...United Airlines vs. Delta Airlines Ushma S. Patel 3/31/2013 Ushma821@gmail.com Work Cited 1. Introduction 3 2. United Airlines vs Delta Airlines 4 3. The Four-Frame Model 8 4. SWOT Analysis- United Airlines 12 5. SWOT Analysis- Delta Airlines 14 6. Analysis 15 7. Recommedations 16 8. Work Cited 17 INTRODUCTION In evaluating two companies who have had to restructure their business models to evolve to changing times I choose United Airlines and Delta Airlines. Both companies filled for bankruptcy in the early 2000’s and since then have nursed their company back to health and to becoming the industries leaders for airlines. I choose these two airlines because I frequently use them to travel. My family are also huge travelers and I spend a lot of time looking for the best deals for them. United Airlines filed for bankruptcy in 2002 and would become the longest case in the United States lasting until 2006. The airline was able to get their reorganization plan approved by the United States government by restructuring their management plan. In the restructure they also changed how their bonus plan was organized for successful executives. They also had to evaluate their employee’s efficiency while on the clock. They were able to reduce their workforce from 100,000 employees to half of that. Finally the airline had to revaluate the routes they were taking and then see which ones...
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...Human Resource Management Delta Case Study: Improving Delta’s Profit Margin Written by Filiz McNamara, Ogochukwu Udekwe and Vicki Troftgruben February 21, 2011 Table of Contents Page Introduction 3 External Environment 3 Internal Environment 18 Systems and Stakeholder Analysis 32 Conclusion 34 Problem Identification 36 Generation and Evaluation of Alternatives 37 Recommendation 38 Decision Implementation 39 References 40 Introduction Delta Airlines was founded by C.E. Woolman, an agriculture extension agent (Anthony, Kacmar, & Perrewe, 2010). C.E Woolman was not a banker, venture capitalist or war pilot, as many of the competing airlines were. He didn’t have the aggressive military style that many of the other airline founders had. What C.E. Woolman instilled within the employees at all levels of the organization is that people matter and should be treated fairly and equitably. This philosophy led Delta Airlines to be the leader in customer service from the company’s inception through the many mergers over the years. Through the difficult financial times when other airlines were laying off employees and filing for bankruptcy, Delta continued to pay their people well and keep them employed. There was an exception during the Ronald Allen CEO era of 1987 thru 1997. Human relations took a significant down turn during his tenure as CEO, especially during 1993 and 1994, but Delta decided to part ways with Allen and began repairing...
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...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 Dallas and Charleston, South Carolina, via Atlanta .The airline also resumed...
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...History of Song Llc Airlines Esequiel Garcia Dr. David Lowe ASCI 254 Monday, July 30, 2012 Table of Contents Abstract ………………………………………………………………………………………...…3 History of Huff Daland Duster Company………………………………………………...……….4 Collett Everman Woolman………………………………………………………………..………4 Air Mail Contract.....................................................................................................................…...4 Peruvian Airways merger with Pan American Grace Airways…………………………..……….4 Delta Air Service first passenger flight………………………………………………………..….5 The Air Mail Act of 1934……………………………………………………………..…………..5 The Civil Aeronautics Board (CAB) determine routes………………………………..………….5 The Airline Deregulation Act of 1978……………………………………………………..……..6 Song Airlines…………………………………………………………………………………..….8 Song Airlines Aircraft fleet………………………………………………………………………..9 Song Airlines Marketing Strategy…………………………………………………………...…..10 Delta Airlines Bankrupt……………………………………………………………………..…...13 Delta Airlines Disband Song Airlines…………………………………………………………....13 Delta Airlines merges Song Airlines fleet with Delta……………………………………..….....14 Conclusion of Song Airlines…………………………………………………………………..…15 Figure 1-A Delta SWOT Analysis…………………………………………………………....…16 Figure 2-A Song SWOT Analysis…………………………………………………………….....17 References……………………………………………………………………………….………18 Abstract In the competitive business environment it is imperative for any organization to ensure that its knowledge of the industry...
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...Global Competitive Strategy Executive Brief: Delta Airlines Executive Summary: After years of instability, decreasing profit margins, and volatile costs, the airline industry is experiencing stabilization and profitability. Though low-cost carriers, such as Southwest and Jetblue, were able to succeed during rough economic times, Delta should not launch a new stand-alone discount airline to directly compete within this market. As shown in Exhibit 1, despite recent changes in the industry - including consolidation, bankruptcy filings, and a forecasted positive economic outlook - intense competition and supplier power remain extremely high for the industry. Based on the following analysis, Delta is in direct competition with other legacy airlines such as United/Continental and American Airlines for the higher end market juxtaposed to its less direct competition with low-cost carriers, e.g. Southwest, which fall into a separate strategic group targeting a different market and consumer. As a result of Delta’s entrenched strategy of providing many routes and amenities for higher ticket prices, the company’s core competencies, resources, and activities do not align with the discount airline market and, therefore, the company should not launch a new low-cost carrier airline. Company and Competitor Analysis: Delta’s core competencies are to provide multiple domestic and international routes to travelers, customer service and luxury, technological innovation, and access...
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...pages 374-382 on Data envelopment Analysis (DEA). • Select 5 airlines from the database (can be major, regional, international, domestic). • Select at least 5 inputs and 5 outputs for these airlines for the last five years(these criteria should clearly be justified in your report). • Adopt DEA – clearly explaining your methodology. • Rank these airlines for each of the latest 5 years– state which ones are efficient and which ones are not. • Are these rankings stable over the five years? How the rankings are being shifted? • For those that are not efficient what is the source of inefficiencies according to the input/output criteria that you have selected. • Allowable time 5 weeks. Deliverables: A report addressing all the above + LP files as attachments (pasted in your document). Grading criteria: DEA Research Paper Name: |Criteria |Total Grade |Your Grade | |Selection of inputs/outputs justify their |15 | | |selections | | | |Adopt DEA – clearly explaining your |15 | | |methodology | | | |Rank the airlines/ analyses |10 ...
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...Case Analysis Study Approach (CASA) (Read the case a couple of times) Describe the Following for this Case Study- 1. Industry & Market: Delta is in the airline industry. It is a major economic force, both in terms of its own operations and its impacts on related industries such as aircraft manufacturing and tourism. There are few industries that create the amount and intensity of attention that airlines receive. Delta is the world’s largest airline in terms of both fleet size and scheduled passenger traffic. Delta’s major competitors are Southwest Airlines and United Airlines. 2. External Environment: (Factors beyond the control of the firm that influence its choice of direction and action, organizational structure, and internal processes) STEP Analysis: Social- Social factors and travel practices of individuals have extensive effects on the airline industry. There are individuals from a number of income classes and the airlines have to classify these people and ought to give them what they need. Technological- as clients’ wants develop in the future and there are more technological expectations the airline industry will have to be ready to meet their clients’ wants. Delta must keep up with competition and their technological advances such as online ticketing, booking, updating flight information, baggage check-in and handling of customer complaints all on the internet. Economical- Consumers tend to reduce travel if personal economic conditions are suboptimal, forcing...
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...measure, and mange relationships with each of those customers individually. A forward thinking company must focus on the preserving and increasing the value of that customer base. Organizations like airlines must mange their customer relationships effectively in order to remain competitive. In this case analysis, I will identify and explain key external factors that affect the passenger airline industry. This analysis will then turn towards explaining what the major airline market segments are, by applying segmentation, targeting, and positioning. Finally at the end of this analysis I will contrast two specific airlines United and Delta Airlines and describe each of the company’s target market and positioning by giving some examples of how these strategies are implemented for each company. Key External Factors Companies, like the airline industry, are forced to alter their business models, pricing, revenue, and cost structures to suit their customers’ changing needs in different economic conditions. The airline industry has experienced several modifications in terms of marketing and strategic planning in recent years due to an increase in airline competitiveness. (Gursoy, D., Chen, M-H, & Kim, H. J. 2005.) There are several key external factors that affect the airline industry, which can be broken down into four main categories. The four categories are political and legal factors, economic factors, demographic factors and finally technological and environmental factors...
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...Delta Airlines and the Trainer Refinery American Public University Strategic Management 05 July 2015 By Jon Kaercher Abstract The airline industry is a highly competitive service industry that operates on thin profit margins the airlines have to be flexible and adjust quickly to changes in customer’s preferences, increased fuel costs, and changes in the economy that can have a direct impact on profitability. The airlines look for solutions such as adding services, offering discounted ticket pricing and receiving subsides from the government to ensure they remain solvent This requires each airline constantly monitor its business strategy to ensure that it exploits every opportunity to provide their customers with the best possible flying experience. 1) What drive the basic economies of the airline industry? The refining industry. The airline industry operates as a service industry in which it provides the transportation of its customers and their personal belonging from one destination to another for a fee. To provide this service the airlines require a large amount of capital to purchase and maintain expensive equipment and facilities. Their cash flow is generated from profits and the depreciation of their airplanes, this cash flow is used to repay debts and buy new aircraft. The airline industry is very labor intensive because it’s in the service industry and its customers require personal attention, this can be very expensive for the airline. Over one...
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...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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...ORGANIZATIONAL INFORMATION SYSTEMS Case Analysis – Tale of Two Airlines PROBLEM STATEMENT Neglect and inconsistency in applying standard operational strategies and procedures can make a significant difference in meeting the expectations of passengers, affects passenger loyalty and have potential consequences on the ability of an airline to retain existing customers and attract new ones. In the information technology age “technology is only a small enabling piece of a total service concept.” How can an airline cause information technology, operations strategy, management control, empowered/unempowered work force, and service management to come together to produce customer satisfaction and long term customer loyalty?. In analysing the case, let’s examine some of the issues that were encountered during his travel, the reasons for these issues and what could have been done differently to provide a hassle free travel experience. It is a fair expectation and assumption that when a comparison is made with quality services and the impact of the use of information technology in 1985 versus 1995 there should be a distinct difference due to the era and the stages of advancement in information technology. It is therefore assumed that whatever service was provided in the 1980’s would have been improved ten years later. This leads us to examine: * Was the assumption made by Professor McPherson to think that it was possible for the network between airlines to make it feasible for him to...
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...techniques provide a comparative analysis of leadership and 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...
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...Political-Legal Environment: Delta Airlines Delta Air lines is not immune to the political and legal structures that exist both domestically and globally. There are many factors that affect the political and legal structures for Delta in their domestic environment of the United States and also in the global environment of Europe. Teresa Cederholm in her article on MarketRealist.com states “The airline industry is widely impacted by regulations and restrictions related to international trade, tax policy, and competition” (2014) She goes on to elaborate further on issues that impact the airline industry such as “war, terrorism, and the outbreak of diseases” (2014). All of these issues require the government to set in and set different rules for airlines on how they operate both at home and abroad. There have been many factors that have recently affected the political and legal environment for Delta Airlines. One of the biggest events of our generation that affected the airline industry was the terrorist attacks of September 11th. After September 11th, the United States government many security regulations in place to make air travel safer for both the passengers and the crew of the air plane. With many of the restrictions in place, Delta Air Lines faced many problems financially. According to Cederholm, the revenue for all the United States airlines dropped to $107.1 billion in 2002 from the $130.2 billion in 2000 (2014). Cederholm goes on to state that “the global airline industry recorded...
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...Delta Song Case Executive Summary U.S. Airlines face many issues today that ultimately will lower profits. Heightened Security in airports, less people willing to fly and a slumping economy have put the airline industry at a disadvantage. Delta Airlines has reported recently a $2 billon dollar second quarter loss. Delta has been losing ground to smaller airlines that fly the same routes that supply Delta with approximately 70% of its revenue. Delta Airlines will attempt to become the first major carrier to successfully launch a long term, low cost competitor. In the past year alone, low-cost carriers such as Jet Blue have claimed over 80% of the market share in New York to Florida flights. The new airline will be call Delta Song, and will cost $75 million The Delta Song Concept will use only one type of plane, the Boeing 757, that will be outfitted with leather seats, interactive monitors that will allow users to watch pay per view movies, play interactive games and online shopping. Song flights will fly between selected cities. Song planes will feature faster turnaround times of 50 minutes between landing and take off. Flight time is expected to be approximately 13 hours a day, which is 23% higher than the Delta main line. The goal of Delta Song is to compete with smaller airlines that will push Delta away from chapter 11 and return to profitability and future success. Analysis Delta will need to shift ticket sales operations away from...
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...INTEGRATED CASE STUDY SECOND SEMESTER FEBRUARY 2015/2016 (A152) GROUP: B (5) WRITTEN REPORT CASE ANALYSIS CASE : Depreciation at Delta Air Lines: The “Fresh Start” PREPARED FOR: PROF. DR. MOHAMAD ALI B ABDUL HAMID PREPARED BY: NAME | MATRIC NO | AHMAD SHABIRIN BIN BAHRIN | 221521 | YELMI MARIANI BINTI ZULKIFLI | 221792 | LEONG SIAO ZHUEN | 230190 | NIWASHINI A/P SUBRAMANIAM | 230293 | ANG HUI QIN | 230294 | EXECUTIVE SUMMARY Delta Airline began 2008 with more worldwide destination of 321 destinations in 58 countries. In 2008 merged with Northwest Airlines, become the largest airline in the world. In May 1st 2007, Delta adopted policies regarding estimated lives & residual values for aircraft, but its was far from the 1st time it had changed its estimates. PPE (flight, ground property) are often more than half of the total asset. Depreciation of those asset is a major operating expenses and is not an attempt to measure the current value of assets. The amount of depreciation estimated by an airline company for each operating period is based in the cost of asset, estimates of asset lives, and assumptions about residual values at the end of the asset lives. These estimates & assumptions have changed through the years for almost all airlines. Depreciation practices had been change several time. CAUSE AND STATEMTN OF PROBLEM Delta, has changed assumptions of economic life of aircraft 4 times since 1986, each time extending the expected...
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