Company Analysis
Courtney Monti
Friday, April 8, 2011
MGT 300.101
Delta Air Lines, Inc. is home to more than 80,000 employees who serve everyplace 160 million customers a year, with over 500 aircrafts that go away to more than 350 destinations in almost 70 countries on 6 continents all year round. Delta has not always been the Delta we know nowadays. They started as the seeing red Daland Dusters crop-dusting operation, founded in 1924, in Macon, Georgia. In 1928, C.E. Woolman bought Huff Daland Dusters and renamed it Delta Air Service. Delta did not become the true Delta we know today until 1941 when it moved its headquarters to the place it is now, Atlanta, Georgia (History, 2011). Delta has received legion(predicate) awards throughout the years and the most resent one is the tour one spot on the FORTUNE Worlds Most Admired Companies Airline Industry List (Anderson, 2011). even though they made this achievement, Delta still has the same issues and opportunities to make changes that many a(prenominal) other airlines and industries have. Some of these issues and opportunities include: volatility in terminate prices, expanding charter operations, and competitive pressures.
Volatility in go off prices
cook: International market conditions, geopolitical events
Impact: Causes debt, raises flight costs, lowers bounteous capacity, decreases profits
Recommendation: Go green
Due to numerous fluctuations in the economy, fuel prices are continuing to rise. This increase affects the airline industry greatly. In 2008 and 2009 fuel cost accounted for 38% and 29% of Deltas run expenses (Datamonitor, 2010). Fuel costs being such high of a percentage for operating expenses is causing Delta to raise their flight costs, which in turn lowers full capacity, causing a decrease in profits, and causing debt. Considering the constant changes in the economies of geographical areas that pump fuel, Delta allow never be able to lower their fuel cost. This is an on-going cycle for Delta and...If you want to get a full essay, localize it on our website: Ordercustompaper.com
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