Supply and Demand Analysis

September 11, 2001 was a milestone in the history of the United States, which experienced a collective shock and trauma that has never been forgotten. In the United States most of all, the entire airline and tourist industry was driven to the edge of bankruptcy and would not have survived at all without a major bailout by the federal government. It was already in poor condition for many years after deregulation in 1978, the September 11th attacks were a Near Death Experience. After that time, the airlines decided that they could never permit another attack like this or they would be driven out of business. As it was, their stock prices collapsed and passenger schedules did not return to pre-September 11th levels for four years. All previous security plans were judged to be useless and inadequate, and were taken out of the hands of private security contractors and turned over to the federal government. New and more restrictive laws like the Patriot Act came into being, and the U.S. launched an all-out war on Al Qaeda that has continued for eleven long years.

Rising fuel prices has a huge impact on the airline industry. In an article published by the New York Times in 2007, oil prices were hovering ‘near $100 a barrel’ which caused the International Air Transport Association (IATA) to ‘slash’ their predicted profits for 2008 from ‘$7.8 billion to $5 billion’ (Clark, 2007). In 2008 high fuel prices were ‘dominant factor’ in the losses that faced the industry, and continued to same effect in 2009 (Dunn, 2009). Diagram 2 shows how fuel price has increased and fallen over the last 5 years.

The September 11th attacks have had a profound effect on American history. Often referred to as “9/11”, these attacks were comprised of a group of organized terrorists known as Al-Qaeda. This extreme Islamic group assaulted several landmarks in New York City, Washington D.C, and the state of Pennsylvania. In New York City, two airliner jets were hijacked with passengers aboard and slammed into the World Trade Center. “The next attack resulted in a plane colliding into the Pentagon, government building; the last attack was in Pennsylvania when a plane crashed into a field. In total, 3,000 people died on September 11th, 2001” (History.com Staff). The September 11th-attacks have affected airport security by the new training of flight attendants, the formation of the Transportation Security Administration and new technical advances to keep up with increased terror threats.

During the wake of the attacks of 9/11 the United States realized the importance of airline

After the occasions of 9/11, individuals are hesitant to go via air. On account of this reason that organizations lose billions plane air carriers including Delta. So this is bad for delta and it lost numerous billions.

This report provides an examinaion of the current structure, performance, stragergy and management of Delta Airlines, along with an industry analysis of the airline industry. The report uses current and past financial and statistical data for the company along with other up to date material to determine Delta's current market position and future potential.

Immediately following the September 11th attacks, the airline industry was severely damaged with a four day shutdown of the national aviation system. Across much of the United States and Canada, flights were grounded. Airlines and airports that did not have dedicated ground crews and additional

The terrorist attacks are only one of the causes of crisis in the industry because there are several issues that threaten the industry. One that was mentioned earlier gas prices. Labor disputes are a factor as well. You may say that the airline industry has hit an extremely bad era. The changes that these airlines are being driven to make will be very different from the way it used to be. As most people know, the government has had much in bailing out business and the transformation that some have undergone and the airline industry is no exception. The government has a major influence on the restructuring of the industry and the air transportation system in general.

The airline industry has seen drastic changes since September 11, 2001. The government ordered a complete shutdown for three days of not only all commercial aircraft but such carriers as domestic flights and emergency aircraft. For days after September 11th, all aircraft stayed on the ground. Even military aircraft had to receive special clearance to fly. In a ripple effect, the entire economy of the United States and the world was put on hold. The New York Stock Exchange shut its doors because of the attacks on the towers of the World Trade Center.

Many industries in the world were affected by the global financial crisis in 2008. Consumer spending decreased because of the financial downturn. The impact of the financial crisis on the airline industry is high and negative. Passengers

September 11th was the worst day for airline companies around the world. There was close to a 20% drop off in airline traffic in the fourth quarter of 2001. The U.S. commercial airline industry was in turmoil and

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.

As with all airlines, Delta’s recent performance has been significantly impacted by industry shifts and external events. Terrorist attacks and escalating costs have significantly impacted Delta’s profitability in recent history (Rivkin 4). The company has also been losing valuable market share to the low-cost carrier Southwest Airlines throughout the southeast and specifically in the lucrative Florida market (Rivkin 8). JetBlue also began encroaching on key Delta routes, and this seems only likely to increase (Rivkin 9). Despite this, Delta has still performed better than any other legacy carrier (Rivkin 8). Still, recent history has brought several changes to this legacy carrier, and the company has turned its attention towards new competitive strategies.

It was surprising for most customers that airlines currently decide to increase fares for U.S. domestic flights even though their expected costs decrease due to lower fuel prices. The prices are generally a process of revenue management that reacts on demand and competition, though domestic flight fares aren’t directly connected with the costs trends (Koenig, 2014). Airlines rely heavily on the brand loyalty of their customers in order not to be forced to offer the lowest prices. A common approach of a competitive edge is the implementation of improved in-flight services. One example in the past was the shift of

Economy airlines suffer during down economies and reduce their orders, and the industry has become dependent on the Middle East and Asia in recent years to offset this (Crooks & Weitzman, 2010).