Delta Case Study Essay

Executive SummaryDelta ship duct has a long recital whose roots begin at the stratum 1924.This air lane has taken to hold let on wizard of the largest air passages serving the joined States of America and in any case major(ip)ity of the humanness through its international routes. The aim of this paper is to see the memorial of the air duct together with its financial position with concentration on the non-homogeneous strategies the attach to has implemented to r individually where it is right now. The paper will excessively impart in various suggestions to the air passage pedigree to avail it to grow further. Delta respiratory tracts began in the grade 1924 just now during that sequence it was known as miff Daland Dusters. This was the kickoff aerial do dusting which had its headquarters in Georgia. The following twelvemonth, the club moved its headquarters to Louisiana. The directors of the company were B.R Coad and Collett Woolman.Huff Daland went on its first international route and that was to begin its function in Peru which brought in enough m maviny and enlarge in get power. The year 1928 gave birth to what is known as Delta aureolelines today. Furthermore, the year 1930 came with a major puff to the airline.Delta failed to secure a commercial airmail contract and thitherfore suffered major losses which forced the airline to suspend rider service of process. As time went by, the year 1934 seemed to be the year for Delta Airlines as they secured a low-bid contract for the in the buff Route 33 airmail service between Dallas and Charleston, South Carolina, via battle of Atlanta .The airline in like manner resumed passenger services that year. The following eld were precise successful periods for Delta airlines as it managed to spread its wings to various states around the United States and it also managed to purchase airlines much(prenominal) as Chicago airlines and Southern Air Airlines. As the jet era began, Delt a Airlines added jetliners to modernize their fleet and fleet in the 1960s, following the purchase of the Douglas 8 that entered service in 1959. The same year also provided a brisk image for Delta as it redesigned its logoto what is symbolise today. In 1970, Delta became an all jet airliner.The airline continued buying out its competitors and this time it was North East airline that was purchased in the year 1972. The nifty reign of Delta Airlines reached some opposite milest matchless in the year 1975 when the launched the first airline called Delta Air Express which guaranteed air express service with spirited precedence and guaranteed cargo services. As the deregulation act came into place, Delta launched its first transatlantic fledge from Atlanta to London under the leadership of the new CEO David Garrett which followed a nonher expansion to Frankfurt the following year. In 1979, Delta celebrated its 50th year of service with flyings to Frankfurt and it became the fi rst airline to carte du jour unitary jillion passengers in one city in one month. In summing up to the above achievements, the 1980s brought mixed feelings at the company. With the reading of ready reckoners, Delta managed to begin computer based reservation systems and launch its first frequent flyer program. merely the airline suffered losses in the year 1982.Employees then took payroll deductions to aid about $30 million to purchase the companys first Boeing 767 which was named The spirit of Delta in 1982.Between the year of 1984-1987, Delta structured with several regionals and partnered with some to increase its services to Hawaii. It also became the fourth largest bearer in the U.S and fifth in the world with its services to Portland, Oregon and Tokyo in 1987 under the new chairman and CEO Ronald Allen. The airline expanded its trading trading operations to Asia in 1988. As Delta Airlines continued soar melloweder, the year 1991 was no several(predicate). The airl ine purchased all of Pan-Ams Trans-Atlantic routes and shuttles hence making it the largest acquisition of flights in airline history and also making Delta a global carrier. Apart from making profits and expanding its routes, Delta Airlines also fulfilled its social and cooperate responsibility by painting one of its aircrafts with the Olympic flag.It was then named the official airline of the Olympics 1995 Olympics games .It also received an award for the take up major carrier for long and short haul flights. The airline also took a major step which till today has changed the history of the airline persistence and that was making all its flights NON-SMOKING. Furthermore, between the long time 1996-1999 had various achievements for Delta such as existence named the global airline of the year and the best managed airline. It also installed automatic defibrillators on board aircrafts and purchased modern aircraftssuch as Boeing 777.To meet the demand of low toll motive powerers, Delta announced its low cost airline Delta Express with services from Orlando FL. In 1997, Delta was the first airline to board more than 100 million passengers in a year.The year twentieth century started with the airline reporting losses for the first time in 6 years during the year 2001.This was because of the attacks on the world trade philia which forced the g everyplacenment to shut down the US airspace for 2 days. The following fewer years saw a lot of changes in terms of commercialiseing techniques, new check in systems and also few code sharing with the regional carriers to enhance the airlines services. But the year 2005 started being a year that the airline would face what can be termed as the most difficult phase in their entire history. Delta filed chapter 11 for shakeup under the bankruptcy code.The airline later managed to expand it routes as archaean as November 2005 back to Latin America and Caribbean routes. The airline has since then managed to grow rapidly implementing various new systems of check in or purchasing just the tickets. With modern fleets, international alliance and great service, Delta has gone to become one of the best airlines in the world and has won major awards in the twentieth century such as best airline website, Best airline lounge and Best frequent Flyer program.History of Airline industriousnessThe airline manufacturing first started the transportation of passengers in October of 1925. There was an benefit in planes with pressurization in 1949. In September of 1953, the first jet passenger plane gets introduced. The FAA was first established in marvellous of 1958. In February of 1974, the first large body planes with multiple aisle were introduced. A little over two years later, the first supersonic incite was introduced in August of 1976 with the Concorde Tu-144.History of Delta AirlinesDelta has close to 90 years of history that didnt endlessly involve passenger travel. In 1924, a crop dusting company c alled The Huff Daland Dusters was founded. Four years later, Huff Daland Dusters merged with Delta and kept the name of Delta. In 1941, Delta headquarters moves from Monroe to Atlanta. Delta gets its first stock traded on the impertinent York Stock switch over in 1957. Deltas first merge occurs in 1972 when it merged with atomic number 10 airlines this merge made them a major carrier in New York and Boston. This is alsothe year that Delta started operating with the Boeing 727. In 1981, Delta Airlines launches its Frequent Flyer Program. anformer(a)(prenominal) merge happens a few years later in 1987 when Delta merged with Western Airlines.After this merge, Delta became the fourth largest U.S carrier and the fifth largest in the world. They also introduced some international travel in the same year. After years of pay and job cuts ascribable to the major decline in airline travel after the September 11th attack, in September of 2005 Delta Airlines files for bankruptcy. In Decembe r of 2006, Delta files for a five year reorganization plan that would allow Delta to emerge from bankruptcy as a stand-alone company which wasnt approved until January of 2007. In 2008, Delta merged with Northwest Airlines which made Delta the worlds largest airline.Corporate StrategyDelta Airlines corporate scheme puts major focus on its staff achieving its objectives. The company carries out this strategy by having the top counselling committed to making sure its employees argon satisficed (Delta Air Lines Inc. 5). The company has organize this business culture because they have realized that by having a well-provided sound force, their clients the needs and expectations will be handled in an utile room (Nancy 3). As a direct turn up of to this corporate culture equal by Delta, managers and employees have established solid professional relationships, and it is because of the implementation of this strategy that Deltas staff has been described as being an incredible work force (selective information monitor lizard 6).Also, Delta airline is able to provide their customers with high feature services due to their strategy of focusing on their employees satis featureion. Delta Airlines has provided its employees with good working(a) terms and conditions, and it has also motivated its employees to provide high quality services by offering them financial awards, delta merchandise, gift cards, award banquets, and promotions (Delta Air Lines Inc. 3). stock Level StrategyThe business level strategy of Delta Airlines places emphasis on customer service and/or service delivery. Delta Airlines is committed to its customers (Delta Air Lines Inc. 7), which manner that its core business focus is to meet and satisfy their customers needs and expectations. wizard of the most effective methods to achieving a competitive advantage is the companyscommitment to its customers (Nancy 1). Their business strategy has modifyd Delta Airlines to provide its customers wit h the lowest fares possible in spite of appearance the grocery (Data monitor 5).The airlines fear ratings are clearly displayed at ticket counters and on their website, which has permitted Delta to provide their customers with adequate travel data in dictate for them to be able to easily make reservations and inquiries at their own convenience. Also, communicating effectively with their customers has helped Deltas relationship with the market. The Airline rapidly communicates travel news, as well as diversions, delays, and cancelations notifications to its customers in order to ensure that they are not disappointed, and can make more informed decisions.Deltas grind away synopsisStrengthsAcquisition of NWAWorlds largest mega carrier & flight profit pacific & Atlantic Ocean flight routesEmployeesSkyTeam & SkyMiles allianceAirport model betray & HistoryOpportunitiesReduce operational cost & clevernessStreamline operations & supply chainNew value for money strategiesEnhance the c ustomer experienceCustomer retention initiativesInvest in new technologiesrenegociate lease & labor agreementsWeaknessesLow on time rating in operation(p) CostSusceptibility to service disruptionsTechnological dependence for operations preeminenceMerger consolidationThreatsAlternativesCompetitionIncreased regulationMarket surroundingsEconomyFuel costCrashes/TerrorismStrengths and WeaknessesSince the establishment of Delta Airlines, it can be considered an airline that has stayed in business despite its ups and downs. Although Delta has experienced many obstacles passim its nearly 90 years of history, it continues to have many accomplishments that many other airlines do not have.One of the major points to Delta Airlines success is its ability to help more than 160 million travelers get to places they want to go to each year as stated on the Delta Airlines website. Delta is assembled around many of its strengths one of those currently being the largest airline in the world today co nsort to the index on Delta Airlines website. One of the strong points in being one of the worlds largest carriers today is having numerous hubs in major cities in the United States. Atlanta and Minneapolis are two of the biggest hubs of Delta Airline some other cities include Cincinnati, Detroit, New York, and Memphis (Mutzabaugh, 2013). Having as many as 567 ecumenical destinations in over 100 distinct countries allows an U.S. airline company to expand to different countries globally. Another strength Delta has is their superior customer service abilities. Their customer service is what helps Delta to be what it is today.The passenger service, a successful history of flight, and flying to different continents around the globe leads to Delta having one of the highest gross revenues in the airline industry. In 2010 Delta earned profits of more than $590 million and $1 meg in 2012, this is a massive improvement from the $1.2 billion beating it had in 2009. As the each year went by revenue rose about 4% between 2011 and 2012, accomplishing a remarkable high of $36.7 billion (Hoovers Inc., 2013). Delta Airlines has been recognized to be the global air travelmarkets best mega carrier, and this is proven by the fact that Delta ope pass judgment over 5000 flights on a daily basis (Delta Air Lines Inc. 8). twain their corporate and business strategies are highly innovative, and as a result of these strategies, and with the aid of their employees, that they have been able to provide high quality air travel services and become a major player in the market.The companys high quality and efficient air travel services also demonstrate its business strengths. Delta earned $22, 687 of revenue in 2008 due to their acquisition of the North West Airlines operations, which compared to the previous year amounted to a growth of 18.5%. (Delta Air Lines Inc. 6). It is safe to say that no airline is without flaws and there are many flunkes deep down Delta Airlines itself. Being the best in the business doesnt mean that you dont youre your own drawbacks. on with being a top brand in the airline industry means that you have competitors. One of Deltas main competitors in the airline industry is United Airlines which is rated the worlds most admired airline on Fortune magazines 2012 airline industry list, the industry leading loyalty program that provides more opportunities to earn and redeem miles worldwide, and also the worlds most comprehensive global route network stated on Uniteds website.Deltas Airlines has significant weakness which pose as challenges to their success, such as the 2000 job cuts and 20% capacity reduction they have undergone can defiantly be characterized as weaknesses. However, due to the 2009 economic grapples such the cutbacks were necessary in-order to reducing the high costs associated with operations (Data monitor 4). And compared to its main competitors, Deltas on-time ratings for are comparatively low. Its burning(prenominal) to note that Delta Airlines services have not achieved comprehensive differentiation (Data monitor 9). Another major issue that could affect the performance of Delta Airlines in the market is the possibility of employee strikes.External EnvironmentCurrently within the United States, the Maintenance, have-to doe with and Overhaul (MRO) market is exceptionally strong, and it is predicted that within the next three years the Maintenance, Repair and Overhaul market will increase over 10% (Nancy 3). Such evidence validates the fact that there indeed are opportunities within the external environment which Delta Airlines could useto their benefit by decrease the costs associated with repairing and maintaining its serving fleet of aircraft. Furthermore, due to an increase in the use of online merchandise in the air travel market, air traveler are a good deal more aware of the numerous air travel services and prices being offered by the many travel companies and airliners that exist in to days world. A clear example is how advancements in technology can be a major influencing factor is illustrated in the fact that customers of air travel services in todays world have the power to conduct a real time, reliable, and efficient comparisons of all the different rates being offered, and the ability to simply and conveniently schedule a flight reservation online (Nancy 4).This is true about both(prenominal) the air travel market here in The United States and abroad. Indeed, the current external environment offers Delta Airlines the prospect to achieve a competitive advantage, and become a leader in the air travel market by executing of its customer cerebrate strategy. On a Global scale, the airline industry has witnessed significant development and growth of which is attributed to advances in air travel technology, and alternative fuel sources. This worldwide growth will give Delta Airlines the chance to become a leader in the global travel industry by implementation of their effective business strategies (Nancy 1). Although flue cost and air travel technological advancements are factors that have created new opportunity for Delta Airlines nevertheless, the ever rising costs fuel, and the high level competition in the air travel market and are major threats to the success of the airlines.RecommendationsDelta has claimed many breaks through from the company establishment date. explore and development over the duration of time has given Delta market movement in the industry over the years along with a deep rooted foundation. Technology enhancements would complement Deltas competitive position this action would let excitement to the airline industry that would bring investors to the table. Broadening the profits, Delta is becoming a leader in the market with something truly innovative to offer customers.Deltas forward motion statically is doing well, shown in last years third Qtr. ending with a surplus of 56.67% currently outpacing its historica l five yearpace. Delta currently is pursuance to reduce the loan rate on a pricey $1.34 billion loan from outstanding lenders currently. At this rate, Delta should have enough capital to make believe out and achieve something great to autonomously boast in the industry in the near future.ConclusionDelta Airlines has established itself as a leading carrier and a great company. In order to accommodate specific areas which would enable Delta to increase their efficiency and profitability they have modernized their business strategy. Managers at the Delta airlines consider the motivation, training, and general well fear of their staff to be of high importance. Clear improvement in services demanded by air travelers such as the addition of Wi-Fi service and investing in matters such as the renovation of cabin is sure to be increase customer rejoicing and boost demand for Deltas services by customers. Delta expanded in both the regional and international markets by merging with Northwe st airlines. The numerous economic markets that can be penetrated and/or expanded present Opportunities for Delta airlines. Things such as staggering economy, government uncertainty, and major weather changes present threats to Delta. Delta marketing method and business strategy are the reason it is one of the best carriers globally.ReferencesData monitor. Delta Air Lines, Inc. Delta Air Lines, Inc. SWOT Analysis (2011) 1-11 Delta Air Lines Inc. Delta Air Lines, Inc. SWOT Analysis. Delta Air Lines, Inc. SWOT Analysis (2013) 1-9 Delta, P. K. (2011, FEBRUARY). Delta history. Retrieved from http//news.delta.com/index.php?s=18&cat=39 Mark Wilkinson, retrieved on November 29, 2013 from http//www.timetoast.com/timelines/3379 Mutzabaugh, Ben. (2013, October 7). Retaliation? United adds flights to Delta hubs. Retrieved from http//www.usatoday.com/story/todayinthesky/2013/10/07/retaliation-united-adds-flights-to-delta-hubs/2935925/ Nancy, Gondo. allow Delta Air Lines Top Profit Forecasts O nce Again? Investors problem Daily 12 Nov. 2013 1-5 Hoovers Inc. (2013). Delta Air Lines, Inc. Financial Performance. Retrieved from http//subscriber.hoovers.com/H/company360/fulldescription.html?companyId=10448000000000