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Delta Airlines Porter's 5 Forces

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The large multinational corporation I chose is Delta Airlines. Delta Air Lines, Inc. is a major American airline, with its headquarters and largest hub at Hartsfield–Jackson Atlanta International Airport in Atlanta, Georgia. Delta Airlines along with its subsidiaries and regional affiliates operate over 5,400 flights daily and serve an extensive domestic and international network that includes 319 destinations in 54 countries on six continents, as of October 2016. [1]
One of the five remaining legacy carriers, Delta is the sixth-oldest operating airline by foundation date, and the oldest airline still operating in the United States. The company's history can be traced back to Huff Daland Dusters, founded in 1924 in Macon, Georgia as a crop …show more content…

The level of risks increased as Delta expanded into unchartered territory within the Caribbean, Europe and Asia. The possibility of loss of market share was also probable as Delta decided that it was unable to compete on a level playing field with United Arab Emirates government backed airline - Emirates. The pre-tax income for 2015 was $7.2 billion, representing a $6.1 billion increase compared to the prior year predominantly as a result of lower fuel prices and strong non-fuel cost controls. Delta’s operating revenue increased $342 million compared to the prior year primarily resulting from their “Branded Fares” initiative and agreement with American Express. [3] Total operating expense decreased $5.3 billion from 2014 driven by lower fuel prices, partially offset by fuel hedge losses, higher salaries and related costs and profit sharing. During 2015, Brent crude oil averaged $52 per barrel and closed the year below $40 per barrel, which is significantly lower than the average of $99 per barrel during 2014. Salaries and related costs were higher as a result of increases in pilot and flight attendant block hours due to higher capacity and pay rate increases implemented in

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