Least Admired Company: Delta Air Lines
The aviation industry has seen significant changes that have had massive impact on the operators due to the globalization and the shifts in local economic trends over the past decade. This has meant that the airlines have had to make significant adjustments as well as innovations that would enable them to stay afloat in the industry. However, amidst all the coping strategies that airlines have adopted, there are still some airlines that face massive challenges in ensuring they meet the local as well as the global demand for their services, one such is the Delta Air Lines.
The Delta Air Line has a long history, and was started as a crop dusting operation in 1924 under the name Huff Daland Dusters and since then ahs grown and diversified into passenger and cargo services with a global reach. They once indicated to be serving 160 million travelers globally. The air line has however faced several challenges, some of which are not unique to the airline alone. Safety is a global challenge that the airline faces with the onset of repeated attacks and targeted attacks at the air lines in the recent past. Global terrorism especially in the aviation industry has seen Delta Air Line to...
These are costs that make it harder to profitably operate since they are hard to pass down to the customers.
The other global challenge facing Delta Air Lines is the environmental conservation concern. The emissions are a constant concern in the global market with airlines continually shifting to the more eco friendly engines and aircrafts that generate least possible greenhouse gasses. The adaptation of the greener aircrafts whose engines have been refined by technology to use friendlier fuels like bio-fuels means a higher cost, which, taking into account the already crowded and competitive market, is a challenge to Delta Air Lines. This extra cost makes it hard to shift to the newer technologies, in effect losing some of the environment conscious clients to the airlines that have adhered to these guidelines (Samantha S., 2014).
There are as well local challenges that Delta Air Line faces, one such significant are the internal programs initiated to retain clients. The airline introduced the earning of points per mile travelled that would be redeemed once one achieves 125,000 miles accumulative. This however…
References
Grant M, (2013). Delta is About to Make its Problems Worse. Retrieved September 26, 2015 from http://fortune.com/2013/06/21/delta-is-about-to-make-its-problems-worse/
Osborne C., (2013).10 Challenges for your Airline and Airport in 2013. Retrieved September 26, 2015 from http://www.zdnet.com/article/10-challenges-for-your-airline-and-airport-in-2013/
Samantha S., (2014). 3 Biggest Challenges Facing the Global Aviation Industry. Retrieved September 26, 2015 from http://skift.com/2014/10/14/3-biggest-challenges-facing-the-global-aviation-industry/
Delta Air Lines Inc Delta Airlines Inc. Delta Air Lines, Inc. is an established American airline, which operates under the name Delta Air Lines. Delta Air Lines has her headquarters in Atlanta, Georgia in the United States. The airline operates over an extensive domestic and international network, servicing all the continents of the world with the exception of Antarctica (O'Neal, Jacob, Farmer & Martin, 2007). Delta Air Lines operates over five thousand
Delta Airlines Customer care problem at Delta Airlines The customer care at the airline has been dotted with lots of complains from the clients over poor phone etiquette, reluctant staff, poor response to complains, lack of attention to the clients and rather spending time socializing with each other at he expense of the comfort of the clients. This has made the company have a negative publicity both online and among the
corporate merger between Delta and Northwest airlines in order to find out the possible reasons why it was necessary. We evaluate the merits associated with corporate mergers and the challenges that might be faced in the process. A recommendation on how mergers should be carried out is also provided Mergers and acquisitions form a very integral part of the contemporary corporate landscape. Kolker (2010) points out that initial six months
For example, Delta cannot readily expand to Canada by any means because of regulatory limits on foreign carriers. Competition is a key driver of change in the industry as well. Firms behave in a manner similar to oligopolies, responding to each other's moves. This forces firms to be creative with respect to how they attract and retain customers. An innovation like loyalty programs is easily replicated by all competitors in
By the turn of the century, though, these low-costs carriers had become profitable or at least had significantly reduced their losses due in large part to concomitant increases by major carriers that were increasing their prices in response to decreasing yields and higher energy prices (Doganis 2001). By and large, passenger traffic across the board increased significantly prior to September 11, 2001 and all signs indicated it was continue to
Portfolio Management The current business trends in the airlines industry have the Delta Air Lines Inc. In dire need to exploit on its opportunities while minimizing on its threats and weaknesses. Thus, after various consultations, it is essential to establish a comprehensive strategic business unit (SBU) to propel the company to the top of the industry. The portfolio of the company allows it to venture into various activities that will