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Political-Legal Environment: Delta Airlines

In: Business and Management

Submitted By Wiems17
Words 781
Pages 4
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 losses of $13 billon [and] it reported its first profit of $5 billion in 2006 after four consecutive years of losses” (2014). The increase of restrictions and decrease of demand let to many small airliners filing bankruptcy, but fortunately for Delta Air lines they were able to rebound from the negative profit margins. The domestic political and legal environment is not...

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