Comair

Delta airline uses merger so as to be able to expend its business. In 2008 the company merged with Northwest airlines. It operates in Europe, North America and Asia/Pacific regions. Once the merger was complete, Northwest Airlines and all its constituents become wholly-owned by Delta Airlines. The merger saw to it that Delta Airlines started operating in the Northwest for FY 2008. In the period of two month that is from October of 2008 the time the merger was completed to December of 2008, the company had increased it revenues to $2 billion. Having a flexible nature, allows Delta to improve customer services, and in the long run be able to achieve its strategic objectives.

There definitely was a crisis happening in that airline. They didn’t seem to have a cohesive culture and it seemed as if they continued down this path they would no longer have a business either. British Airways had this divide between BEA and BOAC.

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.

The report finds that Delta Airlines has successfully emerged from its bankruptcy in 2005 to report successful returns in both 2007 and 2008. With its 2008 acquisition of Northwest Airlines Delta became the world's largest airline, further improving its position in the airline industry. Despite this current positive position report also finds potential adversities

Delta’s biggest expenditure is the cost of fuel. Delta knows that the cheaper you can purchase aircraft fuel, the more profit you can make in the long run. Since Delta’s merger with North West Airlines in 2008, Delta also gained a financial benefit of the merger in the buying power when it came to fuel contracts. The volume of fuel in which the combined planes used did result in significant savings.

"The weakness is that they're looked at as the role model and they have had some weaker competitors over the years, mainly American and United. And the concern is that American and United, as they improve their own operations, they will put pressure on Delta, and potentially Delta could lose certain business travelers, so market share loss to some of these players on the corporate side."

In response to the incident, various representatives from the airline expressed contradictory reasoning as of the why hundreds of flies were canceled and/or affected by such incident. Willie D. Jones from IEEE spectrum suggests that Delta’s computer system failure is a part of a pattern. He expressed such opinion departing on that major other

The purchase of the Trainer refinery would help Delta with their financial woes in a couple of ways. First of all, it acted as a way of hedging against rising costs in a time of turbulent change in the oil market. The strategy of purchasing a jet fuel supplier worked as a type of vertical integration. The refinery, which would produce mainly jet fuel, would provide Delta with up to 80% of their fuel needs. Changes in the price of crude oil- and subsequently the cost of jet fuel- would affect Delta less since they were manufacturing their own fuel. This eliminates some of the uncertainty and financial strain in hedging as Delta could essentially set their own fuel prices and avoid paying hefty primiums associated with call options (Pearce

The level of competition in the airline industry is high. The big airlines essentially fly to the same places out of the same airports for about the same prices. The amenities, or lack of amenities, they offer are similar, and the seats in coach are just as cramped no matter which airline you choose. Delta's traditional rivals include United and American, but the company also faces major competition from the growing popularity of value carriers, most notably Southwest but also JetBlue and Spirit. Because the air travel experience for a customer is remarkably similar no matter which airline he takes, airlines are constantly threatened by the prospect of losing passengers to competitors. Delta is no exception. If a customer is planning to book

It was an ambitious acquisition for Unity bank because Delta had comparatively much bigger operation in United States but the key to this issue would lie in the integration result.

As the new century unfolded, Delta Air Lines continued exponential growth becoming one of the largest airlines in the country. A merger with Western Airlines in 1987, the acquisition of Pan Am’s transatlantic routes in 1991, and a final merger with Northwest Airlines in 2008 meant Delta now had routes all over the world. Delta like many other airlines faced very difficult times post 9/11 and during the recession. The airline made significant cost improvements across its operation and the merger with Northwest Airlines ended up pushing the airline back into profitable business.

Through similar mergers in the 1980s and 1990s, Delta extended its reach into trans-continental and international markets (Rivkin 7-8). According to its stated position today,

5. How does the merger between Delta and Virgin Airlines impact the company as a whole? (Outside research required).

The airline industry is interpreted as being very unstable due to the immediate reaction to tragedies. The airline industry was affected following the September 11th tragedy and it affected other industries indirectly. The airline industry plays a key role in

• • • Oct-Nov 2006: Smaller company acquires a market leader June 2007: major integration: systems & operations Unity’s integration goals: • Save $60 million worth of IT expenses within 3 years on staff and infrastructure • Wants to be the world’s #1 provider of share registry services • Maximize shareholder wealth CIO, Stuart Irving worries: • Lack of due diligence because of legal problems • Hart Scott Rodino Act prevented proper communications • Unknown bugs within Delta’s operations might affect the integration’s timeline & budgetary goals • Present a short and efficient integration to the investors