Analysis Of Delta Air Lines Capacity And Congestion

Delta Air Lines Capacity and Congestion

The air transportation system is one of the most vital means of transportation in the world

and it is still on the rise. General aviation’s role in the air transportation system provides a

pivotal economic impact globally whether utilized for extensive travel plans or the transport of

goods and services. However, weather has had an uncooperative impact on Delta Air Lines

capacity and congestion. Moreover, the United States Department of Transportation states that

volume of traffic is an even bigger problem (Brueckner, 2015). The major components of the air

transportation system include airports, air traffic control systems, aircraft, and airlines,

additionally; changes in each of these

Delta utilizes a system

known as fuel hedging for long-term strategies, which is a tool for protecting the company from

volatile and potentially rising fuel costs. Even though a drop in fuel prices reduce air fare pricing

and drives consumer air travel, Delta’s financial status still suffers. However, as a short-term

strategy, Delta would channel savings toward the company’s debt, facility improvements,

passenger comfort, fleet overhaul, or even to its shareholders.

Delta’s Global Alliance

Once a crop dusting airline in the 1920s, Delta has now become a unified airline giant

that has continued its expansion from past airline alliances such as Western Airlines, Northwest,

Pan Am, and so forth (Stellin, 2011). By joining these domestic and global alliances, Delta has

secured more international capacity than any of its competitors. In fact, Delta’s unparalleled

global network covers six continents while offering routes to more than 325 destinations. For

passengers, alliances offer simpler ticketing and smoother connections on intercontinental trips,

as well as the chance to earn and redeem frequent-flier miles on other member carriers