Delta Air Lines, Inc. is a major airline that was founded in 1929. Delta runs well over 5,000 flights every day that travel domestically as well as internationally. In 2008, American Airlines became the first in the industry to charge for checked bags. Other airlines followed suit with Delta being one of them. Delta Airlines charges $25 for the first check bag and $35 for the second bag. This is the going price if your bags are under 51 pounds. Expect to pay upwards of $90 if you happen to go over by a couple of pounds. Go over 71 pounds? You will be looking at a $175 charge….for one checked bag. With these prices customers are expecting their bags to meet them at their destination. Intact and on time. Why is that we are failing these …show more content…
Well according to Deepti Mishra, and Alok Mishra in the Department of Computer Engineering at Atilim University, Ankara, Turkey, the way to improve is through technology. In a paper written the show that by using RFID ( Radio Frequency Identification ) Delta and others can greatly reduce the lost luggage issue. As of right now most airlines are apprehensive in utilizing this innovative approach due to cost and return if any by the set up and maintenance of such a system. "In 2005, the industry lost in the region of $2.5 billion on mishandled baggage, When you take into account the costs involved in reuniting the delayed baggage with its owner, which, happily, is the case over 99% of the time. This year we will reach the two billion passenger landmark, which on current trends will translate into 30 million pieces of mishandled baggage" [6]. The IATA surveyed airlines on their understanding of the reasons for and proportions of bags being mishandled. Among the main reasons, the airlines identified two areas where RFID can fix …show more content…
• The writing option opens up the potential for new applications: the data stored on the bag tags can be updated at any time for additional security.” (Improving Baggage tracking, security and Customer…Deepti and Alok Mishra). Adding this system in place would be the logical choice in improving Delta’s bottom line as well as customer service throughout their company. As for the issue of employee theft and mistreatment of customer luggage the Delta human resource department needs to stop hiring contractors and outside laborers and be more vigilant in their background checks to ensure the hiring of quality personnel. The y also need to institute a better training program as well as incentive programs such as a bonus for every flight without a missing or damaged bag. With these 2 processes in place Delta will not only increase their revenue but see a larger market share relatively fast. Neither project will be easy but for the sake of the customer and progress of the company it is vital to improve the process of ending the lost luggage issue. Delta can with these new policies Market themselves as being the leader in the industry thus differentiating their
UPS started delivering packages by air as early as 1929 with United Airlines operating ford Tri-motors. UPS’s first airline venture started as a 50/50 partnership with DHL in a company called International Parcel Express (IPX). IPX hired a group of former Transamerica employees to gain the air carrier certificate. With 60 aircraft in the fleet of IPX by 1987, it was becoming difficult to manage with all the different contract carriers and aircraft. UPS announced it would be taking over all air operations in 1988 and using the IPX certificate as the basis for UPS airlines. UPS Airlines started on January 28th 1988. Ten months after receiving the operating certificate from the FAA, UPS Airlines had grown to an operation of 94 aircraft. UPS airline was the fastest growing airline in FAA history.
The airline industry not only transports passengers across the country and world but it also moves cargo from location to location. The largest segment for the airlines is general commercial passengers and business travelers. In 2004, there were 15 major airlines with 12 of those being mainly passenger carriers, the remaining three being cargo carriers. In addition to the large airlines (Delta, United, American, Southwest, Northwest), there are numerous low-cost regional carriers that have tapped into the larger carriers’ customer base. These smaller companies generally fly from smaller airports and serve a smaller amount of destination cities. Calling them a no-frills air carrier would not be far from the truth. Their goal is to move customers f...
Montealgre, Ramiro, H. J. Nelson, Carin I. Knoop, and Lynda M. Applegate. BAE Automated Systems (A): Denver International Airport Baggage Handling System. Rep. no. 9-396-311. Boston, MA: Harvard Business School, 1996. Print.
Delta Air Lines operates in a competitive industry. Amongst its competitors, its two largest were American Airlines and United. To survive in the industry it was necessary to employ and maintain technologically efficient and cutting edge systems. However, Delta systems of operations were mainly paper based; they still used pneumatic tubes to move information and they made little use of the internet. As a result, the company lacked a competitive edge. The technology it had was based on various departments independently purchasing the technology they needed and hiring their own IT staff. In 1996, Delta was still known for its expensive airfares, poor service, limited leg room on flights and use of out-dated inefficient processing systems.
Many elements of Delta Airlines are described in detail, within this paper. There is a breakdown of the external and internal factors, using external and internal analysis. Porter’s Five forces are used to create the external analysis, and the key factors for Delta are power of buyers, and rivalry. Delta’s competitive advantages are identified as customer service, sustainability, brand image, strong strategic alliances, and corporate travel. Delta’s main issues are the low expansion in international markets, continuous changing of incentive program, and glitches within technology. Delta should expand more into the Chinese and African markets in order to gain market share within the airline industry.
As airline industry is a competitive marketplace, the airline companies use new technologies to improve their efficiency and decrease the overhead costs, including ‘advanced aircraft engine technology, IT solutions, and mobile technology’ (Cederholm 2014). The technology changes including technology improvement, new innovation and disruptive technology. The disruptive technology need to meet the characteristics of ‘simplicity, convenience, accessibility and affordability’ (Christensen 1995). The technology changes would bring both opportunities and threats to airline companies. Since Labour cost and fuel costs occupy 50% of most airlines operating cost (Groot 2014). Therefore, if new technologies could be disruptive in the two aspects, there will be important changes to current airline
Delta Airlines has been a vibrant company in the airline industry, with great success over the years. Delta airlines started as a crops dusting company to serving more than 572 destinations, in 65 countries on six continents (Allan, H., David. H. ,2012). Delta airline moved its headquarters from Monroe, Louisiana to the city of Atlanta, Georgia. The great management strategies have portrayed from time to time to be fruitful even in the verge of a recession. With these consistency in delivery of services, it is clear that the company is out to outdo its competitors and turn out to be the greatest airline in the world.
Delta (DAL) is one of the oldest and leading firms operating in international arena, its business involves air transportation and cargo throughout the United States and around the world. The company has its headquartered in Atlanta, Georgia. The global route network serves the majority domestic and international market. The airline serves over 180 million customers in 64 countries with industry leading customer support and operational excellence. By ensuring positive economic performance. Delta also has the highest profit share in air transportation industry by taking approximately 57% of the entire industry profits. K. Yamanouchi (2017) stated that Delta’s IOS also has the second highest market share in the transportation OS sector.
RFID data, for example, part and serial numbers, assembly dates and support history are put away on the tags and catches which help in maintenance of equipment. RFID technology as high value for asset management and inventory systems. A barcode is a visual representation of data that is checked and utilized for data. Bar code is simple to control equipment and tool inventory. In facilities supervisors can use barcodes to link work orders, purchase orders, spare parts and equipment which can be further used to track and collect costs.
The main threats to the industry over the next five years are the rise in price of oil, legislation, the TSA, and labor costs. Each of these threats effect the scheduled air transportation industry not only endangers Delta Airlines but the entire industry. As the price of labor increases for ground operations and pilots this creates a burden on the industry by causing them to spend more to satisfy their labor requirements. The price of fuel increasing leads to the price of fuel to increase, which not only affects a single airline but every airline. With each time that the crude oil price rises the prices associated with the costs of refining the jet fuel as well as transporting it. These costs are distributed to each airline as they use this resource to transport passengers. As new politicians are elected to Congress and new administrators take charge of the FAA new regulations regarding this industry. These regulations affect everything from mergers to the airspace that the airlines operate in as well as what hubs and airports each airline operates out of. These factors are not issues that the industry faces, the TSA, the Transportation Security Administration, creates an unnecessary burden for the passengers attempting to travel from one location to another. The TSA inspections required before a passenger is allowed to board their respective flights allows time for each passenger to become frustrated with the amount of time they have to allot for inspection as well as the invasion of their privacy.
The report highlights in detail the role and the importance of Supply Chain Management (SCM) in an organization with respect to Radio Frequency Identification (RFID) and its growing impact in the industry and talks about the changing SCM trends keeping RFID as the focal point.
Several large scale, interrelated conditions have affected the airline industry over the past several years in such a manner that every carrier has had to respond in order to remain viable and competitive.
Through a vast worldwide route system Delta has flown over 117 million passengers, more than any other airline in the world. Delta mainline, domestic and international service, Delta Express, Delta Shuttle, Delta Connection®, Delta Sky Team and Worldwide Partners operate 6,400 flights each day to over 450 cities in 98 countries. Not only is Delta a beast in the market it wields its power quite intelligently. Along with this momentous market share, Delta has enormous control over some of the nations key gateways. Delta controls 72 percent of the air traffic at Salt Lake Utah.
RFID, or radio frequency identification, is the new system that is replacing the use of barcodes. RFID tags allow users to more quickly obtain information from the object that the RFID tag identifies (Evans, 2012, p. 190). RFID tags are more helpful and will eventually replace barcodes entirely because they allow the user to scan the object without physically touching or optically reading anything on it. Rather than reading an identification number that is then looked up in a database, it is possible to gather information directly from the tag (Bonsor).
The use of hard cased luggage makes it harder for the security to plant bullets in the bags. Wrapping the bag in plastic also makes it harder to plant bullets. Also, when security is checking your bags, make sure that there are witnesses, lawyers, or an official supervisor present at the scene. This reduces the likelihood of a security personnel trying to scam you. The fourth way is to defend your right to remain silent.