Delta Airlines Domestic Environment
Domestic Environment – Delta Airlines
Business Theory
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 …show more content…
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. National security is first and foremost. They have the right to enforce background checks of ticket buyers, search luggage, use X-ray and chemical detection on passengers and their belongings, and have air marshals on flights for law enforcement. The Federal Aviation Administration (FAA) is also involved with regulations. Planes are tracked with FAA logs. Maintenance service and rebuilds are required after so many hours of use. The FAA carries out regular inspections and reviews to ensure the airline is reliable with the safety and maintenance requirements. All airlines fall under regulation of U.S. Securities and Exchange Commission and the FBI. They are involved with matters on business violations and criminal business activity. Both agencies can start investigations if needed (Lutzenberger, …show more content…
If they want to stay successful they have to follow the regulations. There is a growing level of concern when it comes to United States privacy of passenger data. Various European government agencies want to induct inquiries into airline privacy practices (Lutzenberger, 2013). Compliance with these regulations can result in added operating costs and potentially impact further expansion. When it comes to regulations that are in foreign countries and not consistent with the United States, there could be some compromise. According to Peter Drucker, you have to first know what is right to make an effective decision and to not worry whether it is right or if anyone will like that decision (Yusoontorn, 2011) . The people that ultimately make the final decisions need to "make productive the specific strengths and knowledge." Think of the end result. For example, will providing regulations on the congestion issues in Northeast airports impact cost for the airlines that operate there? Yes it will, but ultimately the focus should be on the customers that travel to and from these airports. Peter Drucker says "the primary function of a business is serve the customer and the primary goal of your business is to create customers” (Yusoontorn, 2011). Regulations on congestion will help to make people want to travel to and from these airports and can
Business Theory
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 …show more content…
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. National security is first and foremost. They have the right to enforce background checks of ticket buyers, search luggage, use X-ray and chemical detection on passengers and their belongings, and have air marshals on flights for law enforcement. The Federal Aviation Administration (FAA) is also involved with regulations. Planes are tracked with FAA logs. Maintenance service and rebuilds are required after so many hours of use. The FAA carries out regular inspections and reviews to ensure the airline is reliable with the safety and maintenance requirements. All airlines fall under regulation of U.S. Securities and Exchange Commission and the FBI. They are involved with matters on business violations and criminal business activity. Both agencies can start investigations if needed (Lutzenberger, …show more content…
If they want to stay successful they have to follow the regulations. There is a growing level of concern when it comes to United States privacy of passenger data. Various European government agencies want to induct inquiries into airline privacy practices (Lutzenberger, 2013). Compliance with these regulations can result in added operating costs and potentially impact further expansion. When it comes to regulations that are in foreign countries and not consistent with the United States, there could be some compromise. According to Peter Drucker, you have to first know what is right to make an effective decision and to not worry whether it is right or if anyone will like that decision (Yusoontorn, 2011) . The people that ultimately make the final decisions need to "make productive the specific strengths and knowledge." Think of the end result. For example, will providing regulations on the congestion issues in Northeast airports impact cost for the airlines that operate there? Yes it will, but ultimately the focus should be on the customers that travel to and from these airports. Peter Drucker says "the primary function of a business is serve the customer and the primary goal of your business is to create customers” (Yusoontorn, 2011). Regulations on congestion will help to make people want to travel to and from these airports and can