...Affairs This portion of the paper will include key information about Delta Air Lines, Inc. (Delta): (a) history; (b) culture; (c) important leaders over the years; (d) current products and service offerings: (e) target markets; and (f) methods of product and service delivery. History This section describes the history of Delta. The company was founded in Macon, Georgia, in 1924, as the world’s first crop-dusting service, Huff-Daland Dusters. The company moved to Monroe, Louisiana, in 1925. In 1928, field manager C. E. Woolman and two partners purchased the service and renamed it Delta Air Service after the Mississippi Delta region it served. Delta was the first international mail and passenger route on the west coast of South America. Delta operated its first passenger flights over route stretching from Dallas, Texas to Jackson, Mississippi, via Shreveport and Monroe, Louisiana. Also, Delta was awarded a US Postal Service contract in 1934 to fly from Fort Worth to Charleston via Atlanta (Hoover’s, 2011). In 1941, Delta relocated to Atlanta. Woolman became the president in 1945 and he managed the company until his death in 1966 (Delta, 2011). Delta offered its first night service in 1935, using the Stinson Model A; the first Delta aircraft with two pilots. Douglas DC-2 and DC-3 service was introduced and the introduction of flight attendants, called “stewardesses,” added to flight crews. Delta contributed to the war effort by modifying 1,000 plus aircraft, over-hauling...
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...------------------------------------------------- Competing through alliances in the airline industry: The AIR FRANCE- KLM/DELTA AIR LINES JOINT VENTURE In less than twenty years, the global industry has gone through tremendous change. Several airlines had gone out of business that had been on top of the industry for years. One of the remarkable changes had been airline alliances. The case focuses on the airline industry and how airlines are forming alliances and joint ventures. It then introduces the partner firms Air France KLM , and Delta . Air France KLM had over 25 collaborative agreements with other carriers and was a founding member of Skyteam, one of the leading airline groups. Air France KLM and Delta Airlines formed revenue and cost sharing joint ventures that include all transatlantic routes of the two airlines. The alliance formed sales over 12 billion euros, and accounted for about 30% of all North Atlantic passenger business. The case also provides information on joint ventures, and how alliances are used strategically to enhance revenues and reduce cost. The case also discuss how collaboration can be structured and governed to achieve outcomes, and how strategic decisions by one alliance partner can affect the stability of the alliance. The issue of the case is if whether Air France KLM should reconsider their alliance with Delta Airlines, due to some of the independent decisions made within the alliance. Some of the external factors that affected the company...
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...------------------------------------------------- [Document title] MGT-432 November 26, 2013 Executive Summary Delta airline has a long history whose roots begin at the year 1924.This airline has grown to become one of the largest airlines serving the United States of America and also majority of the world through its international routes. The aim of this paper is to see the history of the airline together with its financial position with concentration on the various strategies the company has implemented to reach where it is right now. The paper will also include various suggestions to the airline to help it to grow further. Delta airlines began in the year 1924 but during that time it was known as Huff Daland Dusters. This was the first aerial crop dusting which had its headquarters in Georgia. The following year, the company 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 services in Peru which brought in enough money and increase in purchasing power. The year 1928 gave birth to what is known as Delta Airlines today. Furthermore, the year 1930 came with a major setback to the airline. Delta failed to secure a commercial airmail contract and therefore suffered major losses which forced the airline to suspend passenger service. As time went by, the year 1934 seemed to be the year for Delta Airlines as they secured a low-bid contract for the new Route 33 airmail service between...
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...Strategic Plan of Delta Airlines Abstract Delta Air Lines, Inc. (Delta) is an air carrier based in Atlanta, Georgia that provides scheduled air transportation for passengers and cargo throughout the United States and around the world. The Company offered customers service to destinations with Delta and Delta Connection carrier service to 321 destinations in 58 countries in January 2008. To Latin America and the Caribbean, Delta offered more than 500 weekly flights to 63 destinations in January 2008. It is a founding member of SkyTeam, a global airline alliance that provides customers with worldwide destinations, flights and services. Through the late 1970’s and 1980’s, Delta Air Lines worked to establish its name as the premier U.S. airline for customer service. The foundation of Delta’s customer service was based on a company with a culture of “southern hospitality” and employees who went above and beyond the call of duty. The company’s human resource strategy helped build the skills, motivation and opportunities for employees to deliver great customer service, and that allowed Delta to attract business travelers who paid premium prices for travel (Wright, 2008). Delta’s success shows just how important HR strategy can be, especially in its impact on company performance (Wright, 2008). The information published on Delta’s offers a great deal of information about the company, culture, and the benefits to jobseekers. Furthermore, the website provides an abundance...
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...(Cite p. 258). By writing and sending out the internal memorandum the CEO Richard Anderson displayed exceptional management communication skills, because the information was sent to the right stakeholders which were the employees of Delta Air lines, this communication or information was not meant for other stakeholders such as the customers of Delta or the employees of Northwest Airlines. This communication was also sent out at the right time, a day before the media got the news ensuring that the employees do not hear the news of the final merger agreement from an outside media source. The internal memorandum sent out within Delta Air lines gave the employees an idea of the change going on in the company and how they would be affected. In communicating change, the reasons for the change, and the benefits of the change should be stated. These areas were all communicated through the internal memorandum. Reading the internal memorandum one can see that the voice of the memo tries to connect with the readers. The style, tone, voice, and word choices Delta CEO Richard Anderson used in the memo effectively communicated the change. The memo listed out what has been changed hierarchically, who the new CEO and CFO would be due to the merger of both Delta and Northwest Airlines and what has been changed, talking about the physical office location, and also how this change would benefit his employees and the employees of Northwest airlines (Cite)...
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...1 (i) Delta Air Lines need to update the residual value and depreciation of their aircraft over time in order to calculate the life of the aircraft. The calculation requires estimation and assumptions such as the long-term of usage, maintenance cost, residual value and economic conditions which need constant review. Technological changes in the industry are one of the reasons why Delta Air Lines decided to extend the useful lives of their flight equipment. Technological advances such as changing engines from pistons to jet engines allow aircrafts to function more efficiently with less wear and tear on the airframes and for longer period of times. With consistently updated with latest technology, aircraft are better maintained and can simply last much longer. In addition, Delta Air Lines decision to change in depreciation since 1986 had a positive impact on the company’s financial statements. Depreciation is a non-cash item which does not affect cash flows or revenue. However, it does have an effect on the net income. By stretching out depreciation, Delta will see a decrease in depreciation expense resulting in higher net income. This is crucial for not only for Delta Air Lines, but to all airlines companies as well as intense competition and deregulation in the industry were being pressured to show more profits and results. The disadvantage to decreasing in depreciation is taxes. With decreased depreciation and increased net income, Delta Air Lines’ income taxes...
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...Delta is an airline company which offers different facility to the customer like passenger travels cargo services. The company maintain lowest price thought USA and around the world. Delta Airline Strengths • Delta Airline has third biggest carrier, which are a. It establish its name b. The company has best reputation in the market. c. The company very well known name in the market. • Delta achieve three DOT’s stop at a time in the past three years, which means that it facilitate the customer in the field of baggage, handling, and satisfy the customer in a very well manner. • Now a day’s Delta has announced one of the cheapest airline services in East named as Song. The cost of which is almost 8 cent per seat mile. • Delta Air line is now joining with major air airline companies around the world known as Sky Team. • Due to the joining with Sky Team the company cost on different services become much lesser as they share different cargo and passenger services with each other. • Delta Airline has developed one of the leading airport design which include the design of its lobby and increase in its service technology, it also improve its customer service which helps the employees to help and deliver the customer and response quickly. Delta Airlines Weaknesses • One of the weak points of Delta airline is the cost of their labor although the company provides easy and cheap service but still the company cost of the employs is very high. The...
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...BACKGROUND Delta Air Lines is a major United States airline headquartered in Atlanta, Georgia, in the United States. The airline's hub at Hartsfield-Jackson Atlanta International Airport is the world's busiest airport by passenger traffic (88 million passengers per year) and number of landings and takeoffs. Delta is the 3rd largest and the oldest airline still operating in the United States. Between 2001 and 2005, Delta airlines lost $10 billion. The firm’s cash assets had significantly fallen short of its debt obligation, which stood at $14 billion. Standard and Poor’s (S&P) placed Delta’s debt ratings on “credit-watch” with negative implications, citing critical liquidity problems. The leaders of Delta Air Lines’ pilot union had alerted their members that the firm might have to file for bankruptcy protection under chapter 11 of the American Bankruptcy Code. In a bit to increase the liquidity, Delta sold its subsidiary (Atlantic Southwest Airlines) to SkyWest Airline for $425 million in August 2005. At the time of the sale, Delta was also experiencing a major operational crisis. As Delta was struggling to pull together its restructuring plan to survive, many analysts believed that the airline was under an increasing risk of bankruptcy. However, Delta continue to grow throughout mergers and acquisitions as below: - In 1972, it merged with Northeast Airlines - In 1984, Delta expanded its reach in the domestic U.S market with its Delta Connection Program. Under this program...
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...the external environment for the following four airlines: AirTran, Delta, WestJet and Air Canada. Introduction The drive for lower operational costs and increased efficiency has forced many companies of the world to turn towards mergers and acquisitions. However, even then when companies realize that cost cuts cannot be born out of “corporate marriages”. Instead a new trend in strategic management emerged to achieve similar objectives - forming alliances. Among the industries, alliances and networking are dominant in the airlines industries with North America securing the leadership position followed by European carriers. Both the Canadian and the US airlines industries account for a market approximately $4.5 billion and $5.5 billion respectively (Factsheet from WestJet Website 2005), offering widespread opportunities for airlines to exploit and explore. Yet one observes many airlines have been filing for bankruptcy protection; others constrained for profit margins; and there are some that are enjoying greatly the benefits of these vast markets. There are a host of reasons macro and micro factors responsible for the diversified operational outcomes of airlines. In the following discussion the researcher offers an overview of the North American airline industries through a macro and micro environmental analysis of the four of the leading airlines in the US and Canada - namely AirTran, Delta, WestJet and Air Canada with the hope to identify the key strategic areas that companies...
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...CASE STUDY: Delta Airlines Inc. by Benjamin Godman Delta Air Lines is a major American airline and one of the world’s largest air carriers by traffic serving over 330 destinations in over 60 countries on six continents. Originally starting out operating crop dusters and delivery mail in Louisiana, Delta now utilizes over 700 aircraft and subsequent support activities like maintenance and operations. Delta airlines services over 165 million customers worldwide every year by averaging over 5000 flights daily. Delta Air Lines is now the oldest airline operating in the United States and is the result of multitude of airline mergers over the past 80 years that included Pan American World Airways and Western Airlines just to name a few. Its most recent merger with Northwest Airlines in 2010 was its largest in its history and in 2013 finished with $5.7 billion in unrestricted liquidity, generated $4.5 billion in cash from operating activities, reduced debt by $1.4 billion and funded capital expenditures of $2.6 billion and returned $350 million to shareholders. Delta’s 2013 pre-tax profits were up 147% in comparison with 2012. In recent years, Delta was a founding member of the Sky Team Alliance, created Delta One which is an Elite business cabin, introduced flatbed seats for international travel, Delta Comfort+ for increased comfort in the main cabin seating and other amenities to ensure its competitiveness with other airlines such as American Airlines Group Inc., Southwest...
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...Problem 5.16 – Delta Air Lines, Inc. Computing and Interpreting Risk and Bankruptcy Prediction Ratios for a Firm That Declared Bankruptcy. a. (1) Current Ratio: 2000: $3,205/$5,245 = 0.61 2001: $3,567/$6,403 = 0.56 2002: $3,902/$6,455 = 0.60 2003: $4,550/$6,157 = 0.74 2004: $3,606/$5,941 = 0.61 (2) Operating Cash Flow to Current Liabilities Ratio: 2001: $236/0.5($5,245 + $6,403) = 0.041 2002: $225/0.5($6,403 + $6,455) = 0.035 2003: $142/0.5($6,455 + $6,157) = 0.023 2004: $(1,123)/0.5($6,157 + $5,941) = (0.186) (3) Liabilities to Assets Ratio: 2000: $16,354/$21,931 = 0.746 2001: $19,581/$23,605 = 0.830 2002: $23,563/$24,720 = 0.953 2003: $26,323/$25,939 = 1.015 2004: $27,320/$21,801 = 1.253 (4) Long-Term Debt to Long-Term Capital Ratio: 2000: $5,797/($5,797 + $5,577) = 0.510 2001: $7,781/($7,781 + $4,024) = 0.659 2002: $9,576/($9,576 + $1,157) = 0.892 2003: $11,040/($11,040 – $384) = 1.036 2004: $12,507/($12,507 – $5,519) = 1.790 (5) Operating Cash Flow to Total Liabilities Ratio: 2001: $236/0.5($16,354 + $19,581) = 0.013 2002: $225/0.5($19,581 + $23,563) = 0.010 2003: $142/0.5($23,563 + $26,323) = 0.006 2004: $(1,123)/0.5($26,323 + $27,320) = (0.042) (6) Interest Coverage Ratio: 2000: $1,829/$380 = 4.8 2001 to 2004: The interest coverage ratio is negative and, therefore, is not covered. b. Altman’s Z-Score 2000 Working Capital/Assets: 1.2[($3,205 – $5,245)/$21,931] ..................... (0.112) Retained Earnings/Assets: 1.4($4,176/$21,931)....................................
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...Delta Airlines inc. History of company Delta Air Lines, Inc. incorporated on March 16, 1967, provides scheduled air transportation for passengers and cargo throughout the United States and around the world. The Company's operates through segments, including Airline Segment and Refinery Segment. The Company's route network is cantered around a system of hub, international gateway and key airports that the Company operates in Amsterdam, Atlanta, Boston, Detroit, London-Heathrow, Los Angeles, Minneapolis-St. Paul, New York-LaGuardia, New York-JFK, Paris-Charles de Gaulle, Salt Lake City, Seattle and Tokyo-Narita. Each of these operations includes flights that gather and distribute traffic from markets in the geographic region surrounding the hub or gateway to domestic and international cities, and other hubs or gateways. The Company also offers cargo services, aircraft maintenance, repair and overhaul (MRO), staffing services for third parties, vacation wholesale operations and private jet operations. In addition to providing maintenance and engineering support for fleet of over 900 aircraft, its MRO operation, known as Delta TechOps, serves aviation and airline users around the world. Its Delta Global Services provides services to third parties, including staffing services, aviation solutions, professional security and training services. The Company's tickets are sold through various distribution channels including digital channels such as delta.com and mobile, telephone...
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...Delta airline and Air France KLM established a joint venture that includes revenue sharing, cost sharing and intercontinental routes between two airlines. This joint venture was successful in early days and its sales were more than 12 billion Euros in 2011. As author said the purpose of this case is discussion in class room rather than examining its benefit and loss so this case examined the airline industry. Especially this case discussed the joint venture and Alliances that occurred in past between the different airlines. In this case Delta airlines and Air France KLM discussed about its joint venture, policies, procedures and operation. But Air France KLM and Delta airlines faced some issues and conflicts over the time. Detail of case is discussed as follows. This case was written by Pierre Dosage and Ulrich Washer of John Molson Schools of business in Concordia University. Airlines industry was tremendously change in last 24 years and especially during 1990 to 2010 many alliances in airline industry was occurred. A first airline alliance was established in 1930 between pan American Grace and Latin America. That alliance was simple and limited but with the passage of time alliances become complex and diversified and many airlines alliances occurred afterwards. Alliances occurred in different categorize according to the need and relation of airlines with each other's. First alliance category was code sharing agreements whereas airlines allowed each other's passengers on corresponding...
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... where are the airlines to make up for costs besides higher airfares? Lets take a look into the industry and see what one company does to be extremely innovative and what another does to stay traditional, for lack of a better word. I have chosen two companies in the airline industry that I feel are complete opposites in more ways than one in their management, financial, and marketing structures. These companies have been long-time competitors in the commercial airline industry for nearly five decades competing for best quality, comfort, and convenience. Company Overviews: Southwest Airlines (LUV) and Delta Airlines (DAL) have been competitors in the same industry for over fifty years now. Both companies have been enormously successful in their own ways, but as many of us know, the world of commercial travel has seen its share of obstacles lately. The ATA (Air Transport Association of America) reported that domestic airline industry saw an 18 percent decline in revenues in fiscal year 2009 exceeding those from fiscal year 2001 by nearly four percent. This was due to a nearly six percent decline in passenger travel accompanied by a 13 percent plunge in the average price that it cost to fly one mile. Never in the airline industry’s 100-year history has it seen such a sharp decline in business. The challenge of restructuring the...
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...Introduction Delta Air Lines Inc. is an international airline based in the United States and headquartered in Atlanta, Georgia. This company was formed in 1924 and grows into a major airline that serves more than 160 million customers each year. With its unsurpassed global network, Delta and Delta Connection carriers offer service to more than 350 destinations in nearly seventy countries on six continents. Delta employs 80,000 employees worldwide and operates a mainline fleet of more than 700 aircrafts (“About Delta”). This paper will discuss three recent marketing and operation activities at Delta. First, it will describe the new investment in the expansion of the eBoarding paperless check-in option for customers with smartphones. Second, it will explain the launch of Wi-Fi on Delta’s regional jets. Third, it will introduce the new Economy Comfort cabin of Delta’s aircraft. Paperless eBoarding Since 2007, Delta has been investing money into the technology called eBoarding that allows passengers to obtain an electronic boarding pass on their preferred smart mobile devices. Besides being able to receive their boarding passes on their cellphones, passengers can check in, access security, and board their flight by simply using the eBoarding option. Delta tested this technology for four years. Until the beginning of 2011, the availability of eBoarding pass option has expanded to 69 worldwide locations. Continental Airlines was actually the first airline offering this paperless...
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