Delta Company Analysis

1538 WordsJun 25, 20127 Pages
Delta Airlines, Inc. 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 over 160 million customers a year, with over 500 aircrafts that fly to more than 350 destinations in almost 70 countries on 6 continents all year round. Delta has not always been the Delta we know today. They started as the Huff 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 numerous awards throughout the years and the most resent one is the number one spot on the FORTUNE World’s 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 other airlines and industries have. Some of these issues and opportunities include: volatility in fuel prices, expanding charter operations, and competitive pressures. Volatility in fuel prices Cause: International market conditions, geopolitical events Impact: Causes debt, raises flight costs, lowers full 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 Delta’s operating 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

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