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.
The targeting strategy that Delta Airlines follows is a Single Segment Strategy. Business fliers are the main target for this airline. In order to reach their target market, Delta Airlines is conveying its message that it delivers everything business fliers need through advertising in broadcast media and other national media. A differentiation strategy is the extensive flight service and brand legacy of Delta Airlines is recognized throughout the airline industry as unique. There are several benefits of Single Segment Marketing. The company can gain more competitive edge. Their major competitors are United Airlines, Northwest Airlines, American Airlines, and British Airways. Also, the company can create more fine-tuned offerings at the right price for the specific market segments as well as have a clear picture of the
While Frontier and Delta are both popular choices of airlines for Americans, Delta has become more of a household name because of their friendlier service, more comfortable cabins, and their limited extras fees. Frontier airline still is a worthy competitor by being cheaper, but they also have many added on fees for things that are free with Delta. Overall, Delta knows how to take better care of their customers and make sure everyone is satisfied.
One of the most large scale United States Airlines since the late 1920s is the Delta Airlines Incorporation. The incorporation’s financial statements are more than $9 billion in operating income and over $40 billion in total revenue Its net income was US$ 926 million. It is also worthwhile to note that Delta Air Lines, Inc. was the most admired airline for the 5th time in the span of six years and was named Fortune's Top 50 Most Admired Companies. 2 – How Delta Airlines Compete With Other Airlines
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
One of the five remaining legacy carriers, Delta is the sixth-oldest operating airline by foundation date, and the oldest airline still operating in the United States. The company's history can be traced back to Huff Daland Dusters, founded in 1924 in Macon, Georgia as a crop
The SO category suggests three alternatives. The first alternative is to include airlines in India and China under the Sky Team alliance. By doing this, Delta can penetrate into untapped emerging markets and increase its presence. The reason we suggest India and China is because these countries were amongst the lowest to be affected by recession and Delta doesn’t have its prevalence in these regions (http://www.economist.com/node/15172941). Secondly, Delta can capitalize on creating its hubs in India strategically in the long run after gaining access to these markets. The airline will benefit from larger population in both the countries and the government in India encourages Foreign Direct Investment in comparison to China. The third strategy promote business traveler programs in the U.S. Business travelers spend more on their trips and are not as
Even though they have the leadership of an executive board, they are a publicly traded company with shareholders. “Delta provides scheduled air transportation for passengers and cargo throughout the United States and around the world.” (Delta Annual Report, 2013, pg. 2) This passenger and cargo business brought in a hefty $10.5 billion showing a $1.5 billion increase from 2012. As of December 31, 2013, Delta owned 592 aircraft. They had 94 on capital lease and 57 on operating lease bringing their fleet number to 743 total aircraft. Delta had commitments to purchase 147 more airplanes, lease 75 more and options for 42 additional aircrafts. Delta’s regional carriers, who they are partnered with, operate 532 aircraft. These partners are Endeavor Airlines, Express Incorporated, Sky West Airlines, Compass Airlines, Shuttle America Corporation, GoJet Airlines, LLC, and Chautauqua Airlines Incorporated. Delta also leases most of their land and occupied buildings. Their main offices are located at Hartsfield Airport in Atlanta which is leased from the city of Atlanta, Georgia. They own real property in Atlanta, Georgia, St. Paul, Minnesota, Minot, North Dakota, Chisholm, Minnesota, and Tokyo, Japan. Impressively, Delta is in every major domestic market and they use a hub and spoke system making it easier to reach all geographical regions in the
The company I chose to research is Delta which is in the airlines industry. Delta is one of the world’s largest global airlines that assist more than 160 million travelers get to destinations around the world. The company started in 1924 as a small aerial crop dusting operation known as Huff Daland Dusters. In 1929 Delta had its first passenger flights that went from Dallas, Texas to Jackson, Mississippi. This flight was taken on an airplane that carried 5 passengers and 1 pilot. Delta has been offering its service to customers for 85 years. For four consecutive years, Delta has been ranked No. 1 in the Business Travel News Annual Airline survey. This is a huge accomplishment because it is a first for any airline. It is important
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.
Delta Airlines have transformed over the decades. They started out as a crop dusting company, blossomed into an airline company, fought litigations, went bankrupt, then resurrected it and merged with Northwest Airlines to become one of the biggest airline companies in the world. Their aircraft, operations, and cities and countries that they service have transformed and blossomed as well.
This paper covers an overview of Delta Airline’s company and industry analysis. The company analysis involves an assessment of Delta’s mission statement, strategies, and market and financial performance. On the other hand, industry analysis covers industry attractiveness, future prospects and firm-level comparisons.
Delta is the 2nd largest airline company, holding 17% of the domestic market share (RITA, 2015). Southwest, the largest airline company, has 17.8% of the domestic market share (RITA, 2015). Limited suppliers is mildly unattractive, but is expected to become neutral for Delta. Product differentiation is neutral and expected to become mildly attractive. Delta will become more popular again because of peoples willingness to pay for a better product. Delta is a higher quality compared to Southwest airlines. While flying with Delta, the customer will get the opportunity to choose a desired seat, and will receive refreshments (Main Cabin, 2015). Southwest does not serve snacks on flights, but when flying on Delta, if the trip is longer than 900 miles, passenger will receive the snacks (Main Cabin, 2015). Rivalry is mildly attractive but will become neutral. Switching cost is neutral and will become mildly unattractive. Since the decline of the economy consumers have become more frugal. They are looking for the best deal they can find. Quality of substitutes is mildly unattractive and will remain mildly
New technology: Internet (60% of seats were booked on-line), paperless operation, computerized, Reservation operation (not using call center)
With over eight hundred aircrafts, over one hundred seventy million customers each year, and flights to over fifty-seven countries, Delta Airlines has proven to be a large and powerful global company. Delta Airlines began in 1924 as Huff Daland Dusters, which was a crop-dusting and mail service operation and the first commercial agricultural flying company in existence. C.E. Woolman purchased Huff Daland Dusters in 1928 and changed the name to Delta Air Service. The company then had its first passenger flight the following year, which carried five passengers and one pilot. After four years of suspension of passenger flights, they resumed in 1934 and renamed the company once again to Delta Airlines. Delta started building their reputation as a socially conscious company when they took part in the war effort in 1942, by modifying their aircraft and training army pilots and mechanics.
Another major customer base for Delta Airlines, Inc. consists of traveling families. Each member within the family has different pains and gains. For parents, they desire to be relieved of the pains caused by flying with antsy/crying children. An example of a CVP directed towards this customer segmentation would be “our air transport services help travelling families who want to have a stress-free, entertaining, and uninterrupted experience by providing highly rated entertainment options and wifi on-flight, as well as ample self-service opportunities.” Both wifi and video entertainment are great solutions to these pains. Kids experience many gains from these things as well, as TV and movies provide entertainment for them. Delta relieves parents
In this essay I will create a nine-component marketing plan on flying full-service business class with Delta opposed to flying with a discounted low-fare carrier like Southwest. As the economy struggles and air travel becomes more competitive it is not easy to establish the best niche market strategy for an airline. Teplensky defined (as cited in Parrish, Cassill, & Oxenham, 2006) niche market strategy as, "an emphasis on a particular need, geographic, demographic, or product segment" (p. 695). Therefore, it would be ideal for Delta to seek a more specific niche in air