Case Study : Delta Air Lines

This report seeks to recommend practical strategies on how to improve service productivity, without neglecting service quality of Indigo Airlines.

Hey Josh, great post this week. I have never flown on this particular airline myself, but it seems like I should try it. Any company who has a golden rule like the one stated in our reading must be a nice one. I have been on a few different airlines and was let down on several occasions. I think sometimes the flight attendants are over worked and get their schedule changed a lot. This is still not a reason to get nasty with the customers who have paid good money to fly with the airline they are working for. I feel all companies should pursue the golden rule. Everyone should be treated the same regardless of where they are at. Southwest Airlines have got a good thing going and good reputation with their customers. I think Delta could take a

Technological advancements, mergers and acquisitions, volatility in crude oil prices, currency depreciation, ground staff management and baggage handling are the major external factors for Delta Air Lines. The Monroe oil refinery purchased by Delta Air Lines provides an opportunity for the company to deal with the volatility in crude oil prices. Presently Delta Airline is over dependent on the North American markets, which had experienced a major hit during the recession in 2008.

Delta is the 2nd largest airline company, holding 17% of the domestic market share (RITA, 2015). Southwest, the largest airline company, has 17.8% of the domestic market share (RITA, 2015). Limited suppliers is mildly unattractive, but is expected to become neutral for Delta. Product differentiation is neutral and expected to become mildly attractive. Delta will become more popular again because of peoples willingness to pay for a better product. Delta is a higher quality compared to Southwest airlines. While flying with Delta, the customer will get the opportunity to choose a desired seat, and will receive refreshments (Main Cabin, 2015). Southwest does not serve snacks on flights, but when flying on Delta, if the trip is longer than 900 miles, passenger will receive the snacks (Main Cabin, 2015). Rivalry is mildly attractive but will become neutral. Switching cost is neutral and will become mildly unattractive. Since the decline of the economy consumers have become more frugal. They are looking for the best deal they can find. Quality of substitutes is mildly unattractive and will remain mildly

7)  Retirement plans worth $1,5 billion (Delta Airlines, 2014, p. 7)  Providing a safe working environment (Delta Airlines, 2014, p. 7) For instance, the initiative of Delta’s staff to procure a jet in 1982, as a gift to the company, is a strong indicator of how successful this method is (Kaufman, 2012). Consequently, even though the company went through many acquisitions, merges and was even at the brink of bankruptcy, throughout the years (Tully, 2014), it managed to survive and prosper. 2. Environmental Approach Moreover, Delta Airlines is an organization that not only cares about the affluence of its internal environment but also for its external.

After the occasions of 9/11, individuals are hesitant to go via air. On account of this reason that organizations lose billions plane air carriers including Delta. So this is bad for delta and it lost numerous billions.

This report provides an examinaion of the current structure, performance, stragergy and management of Delta Airlines, along with an industry analysis of the airline industry. The report uses current and past financial and statistical data for the company along with other up to date material to determine Delta's current market position and future potential.

Delta’s road to operational success has been a journey for the company; ever-changing and consistently moving forward. Through trails and reevaluation,

Delta “focuses on shifting their cost structure from fixed to variable costs as much as possible.” (https://rctom.hbs.org/submission/delta-airlines-flying-high-in-a-competitive-industry/) Delta also understands the importance the importance of delivering top notch customer service to appeal to their principal demographic, business travelers. They have incorporated a training work-shop so employees have a better understanding of how to solve travel disruptions that customers deal with. Employees also learn how to help insure that baggage performance is up to par with a low amount of mishandled bags reports from customers. Delta has done this by incorporating a way for customers to track their bags using a mobile app. In the Business Travel News Delta has been ranked #1 by corporate flyers for four years in a row. I believe the business level strategies that Delta has incorporated have been a good choice for their business. Their strategies have helped them to gain a competitive advantage from customer service and great operating cost flexibility.

Southwest Airlines represents a rather unique organizational force that has driven the company to success since its inception in 1971. One of the most unique features about the organizational structure is that it is largely decentralized and employees are openly welcomed to express their opinions on a wide range of organizational issues. However, despite the "hands off" management strategy, the company consistently ranks as one of the top airlines in regards to customer complaints; in 2008, for example, the company received 0.25 complaints on average for every one hundred thousand passengers who used the aviation services (Triangle Business Journal, 2009). This analysis will look at some of the organizational factors that have contributed to the success of Southwest Airlines over the course of the last few decades.

31 million pieces of luggage are delivered late worldwide each year. Delta Airlines is one of the worst offenders when it comes to losing passengers baggage. Delta loses 30% more bags than the best airline in the industry. Since passengers are now charged a fee for each bag checked, the expectation is that Delta should be doing a better job with baggage handling. The airline generates $952 million a year in checked bag fees and spends about $250 million a year on the labor costs of handling the baggage. While the company is generating $952 million, the cost of dealing with lost baggage averages $3 to $4 billion each year. The company will be able to reduce the number of lost bags by investing in new and better technology to track each

From the humble financial portfolio as a crop dusting outfit in the mid twentieth century, to the multi-billion dollar portfolio of a major airline in the twenty first century, Delta Air Lines has risen as a successful business. The airline industry is directly affected by outside economic conditions and is also cyclical in nature. These factors make it very difficult for airlines to make predictions to stay financially afloat. Delta has ridden the bumpy path of the last twenty years and managed to survive. In the past twenty years there has been many events that

As with all airlines, Delta’s recent performance has been significantly impacted by industry shifts and external events. Terrorist attacks and escalating costs have significantly impacted Delta’s profitability in recent history (Rivkin 4). The company has also been losing valuable market share to the low-cost carrier Southwest Airlines throughout the southeast and specifically in the lucrative Florida market (Rivkin 8). JetBlue also began encroaching on key Delta routes, and this seems only likely to increase (Rivkin 9). Despite this, Delta has still performed better than any other legacy carrier (Rivkin 8). Still, recent history has brought several changes to this legacy carrier, and the company has turned its attention towards new competitive strategies.

This would have provided the agents with information facilitating a decision to hold the plane, after its scheduled departure time, awaiting McPhersen's arrival within reason. A 15 minute late departure could address the needs of Gold Level passengers while not inconveniencing other passenger too greatly. * Integration of the airlines information systems with the business processes and customer service policies which supported its reputation for excellent service. The value that information systems can provide to an organization are often stifled when the corporate culture is not integrated with the system (Laudon & Laudon, 2006). Fear of change and resentment can cause employees to sabotage the effectiveness of the information system. By educating employees as to how IT can aid them in performing their roles and providing employees with additional autonomy to make decisions based on the information provided the airline can create empowered agents able to address the immediate needs of their customers and increase overall satisfaction with the airline. * Collect and use customer information and feedback in order to provide a better level of service. By leveraging the information that the airline already has in place for its bookings and Gold Card Members the airline can immediately begin to create policies and programs to better serve the needs of their customers and make informed decisions related to

Over the last year, flight problems such as cancellations and delays along with baggage issues have accounted for 50% of all consumer complaints. Ticketing, boarding, and security issues have accounted for another 15% of all complaints filed with the Department of Transportation leaving you ranked 10th among the 13 major U.S. carriers. Also,