Delta Executive Summary

Delta Airlines is one of the leading airline industries in the market based on on-time performance, revenue per available seat, customer satisfaction, and it is well positioned in taking advantage of the new positive economic outlook for the airline industry. It is a domestic Airline carrier that provides passengers and cargo services throughout the US and other international destinations. Some of its hubs are in Atlanta, Detroit, Minneapolis, Amsterdam, JFK and Tokyo-Narita as well as in partnering with the existing regional airlines. Currently, the assets of Delta Airline are valued $54,252 million and the composition can be divided into three main groups including PPE (Property, Plant, and Equipment), Current Assets and other Assets (Luo, 2014).

Delta must be proactive with operational improvements or they will promote a negative reputation for their brand name from which they may not recover. Delta needs to urgently improve all customer service issues or face passenger declines. The board members, the CEO of the company, and the company executives, along with all employees

"From time to time Delta management seems conceited. They know they're the best and they act like they're the best. They are the opposite of humble, which is sometimes off-putting. They could gather more shareholders by

Delta Airlines is the largest airline carrier on the Atlantic Coast. In terms of scheduled passengers carried they were world’s largest airline with 277.6 billion in 2013. Also the second largest

American Airlines is looking to expand its market to more wealthy consumers by offering an excusive line of aircraft consisting mostly of first class and business type seating. This new model will be labeled under the title “Elite” and would market routes to and from major city hubs during heavy business traveling hours. American Airlines will position this service as the, “Black Jet” since that would be the standout feature of the aircraft. American can take advantage of its existing market base along with its frequent fliers to sell the experience of a flight experience beyond maximizing passengers. The target motto would be a “flight redefined.” American Airlines Elite would target business, first class, and frequent flying travelers.

AMR Corporation is the parent company of American Airlines. It is headquartered in Fort Worth, Texas. They are one of the largest airlines in the world. American Airlines is also one of the largest scheduled air freight carriers. American Airlines provides a wide range of freight and mail services onboard their passenger aircrafts. (http://www.aa.com/i18n/aboutUs/corporateResponsibility/company/profile-and-fast-facts.jsp). On April 8th, 2015, all of US Airways airframes were transferred to American Airlines when a Single Operating Certificate was awarded by the Federal Aviation Administration allowing the merger to be complete and making the airline one of the largest in the U.S. (https://en.wikipedia.org/wiki/American_Airlines_Group).

This research led me to compare the current strategy of the company and visualize the gap between this and the key issues that they have to tackle. Furthermore, in order to conclude this

What aspects of the company’s strategy do you believe represent the biggest challenges for Delta?

Considering our analysis of the company, it is recommended that shares of Boeing should be bought or held. This recommendation is based on factors such as company valuation, financial analysis of comparable firms, and a sensitivity analysis. In using the CAPM, the value of the stock calculated is equal to $192.48, which is more than the current trading value of $153.24 (Apr 13, 2015). In addition, the shares are also undervalued when using EV/EBITDA and P/E ratio analysis. Every analysis and calculation used for Boeing has implied that the company’s stock is undervalued, so we are confident this is would be a safe and profitable investment.

Weaknesses: American Airlines is still not able to lead against competitors in Asia. Both American Airlines and US Airways are having a difficult time with labor relations.

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

In some respects they're comparing themselves to Home Depot because Frank Blake was on the Board of Home Depot and now he's on the Board of Delta. He's the champion for taking free cash flow and increasing the dividend, and this growth in the dividend and shareholder buybacks is the template that Home Depot kind of did for a long time here. And now he's trying to implement this from the Board at Delta. Home Depot would be one. You could throw out one of the better industrial company. People also talk about the railroads as well, and basically the consolidation in the industry. There's a corollary to the airlines as to the railroad

Although this new partnership approach is credited with giving Delta Airlines a competitive advantage in the industry, we believe that the lynchpin for success has been a commitment to the following fundamental core values; effective communications, stress management, a universal understanding of how people learn; and an integrative performance management system which. This document intends to highlight key components of each core value as they relate to

External pressures are beyond a company’s control and will happen at one point or another. These issues must be addressed quickly and by directors who are not faint-hearted. Sally Bigger Moses was elected as chairman just three weeks ago. The decision she makes will drastically affect Mega Corporation’s future. We’ve mentioned week after week how the company doesn’t have a strategy for the future. Now would be a good time for the board to gather and come up with a plan on where they want to go before a decision is made.

In August 2016, Delta Airlines face a massive system shutdown (Martin, 2016). This system failure caused Delta Airlines 150 million dollars in revenue. Because of the shutdown the company