In this episode of Company Breakdowns, host Lorenzo Bartolini sit down with Gary Leff, aviation expert and writer of View from the Wing. Gary shares invaluable insights on Delta Airlines' 100-year transformation from a crop dusting operation to America's premium carrier. The conversation explores how Delta disrupted the traditional airline model through strategic airport slot acquisitions, turning maintenance into a profit center, and building an exceptional loyalty program that generates billions in high-margin revenue. They discuss how Delta created lasting competitive advantages in one of travel's most challenging industries. — SPONSOR: CARTA | NETSUITE | SAFEBASE Carta Carta is offering up to 40% off a new Carta plan, including cap table management, QSBS Attestation, and Carta Total Compensation. This limited-time offer runs through the end of July at ⁠z.carta.com/econ102⁠. Over 41,000 businesses trust NetSuite by Oracle, the #1 cloud ERP, to future-proof their operations. Whether you're earning millions or hundreds of millions, NetSuite empowers you to tackle challenges and seize opportunities. Download the free CFO's guide to AI and machine learning at https://netsuite.com/zen. Ready to save time and close deals faster? Inbound security reviews shouldn’t slow down your team or your sales cycle. Leading companies use SafeBase to eliminate up to 98% of inbound security questionnaires, automate workflows, and accelerate pipeline. Go to safebase.io/podcast RECOMMENDED PODCAST: Check out Modern Relationships, where Erik Torenberg interviews tech power couples and leading thinkers to explore how ambitious people actually make partnerships work. Founders Fund's Delian Asparouhov and researcher Nadia Asparouhova kick off the series with an unfiltered conversation about their relationship evolution. Apple: https://podcasts.apple.com/us/podcast/id1786227593 Spotify: https://open.spotify.com/show/5hJzs0gDg6lRT6r10mdpVg YouTube: https://www.youtube.com/@ModernRelationshipsPod -- LINKS: View from the Wing: https://viewfromthewing.com/ -- X: @lozo_the_bozo (Lorenzo) @garyleff (Gary) @turpentinemedia (Turpentine) -- HIGHLIGHTS: Delta's Strategic Advantages Airport Infrastructure: Secured valuable slots and gates in capacity-constrained airports Made strategic deals with US Airways for LaGuardia slots, trading their DC slots plus cash Methodically built their New York presence through various deals, including taking United's JFK slots Created a moat through infrastructure that competitors can't easily replicate Maintenance Excellence: Transformed maintenance from a cost center to a profit center Does maintenance work for other carriers Uses older aircraft efficiently and maintains them well, saving capital costs Employee Relations: Pays employees better than competitors despite being largely non-union Outsources more than competitors to control costs Brand and Premium Positioning: Successfully sells first-class seats (87% occupied by paying customers including upgrades) Effectively uses data and personalized pricing Has built a strong presence in high-spending markets like New York and LA Loyalty Program and Revenue Diversification SkyMiles generates approximately $7 billion in revenue with 39% operating margins Loyalty program was valued high enough that Delta raised $6.5-10 billion in debt against it during the pandemic Using free inflight internet to drive loyalty program enrollment and credit card marketing International Strategy Owns stakes in airlines worldwide: Virgin Atlantic (49%), Korean Air, Air France, China Eastern Strategic global presence provides growth opportunities beyond the mature US market Future Outlook Potential disruption from new aircraft technologies (electric, vertical takeoff) Possibility of new revenue streams like inflight gambling Success will depend largely on the regulatory environment