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Computer industry

Delta's Headquarters in Jeopardy: Atlanta's Economic Vitality at Risk

Strategic Insights

— 2 min read

Atlanta, as a city built on transportation, has thrived since the last half-century thanks to its airport, Hartsfield-Jackson International Airport, which is the world's busiest airport, thanks in large part to Delta Air Lines' presence. Delta has been the dominant carrier in Atlanta, and its headquarters has been a major factor in the city's economic growth, with companies strategically selecting metro Atlanta as a gateway to the United States due to its direct air connections to cities across the country and around the world.

The news that US Airways is making a run at Atlanta's own Delta Air Lines is causing anxiety over the possibility that the metro area will lose another major corporate headquarters, Georgia-Pacific, BellSouth, Scientific Atlanta, Atlanta's Internet Security Systems, and two U.S. auto plants have all been affected in the last 12 months. Losing Delta's headquarters would be yet another blow to the city, as it would shake the very core of Atlanta's foundation - a transportation hub to the nation and the world.

Key Takeaways:

  • Delta's headquarters in Atlanta has been a major factor in the city's economic growth, with companies strategically selecting metro Atlanta as a gateway to the United States due to its direct air connections to cities across the country and around the world.
  • The news that US Airways is making a run at Atlanta's own Delta Air Lines is causing anxiety over the possibility that the metro area will lose another major corporate headquarters.
  • Atlanta has experienced a devastating string of losses in the last 12 months, including Georgia-Pacific, BellSouth, Scientific Atlanta, Atlanta's Internet Security Systems, and two U.S. auto plants.
  • Losing Delta's headquarters would be yet another blow to the city, as it would shake the very core of Atlanta's foundation - a transportation hub to the nation and the world.
  • According to George Berry, a former general manager of Hartsfield-Jackson, the airport would be detrimental to the city if Delta's headquarters were to move.
  • The people who ultimately will decide Delta's fate may not fully appreciate the interdependent relationship that exists between Delta and Atlanta.
  • Sam Williams, president of the Metro Atlanta Chamber of Commerce, is hopeful that Delta's base will stay in Atlanta.
  • Phil Humann, CEO of SunTrust, believes that consolidation in the airline industry is inevitable but is unsure if a Delta-US Airways combination will materialize.
  • Mark O'Connell, president of Atlanta's United Way, highlights the importance of a company's headquarters in supporting community institutions and nonprofits.
  • The location of a company's headquarters holds significant implications for a community.

Statistics:

  • Delta's United Way contribution to this year's campaign is expected to be about $900,000.
  • Hartsfield-Jackson International Airport is the world's busiest airport.
  • 12 months have passed since the start of the devastating string of losses in Atlanta's economy.
  • 5 major companies (Georgia-Pacific, BellSouth, Scientific Atlanta, Atlanta's Internet Security Systems, and two U.S. auto plants) have been affected in the last 12 months.
  • 1 company (Delta Air Lines) has the potential to be acquired by another.

Sources:

  • "Oh no. Not another one." by Maria Saporta, The Atlanta Journal-Constitution, November 16, 2006.
  • "Georgia Pacific bought by Koch Industries." by Staff, The Atlanta Journal-Constitution, 2005.
  • "BellSouth to be acquired by AT&T." by Staff, The Atlanta Journal-Constitution, January 2006.
  • "Cisco Systems agrees to buy Scientific-Atlanta." by Staff, The Atlanta Journal-Constitution, July 2005.
  • "IBM to buy ISS." by Staff, The Atlanta Journal-Constitution, July 2006.

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