August 15, 2013
Domestic Environment – Delta Airlines
Delta Airlines has 70 years of experience and is part of the airline industry. The domestic environment of Delta Airlines is the United States. The airline has grown into one of the largest global airlines in the world. Each year they help over 160 million travelers in reaching their destinations ("Century of flight," 2013). Delta Airlines started in 1924 in the agricultural industry. They were known as Huff Daland Dusters and were the world’s first aerial crop dusting organization. The dusting company only had income during the summer months, so it was decided that during the non-productive months, it would be the first American airline to operate airline mail south of the equator ("Century of flight," 2013).
By 1927, a 1500 mile route airline service was provided from Peru to Ecuador. By 1959, Delta had become one of the first to offer Boeing 707 services. In June 1993, they had accomplished combining with other airlines around the world, including 350 cities in over 55 countries. Delta broke their record of carrying 103 million passengers in 1997. In 1998 they made history by carrying over 105 million passengers ("Century of flight," 2013). Unfortunately in 2006, Delta Airlines made Fortune 500 's list least admired for their people management. Business theorist Peter Drucker states, "One does not ‘manage ' people. The task is to lead people. And the goal is to make productive the specific strengths and knowledge of each individual" (Drucker, 1999).
Government regulations are very involved with Delta Airlines, as they are with every airline in the industry. The government has regulations on national security, industry behavior, aircraft integrity, traffic control, etc. (Lutzenberger, 2013). While most of the regulations are regarding safety, some are also regarding protection of competition.
References: Century of flight. (2013). Retrieved from http://www.century-of-flight.net/Aviation history/coming of age/usairlines/Delta Airlines.htm Drucker, P. (1999, September). Management challenges for the 21st century. Retrieved from http://tap3x.net/EMBTI/j6drucker.html Lutzenberger, T. (2013). Government regulations of airlines. Retrieved from http://www.ehow.com/about_6472403_government-regulation-airlines.html Yusoontorn, S. (2011, March 1). 25 management lessons from peter drucker. Retrieved from http://www.slideshare.net/bright9977/25-management-lessons-from-peter-drucker-7109567