SWOT analysis of Delta Airlines

Delta Airlines in a major American airline company headquartered in Atlanta, Georgia, United States. The company was founded on May 30, 1924. They operate as an extensive domestic and international network. Delta currently operates a fleet of more than 700 aircraft and they employ approximately 80,000 people. In 2011 they were the world’s largest airline in terms of fleet size. Delta Airlines is a very successful company. Part of what makes them so successful is expansion, making good decisions in route selection and hubs location, being service oriented, having a strong operation management, being reactive in terms of prices, and offering low fares.

Southwest Airlines has been making changes over the past few years that helped them become the largest low-cost carrier in the United States. Most other airlines have been struggling to make it through this economy, but Southwest has found a way to thrive. The airline has dropped their prices and eliminated fees for extras that have allowed them to fill up most flights. One cost they continue to struggle with is offsetting the increasing fuel prices. This has caused some airlines to merge or sell the company to competitors.

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.

Referring to the SWOT analysis, we assume the most uncontrollable issue imposed on C.P. is the circumstance of fierce competition existing in the current airline industry. Consequently, as alternative submissions, the company should remain constantly advancing new strategies, namely acquisition and introducing of a budget confederate.

Delta Airlines initially started out as a very small crop dusting operation named Huff Daland Dusters in 1942 (Delta, 2016). Today, Delta has become one of the largest global airlines with serving more than 160 million travelers each year (Delta, 2016). Delta airlines provide both domestic and international flights to customers to 318 destinations over a span of six continents. They also have nine domestic hubs and three international hubs (Delta, 2016).

The Risk of Entry by Potential Competitors – Since the deregulation of the airline industry in 1978 over 1,300 new airlines have opened for business. However, most now are bankrupt or merged with the other carriers to stay workable. The established giants were Delta (merged with Northwest), American Airlines (merged with U.S. Airways), United Airlines (merged with Continental), and now Alaska Airlines (merged with Virgin America). Now the Low-Cost Carriers (LCCs) are posing a massive threat which includes Southwest Airlines (merged with Air Tran), and JetBlue.

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

Airlines that merged became monopoly powers and effective competition ended. Delta and Northwest merged along with American Airlines and US Airways. The top five airlines have more market power than before the deregulation, in many large airports just a single airline controls 75% to over 85% of all domestic flights. Houston Intercontinental Airport is dominated by United Airlines, Dallas/Fort Worth International Airport is controlled by American Airlines, and Hartsfield-Jackson Atlanta International Airport is controlled by Delta (Finger, 2012). Airlines have now slashed the number of flights and pricing is increasing rapidly.

The domestic US airline industry has been intensely competitive since it was deregulated in 1978. In a regulated environment, most of the cost increases were passed along to consumers under a fixed rate-of-return based pricing scheme. This allowed labor unions to acquire a lot of power and workers at the major incumbent carriers were overpaid. After deregulation, the incumbent carriers felt the most pain, and the floodgates had opened for newer more nimble carriers with lower cost structures to compete head-on with the established airlines. There were several bankruptcies followed by a wave of consolidation with the fittest carriers surviving and the rest being

The first was with Chicago and Southern Air Lines which took place in 1953. This merger allowed Delta to offer their first international flight route. This route was from New Orleans to Caracus, Venezuela. With this merger Delta Air Lines also incorporated Flying Colonel, which was Chicago and Southern’s customer recognition program. In 1972 Delta became the fifth largest airline in the United States after the merger with Northeast Airlines. In 1987 after 60 years in service Western Airlines merged with Delta Air Lines. Delta Air Lines most recent merger was with Northwest Airlines in 2008. At the time of the merger Western Airlines was the top cargo company in the United States.

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.

US Airways completed a merger in December 2013 . This merger provided much needed cash infusion into American Airlines, enabling it to emergency from

This paper will review the case study of Delta Airlines which was suffering like all its competitors with rising fuel costs which averaged anywhere between 30 to 50 percent of its total operating costs. This paper will answer six questions which will help identify what the company did to handle the high cost of fuel. The questions that I will answer will include the following.

Southwest Airlines Co. is a major U.S. airline. It is also the world's largest low-cost airline, and the headquartered in Dallas, Texas. What it consists of Herb Kelleher was founded in 1967 and subsequently changed its name to the current Southwest Airlines in 1971. As of December 2014, the airline has about 46,000 employees, more than 3,800 flights a day to run. As of 2014, the number of domestic passengers it carried in the United States is more than any airline. Until January 2016, Southwest Airlines service distribution plan 40 states 97 terminal stations, as well as Puerto Rico and other overseas cities. Southwest Airlines can deliver more than 55,000 employees to more than 100 million customers in one year right now (Swamedia, 2017).In addition to Southwest Airlines in the 1970s and 1980s, the years rented Boeing 727 aircraft outside, only using Boeing 737 aircraft. Until January 2016, Southwest Airlines Boeing 737 is the world's largest carrier, has 700 aircraft in service, average per aircraft perform six flights a day. On the passenger capacity, it is the world's third-largest airline. In the United States, it has the most open city. The Southwest Airline is famous on "discount airline” in all of the domestic competitors. From the beginning of 1973, it started profitable every year (Swamedia, 2017).Rollin King and Herb Kelleher created Southwest Airlines on June 18, 1971. Its maiden voyage was from Dallas Love Field to Houston and San Antonio,