2013 as reported on their balance sheet in 2012 and 2013.

^Flight and ground equipment under capital leases are accumulated amortization in the amount of $653 million and $482 million at December 31, 2012 and 2011, respectively.