Delta Airlines

Paper Summary:

This paper describes Delta Airline's performance before deregulation and after deregulation when strong management and a strategic expansion plan bolstered strong growth and carried Delta to the top of the airline industry. The paper shows, however, how Delta's power as a corporate force caused it to be less competitive price-wise when discount airlines entered the market. The paper relates that this eventually forced Delta towards bankruptcy and its merger with Northwest Airlines. The paper examines the business issues for the CEO of Delta regarding the merger.

Table of Contents:
Abstract
History of Delta Airline's Performance Before Deregulation
After Deregulation
Strategic Acquisition and Craft Usage
Bankruptcy
Prediction of the Airline's Status in the Next Generation
Conclusion

From the Paper:

"The history of Delta as a corporation really begins in the post deregulation free market environment after 1978. At this time, Delta was aggressive, early and effective in expanding, gaining competitive advantage and significant market share through effective strategic techniques such as licensing partnerships, plane leasing, and swallowing of failing airlines. However, after several decades of expansion, the prices of Delta became their biggest issue, as discount companies began competing by lowering overhead costs and services and passing those savings onto the customer. Bankruptcy revealed revenue issues that continue to exist, including rising oil prices. The onus remains on Delta to find ways to remain competitive against discount airline market offerings, and not to once again get lulled into a sense of security by the sheer size of their corporate entity and operation. To get out of bankruptcy, Delta had to earn concessions, concessions that they will have to repay, as well as merger costs. The challenges of profitability remain, even while gross profits are ensured."

Sample of Sources Used:

• ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the fiscal year ended December 31, 2006 (2007). Retrieved November 20, 2008: http://www.sec.gov/Archives/edgar/data/27904/000118811207000582/t13049_10k.htm
• Airline Deregulation. 2008: http://www.avjobs.com/history/airline-deregulation.asp
• Perkins, Ed. "Little good seen coming from Delta-Northwest Merger." November 16. Retreived November 20, 2008: http://www.dispatch.com/live/content/travel/stories/2008/11/16/merger_ART_11-16-08_F4_2GBRQ1P.html?type=rss&cat=&sid=101
• COMMENTS OF DELTA AIR LINES, INC. ON NOTICE OF PROPOSED RULEMAKING AMENDING 14 CFR PART 234: January 22, 2008. Retrieved November 20, 2008: http://www.regulations.gov/fdmspublic/ContentViewer?objectId=09000064803a14b7&disposition=attachment&contentType=pdf.
• Delta. (2008) Retrieved November 20, 2008: http://www.wikinvest.com/stock/Delta_Air_Lines_Inc._(DAL)#_note-1

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