ipl-logo

Delta Airline Paper

851 Words4 Pages

Pressures faced by legacy carriers
Global air travel has immensely grown over the past decade and there are signs of continued growth (expansion). The air connectivity was positively impacted by the increased expansion development of Middle East hub carriers(?). International Air Transport Association (IATA) reported that revenues increased to the US $746 billion (2014) from the US $369 billion (2004).
Annual growth in global air traffic passenger demand

Source: Statista
In addition, competition within premium airlines and with the advent of LCCs offering competitive pricing to lure in customers has put immense pressure on the industry. Legacy …show more content…

Source: Televisory’s Research Operating Statistics
Parameters Units American Airlines Delta Airlines United Continental 2014 2015 2014 2015 2014 2015
Total fleet …show more content…

The airline carried more passengers in 2015 than any other US carrier. The next in the line is Delta airlines, which follow a similar model to American. Both Delta and American airlines dominate few cities, wherein they primarily drive connecting flights through their hubs. In comparison with American Airlines and with other legacy carriers, Delta maintains a much older fleet. However, Delta's previous emphasis on older but well-maintained planes is changing now. For instance, Delta during the second quarter of 2016 placed orders for 75C-series planes from Bombardier and 37 Airbus A321ceo aircraft costing nearly US$10 billion (offering benefits such as fuel savings). The United Airlines, another major US carrier, focuses its capacity (focused) primarily on strategically important cities for business travellers. United with its greater exposure on international routes and with smaller hubs rely more on origin-destination traffic. Though, origin-destination traffic enables United to charge a higher fare in comparison with connecting flight fares, it faces greater competition and is, therefore, more susceptible to pricing wars in order to fill empty

Show More
Related

Compare And Contrast Delta Airlines Oligopoly

866 Words | 4 Pages

The airline industry is one of the most important industries in modern society as it keeps the world connected. Two of the biggest firms in this market are Southwest Airlines and Delta Airlines. The industry is an example of an oligopoly as only a small number of firms sell their services in a market with high barriers to entry. These high barriers largely come from the capital required to purchase a jet, let alone hundreds of jets, and to operate them with pilots and a crew. In this market, both Southwest Airlines and Delta Airlines share significant market power, and the decisions one company makes impacts the other, they are highly interdependent.

Read More

Delta Airlines Executive Summary

1042 Words | 5 Pages

Delta Air Lines Inc. The Rich History, Financial Statements and Position in the Market Delta Airlines Inc. founded by C.E. Woolman in 1928, began as a humble little aerial crop dusting operation out of Macon, Ga called Huff Daland Duster in 1924. Later renamed Delta Air Service in 1928 and flying its first passenger on June 17,1929 has definitely come a long way. From flying living vegetable plants to now flying over 160 million passengers to their destination of choice each year, is one of today’s global giants in the airline industry. Delta Air Lines commitment to exceptional service has given them the title of trendsetters in the industry.

Read More

Swot Analysis Of Air Canada

1235 Words | 5 Pages

The growing competition however does provide consumers with several choices and for Air Canada to be efficiently and constantly drawing its consumer it must offer " money for worth" deals, such as new multi-pass product, holiday packages and other promotional deals that has not yet been utilized in Canadian market. The possibility of Buyer power is moderate. Threat of New Entrants: Air Canada can be considered a fortunate airline as it does not have any major threat from new entrant stepping in Canadian airline industry due to the strict government legislation and regulations. “Even though the entry barriers for new airlines are lower in a deregulated market, still prospect of a new entrant entering the market is weak to moderate. Rivalry:

Read More

Spirit Airlines Porter's 5 Forces

1519 Words | 7 Pages

When a smaller airline infringes on a major airline’s turf in a major market, attempting to undercut them on price, the FSC often retaliates by lowering price whilst maintaining their premium offerings and perks. This creates downward pressure on average fares in that region, which is good for the consumer and leads to an increase in overall travel volume on those routes (See Figure 4 below) . Spirit is no stranger to this part of the market, and recently found itself in a pricing war in the Dallas-Fort Worth market (American Airline’s largest hub). Spirit attempted to move in and undercut American Airlines, to which American responded by slashing their prices in what Spirit’s management called a “chainsaw approach.” Moreover, not only did American retaliate in Dallas-Fort Worth, they also cut prices in all routes where Spirit overlapped, particularly in Chicago O’Hare Airport, American's third-largest

Read More

SWOT Analysis Of Parker-Hannifin Corporation

618 Words | 3 Pages

Increasing demand for new aircraft due to the rise in demand for affordable air travel will aids in expanding PHC’s revenues and profits. The rapid growth of air travel in the world's emerging economies are stabilizing orders for airplanes. According to Deloitte, the global air traffic is projected to grow at 4.8% annually (Fig 3). Figure 3. Global air traffic 1981-2016.

Read More

Delta Executive Summary

1065 Words | 5 Pages

Through these strategic investments, Delta will be able to build hubs in Sao Paulo and Shanghai and increase its market share in transatlantic and Mexico which in turn lead to its revenue and market growth (Forbes, 2015). Investing

Read More

External Environment Factors That Affect The British Airways Company

947 Words | 4 Pages

INTRODUCTION. At the present time, the airline industry faces many cost pressures. The industry has made remarkable achievements in improving its efficiency. But cost pressures continue, from record high fuel prices to unjustified increases in charges from monopolistic airports, to further taxes imposed by governments (industryspotlight.org.uk). Higher costs inevitably lead to higher prices for airline passengers.

Read More

Delta Airlines Marketing Strategy

1076 Words | 5 Pages

This enables Delta Express to operate point-to-point service that is not part of mainline operations. Delta Express gains leverage from being offer Delta SkyMiles frequent flier points. They introduced seasonal fares and constantly keep costs down. Even though the industry remains intensively competitive now, most the carriers have a route system well suited to their individual strengths, and fewer carriers have a route system well suited to their individual strengths, unlike fewer carriers are on the verge of bankruptcy or struggling to maintain the turnover. Most airlines pursue the total market strategy that is an attempt that is meant to provide services for significant parts of the business, leisure and freight segments.

Read More

Singapore Airlines Case Summary

1095 Words | 5 Pages

Singapore Airlines have to renew their fleet more frequently than Delta Airlines, due to a shorter aging period for their aircrafts. At some point in time, Delta Airlines will end up with a bigger number of aircrafts, which would be older than the ones of Singapore Airlines. If we consider that the average age of Delta’s airplanes is 8.8 years, and of Singapore airlines is 5.1 (both: case - pgs. 2 and 3) then the difference in airplane ages will be 3.7 years.

Read More

The External Environment In The Airline Industry

1563 Words | 7 Pages

Qatar Airways Qatar Airways are its aggressive growth plan backed by the state that includes the construction and development of the new Doha international airport, which will include the world's largest aircrafts' hangers to be used for maintenance of Qatar Airways. Singapore Airlines Success factors of Singapore Airlines are: young and efficient fleets, educated staff, top ranked travel gateway and its low cost airlines known as "Tiger Airways", plus it's a membership of star alliance airline networks American Airlines Success factors of American Airlines are: largest airline in the world in terms of the total passengers transported, highest number of aircrafts, first to launch the loyalty program "frequent flyers". PEST Analysis Political factors The airline industry is affected by political situations, namely wars and terrorism.

Read More

Swot Analysis Of British Airways Plc

1454 Words | 6 Pages

Refer to the popular and reliable Skyscanner portal [990] the route between New York and London Heathrow is the most popular one and it is served by 6 Carriers: American Airlines, British Airways, Air India, Delta Air Lines, Kuwait Airways and Virgin Atlantic. According to data from the previous month (December 2017), the most popular company that was serving customers flying between these cities was British Airways. This profitable route gives an example of direct rivals for British Airways in the fight for clients. It is impossible not to find a source in the press regarding the hot competition between BA and Virgin Atlantic [991]. Both companies originate from the United Kingdom, but BA was established long before Virgin Atlantic and gained the reputation of being listed among the best airlines in the world.

Read More

Porter's Five Forces In The Airline Industry Summary

1984 Words | 8 Pages

Threat of New Entrants. In the airline industry, the arrival of a new airline can be disruptive, particularly since new carriers tend to focus on high-value route corridors and bill themselves as bargain carriers. On the other hand, the cost of entry into the market is fairly high, and that fact together with the industry’s reputation for lim-ited profitability makes such disruptions rather rare.

Read More

Transnational Strategy Of Lufthansa

1545 Words | 7 Pages

For worldwide airline industry, opportunities can emerge from new client expectations, items, business sector structures or regulatory

Read More

Aviation Value Chain Analysis

1601 Words | 7 Pages

Competitiveness Airports operate in a highly competitive environment and therefore encourage developments which make the airport sector more responsive to the needs of their passenger and airline customers. Competition in the airline sector has been a driver of innovation and cost reduction and has delivered major benefits for consumers in terms of increased choice and value. Effective competition between airports is clearly something to be encouraged for the same reasons. “Within the aviation industry, MRO, ground handling, catering, CRS and freight forwarding created economic profits, but these were much more than offset by economic losses by airlines and airports. Airlines were responsible for the large USD17 billion of economic losses globally.

Read More

SWOT Analysis Of Flydubai: Low Fist Airlines

1467 Words | 6 Pages

For instance, with the global financial crisis and later the Eurozone crisis, the number of travellers has significantly reduced due to economic hardships. This has affected the profit levels of the airline as well as slowed down its growth prospects. The airline also faces intense competition from other low cost airlines forcing it to extensively invest in product differentiation to counter the competition. This is an expensive

Read More

More about Delta Airline Paper

Related Topics

Open Document