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Industry analysis of delta airlines
Delta air lines case study
Delta airline case study
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Delta Air Lines Inc. is a company that provides scheduled air transportation for passengers as well as cargo shipments. With gateway airports in places like Amsterdam, Atlanta, Detroit, New York, Paris, Salt Lake City, Seattle, Tokyo, and many others, Delta Air Lines is a major airline that reaches all across the world and offers service to 333 destinations in 64 countries on six continents. Delta Air Lines has a number of 79,714 full time employees, and serves nearly 165 million customers each year. With a fleet of more than 700 aircraft, Delta Air Lines was named the 2014 Airline of the Year by Air Transport World magazine this year and was named to Fortune magazine’s 50 Most Admired Companies. Delta Air Line’s top executives include …show more content…
Founded in Macon, Ga., it was known as the first commercial agricultural flying company in existence. In 1925, the company expanded all over America and owned the biggest privately owned fleet of planes in the world with their 18 planes. In 1927, the company expanded to South America to Peru and was the first international mail and passenger route on the west coast of South America. In 1929, C. E. Woolman, the principal founder of Delta Air Lines, bought Huff Daland Dusters and renamed it Delta Air Service. Soon thereafter in 1929, Delta made their first passenger flights. Delta then contributed to the war effort in 1942, modifying over 1,000 airplanes, training pilots and mechanics. In 1945, Delta officially became Delta Air Lines under the new president C. E. Woolman. Delta then received the National Safety Award for more than one-half billion passenger miles without a fatality. In the 1950’s Delta started some international routes to the Caribbean and Caracas. In the 1960’s, Delta started the first jet service to transport passengers faster and more efficiently and in 1966 the founder and president of the company, C.E. Woolman died and was succeeded by Charles H. …show more content…
The stock was very good from February to March of 2016 jumping about $10 in that time period. August to September 2015 was when this stock experienced its biggest drop in the past year in which it went down nearly $8. Delta offered four different dividends: two of six cents in February and May, and two of nine cents in August and November. In 2015, Delta was able to make airline passenger counts grow in Raleigh-Durham International Airport (RDU), as well as in The Springfield-Branson National Airport. Delta was able to offer more flights and even had bigger plans in 2015 to accommodate a larger amount of people per flight: Led by strong growth at the Delta Air Lines counter, Raleigh-Durham International Airport saw its airline passenger count grow to 9.5 million in 2014 – 3.8 percent more than in 2013. (Siceloff, 1/15/15). Due to the rising passenger count in RDU, Delta and the other regional airlines were able to claim 29.6 percent share of the airport’s total business, thus the company greatly gained from this exchange. In addition to the rising consumer count in RDU, Springfield had one of its best years in 2015 as well as their best year since the economic recession: “Nearly one-million passengers traveled through the Springfield airport in 2015-- making it a record year. Over 70,000 more passengers used the Springfield airport last year than in 2014.”
In 1928 he purchased the Mid-Continent Aircraft Company and reorganized it as the Spartan Aircraft Company. Located near Tulsa Municipal Airport in Tulsa, Oklahoma, Spartan Aircraft Company operated until 1961 manufacturing aircrafts, aircraft components, and recreational vehicle trailers. The Spartan aircrafts were known for their stable and sturdy construction. The company hit hard times in the 1930s because of the great depression, but that didn’t stop the company from flourishing. In the 1930s and 1940s the company started manufacturing several models of aircrafts including the Spartan Executive. Most notable for its sleek, low-wing cabin designed, this aircraft was designed as a corporate aircraft. The Spartan Executive would be an augury for business aircrafts for later
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.
Today, Delta is stronger than ever and is one of the biggest airlines in the world. More changes are to come. It is understood that Delta will be here to stay.
As Frontier approached its 10th year of operation, Frontier officials realized an image shift was in order. The airline had established a reputation for friendly and reliable service, and reasonable airfares, mainly appealing to leisure travelers. But they reali...
...been. The merger was facing antitrust review and on top of that the Northwest unionized pilots could not reach an agreement. In Oct 2008, an agreement was reached and all pilots from both sides received pay raises and Delta acquired Northwest Airlines for 2.8 billion dollars. This was considered one of the largest deals in the industry and made Delta number one in the world in terms of destinations (Anonymous, 2009).
Southwest Airlines strategy of focusing on short haul passenger and providing rates as low as one third of their competitors, they have seen tremendous growth in the last decade. Market share for top city pairs on Southwest's schedule has reached 80% to 85%. Maintaining the largest fleet of 737's in the world and utilizing point-to-point versus the hub-and-spoke method of connection philosophy allowed Southwest to provide their service to more people at a lower cost. By putting the employee first, Southwest has found the key to success in the airline business. A happy worker is a more productive one as well as a better service provider. Southwest will continue to reserve their growth in the future by entering select markets only after careful market research.
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.
The Boeing Company originally started out as the Pacific Aero Products Co., which was founded on July 15, 1916. The name was changed about a year later to The Boeing Airplane Company. The Boeing Company stayed relatively small until World War I when they were selected by Navy officials to produce an order for 50 model C planes for the war efforts. The company continued to prosper and by the late 1950s, Boeing President William Allen knew that the company had the scientists, the experience and the facilities to lead the company into uncharted territories. He was right, Boeing has emerged as the leading aerospace company in the world today.
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.
AAL: Description//History: Starting with American Airlines Group Inc. or AAL, this company runs in the airline industry, as you can tell by the name. Originally known as American Airlines but recently changed its name, adding in “group”, as of December 2013. The airline has traveled to over 54 countries, operating on 6,700 flights a day to more than 300 destinations, holding a daily number of 500k passengers! The airline was founded in 1930 where its headquarter lies near the city of Dallas. (AAL Profile | American Airlines Group, Inc. Stock - Yahoo! Finance) Although the airline initially was placed in New York as a head quarter, where it first started its stock exchange on June 10th of 1939 but that soon transitioned to Texas. AAL became one of the biggest airlines in the world creating over 900,000 jobs worldwide, contributing to almost 100 billion dollars to the United States and other international economies. They also backed up 1,400 organizations around the world! The making of the company was back on April 15th 1926 when a fresh pilot named Charles A. Lindbergh sent off a pack of mail on a small biplane traveling with it to St. Louis. Lindbergh was already a chief pilot of the second airline company to do the actions of sending airmail. This airline being Robertson Aircraft Corporation of Missouri and is recognized as one of the airlines that emerged with AAL. The alliance began in 1929 and in 1930 more companies emerged together and formed what is now American Airlines! (American Airlines Group) (HISTORY OF AMR CORPORATION AND AMERICAN AIRLINES)
When analyzing Delta, you do not have to search very far before quite possibly one its strongest attribute rears its head. Based on calendar 2000 data, Delta is the largest U.S. airline in terms of aircraft departures and passengers enplaned, and third largest as measured by operating revenues and revenue passenger miles flown. Delta is the leading U.S. airline in the transatlantic, offering the most daily flight departures, serving the largest number of nonstop markets and carrying more passengers than any other U.S. airline. Delta Air Lines transports more passengers worldwide than any other airline. 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.
Northwest Airlines is one of the pioneers in the airline transportation industry and is ranked at the fourth largest air carrier in the United States today. The success of the carrier depends on the quality and reliability of the service at a reasonable price. Close competitors force Northwest to innovate their services by increasing efficiency. This essay will try to examine different perspectives in the services needed to successfully complete the company’s objectives. The analysis will explain historical and financial perspectives that may give a better understanding of the current market trend of the organization.
This was a sad day for everyone in both the immediate and extended “Delta family,” a day perhaps as sad in its own way as the death of Mr. Woolman almost 40 years before. The sadness mixes with fear by employees and retirees, their families, stockholders, customers, vendors, taxpayers, governments and all others among the tens of thousands impacted by the bankruptcy. Leadership decisions by Delta’s Board and CEO’s over a long period of years laid the foundation for Delta to be in a position where the factors would have a large enough impact to result in bankruptcy. By promoting Ron Allen to CEO, primarily because he had moved up the chairs in the company through Beeb’s efforts, the Board showed their lack of awareness of the need for a strategist to deal with the fundamental changes taking place in the airline industry. Then the Board brought in Leo Mullin and gave him free rein for 6 ½ years to turn a cash rich company into one in such poor shape financially that his successor had to turn to expensive sources of money to keep the company
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.
United Airlines is one of the largest airlines in the United States and worldwide. Also, it is ranked as the oldest commercial airline that was founded by Walter Varney. United Airlines started as an Air Mail Service and then extended its services to be an Air Carrier. In 1927, William Boeing started his own airline, Boeing Air Transport, and started buying any other air mail companies, which included the Varney’s Air Mail Company. After a while, Boeing started manufacturing aircraft and parts, which allowed him to extend his company to a bigger organization. Also, within Boeing’s company, he bought several airports to expand his organization. In 1929, Boeing’s company has changed its name to be United Aircraft and Transport Corp. (UATC).