Delta Airlines Strategy

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Delta Airlines Board of Directors Presentation October 18, 2013 Consultants: General Overview of Delta Airlines Strategy DELTA’S CURRENT STRATEGY COMPANY’S SANDBOX High rivalry makes industry unattractive Profitability increasing, but still below cost of capital Consolidation trend has reduced rivals helping profits Trainer refinery acquisition: using vertical integration to address Delta’s largest expense Metrics of improving flight completions, on-time arrival rate and decreasing mishandled bag to address customer satisfaction RECOMMENDATIONS • Trainer refinery: mitigate risks for success. • Customer satisfaction: domestic differentiation strategy and international best in class strategy Overview…show more content…
Company Strategy Conclusions Review 7 The industry have turned towards consolidation to improve profits Overview Industry Company Strategy Conclusions Review 8 As a result of consolidation, profits have improved Overview Industry Company Strategy Conclusions Review 9 Differing Business Models Outside USA Increasing International Rivalry Open Skies Aviation Agreements with UK, European Union, Japan and Latin America to increase competition among carriers there Several carriers like China, Singapore are government funded, which has allowed them to grow quickly and expand their global presence at the expense of U.S. airlines Well-funded carriers in the Gulf region, including Emirates, Etihad and Qatar – large numbers of international widebody

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