Balance Scorecard Comparison
I. AIRLINE’S BALANCE SCORECARD
Delta Airlines is one of the world’s largest airlines and transports more than 160 million travelers a year.
The mission Statement of Delta Airlines is that they will form strength for positive local and global change since they will become “A force of Global Good”. They also committed to improve the standards and the environment that surrounds the employees and costumers, by performing their tasks in a socially and ecologically friendly manner.
The company plans, as a long-term goal to obtain a $6 billion dollars in annual operating cash flow and $3 billion of free cash flow. An increase on the cash flow on hand will give flexibility to the airline in order to reinvest and to reduce debt, which plans to decrease up to a $5 billion of adjusted net debt by 2016. In addition, it also plans an Annual EPS growth of 10%-15% after 2014, and to obtain a higher return on invested capital. According to investor day presentation, Delta Airlines plans to generate solid margins and cash flow, achieve an investment grade balance sheet, and sustainable shareholder returns. In addition, the fact that the company wants to increase its revenue sources, it plans to invest in international business. Actually, the international partnerships expand Delta’s global reach. In order to improve cost efficiency, it plans to generate a modest capacity growth with fewer aircraft.
Financial Perspective | |
Goals | Measures |
Prospere economically | Increased Return on investment, reduce debt. |
Increase gainings | Increase operating cashflows, Expand the global network reach |
New sources of revenue | International partnerships |
Delta Airlines plans to improve their cost efficiency of their products by providing better deals with better services in order to improve their costumer satisfaction. The company also plans to continue reducing the number of...