Delta Case Study

Topics: Delta Air Lines, Airline, Northwest Airlines Pages: 14 (3174 words) Published: October 13, 2014

[Document title]

MGT-432

November 26, 2013

Executive Summary
Delta airline has a long history whose roots begin at the year 1924.This airline has grown to become one of the largest airlines serving the United States of America and also majority of the world through its international routes. The aim of this paper is to see the history of the airline together with its financial position with concentration on the various strategies the company has implemented to reach where it is right now. The paper will also include various suggestions to the airline to help it to grow further. Delta airlines began in the year 1924 but during that time it was known as Huff Daland Dusters. This was the first aerial crop dusting which had its headquarters in Georgia. The following year, the company moved its headquarters to Louisiana. The directors of the company were B.R Coad and Collett Woolman.Huff Daland went on its first international route and that was to begin its services in Peru which brought in enough money and increase in purchasing power. The year 1928 gave birth to what is known as Delta Airlines today. Furthermore, the year 1930 came with a major setback to the airline. Delta failed to secure a commercial airmail contract and therefore suffered major losses which forced the airline to suspend passenger service. As time went by, the year 1934 seemed to be the year for Delta Airlines as they secured a low-bid contract for the new Route 33 airmail service between Dallas and Charleston, South Carolina, via Atlanta .The airline also resumed passenger services that year. The following years were very successful periods for Delta airlines as it managed to spread its wings to various states around the United States and it also managed to purchase airlines such as Chicago airlines and Southern Air Airlines. As the jet era began, Delta Airlines added jetliners to modernize their fleet and fleet in the 1960s, following the purchase of the Douglas 8 that entered service in 1959. The same year also provided a new image for Delta as it redesigned its logo to what is present today. In 1970, Delta became an all jet airliner. The airline continued buying out its competitors and this time it was North East airline that was purchased in the year 1972. The great reign of Delta Airlines reached another milestone in the year 1975 when the launched the first airline called Delta Air Express which guaranteed air express service with high priority and guaranteed cargo services. As the deregulation act came into place, Delta launched its first transatlantic flight from Atlanta to London under the leadership of the new CEO David Garrett which followed another expansion to Frankfurt the following year. In 1979, Delta celebrated its 50th year of service with flights to Frankfurt and it became the first airline to board one million passengers in one city in one month. In addition to the above achievements, the 1980’s brought mixed feelings at the company. With the development of computers, Delta managed to begin computer based reservation systems and launch its first frequent flyer program. But the airline suffered losses in the year 1982.Employees then took payroll deductions to raise about $30 million to purchase the company’s first Boeing 767 which was named “The spirit of Delta” in 1982.Between the year of 1984-1987, Delta merged with several regionals and partnered with some to increase its services to Hawaii. It also became the fourth largest carrier in the U.S and fifth in the world with its services to Portland, Oregon and Tokyo in 1987 under the new chairman and CEO; Ronald Allen. The airline expanded its operations to Asia in 1988. As Delta Airlines continued soar higher, the year 1991 was no different. The airline purchased all of Pan-Am’s Trans-Atlantic routes and shuttles hence making it the largest acquisition of flights in airline history and also making Delta a global carrier. Apart from making...


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