Delta Airline Business Operations

The assignment content discusses the Delta Airline company, its management team and leadership committee, business operations, financial strategies, human resource management, core competencies, qualitative factors, competitive advantage, vertical integration, and strategic alliances. The airline is USA-based but operates globally, with a focus on regional flights. Its major goal is to increase business operations and offer more comfort services to customers. Delta Airline has a strong presence in the domestic market and generates most of its revenue from there.

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1. Following is the list of the top management team and leadership committee:
Chief Executive officer – Ed Bastian- the role and responsibility is focus on customers, culture
and inspire to innovation
Chief operation officer- Gil west – provide safe and reliable operation globally
Chief financial officer – Paul Jacobson - To develop financial strategies in the Delta Airline
Chief human resources officer – Joanne Smith – She is the executive vice president. Her
leadership is to develop unique work culture and employee engagement within the airline.
2. The Delta Airline is the USA based company. The firm conducts its operation across the
globe; however, generate more of its profits from the regional flights. The company enjoys a
monopoly in the domestic market and cover more than 60% airline operations in the USA
(Drakos, 2004). At its five most critical hubs—Atlanta, Detroit, Minneapolis, New York, and
Salt Lake City where the company offers low-cost service in the region.
3. The major goal of the company is to increase its business operations and also offer more
comfort service to customers. Most of the company’s services are customers oriented. In the
long-term business, the major challenge for the company is to maintain its presence at the global
level. There are some other Airlines such as Qatar and Emirates airline.
4. Most of the company’s services are based on low cost flights. In order to expand the business,
the Delta Airline purchase old Aircraft, especially narrow-bodies. The oldest aircraft in the fleet
are the McDonnell Douglas MD-88s, with an average age of over 25 years (Morrish and
Hamilton, 2002). However, after the increase in demand for longer and safer planes, the
company seeks towards purchase of the Airbus and Boeing. These strategies are based on

intended strategy because the company opts these options after creating joint venture with
different companies.
5. The Airline Industry is not very dynamic in nature. The business environment of the company
is based on slow changes. In order to compete in the market, the company is moving the low cost
to high-class onboard amenities. In 2016 April, the company add a Premium Select option in its
flight service and also added Airbus A 350 and Boeing 777.
6. The company is belonging to the airline industry so most of the assets of the company
belongs to the airline. The main components of tangible assets are the Aircrafts such as Boeing
777, Airbus feet and the other property and spare parts of aircrafts. The list of intangible assets
include leasehold rights of airports owned gates. After acquisition with other company, the
goodwill is the example of intangible assets.
7. The core competence of the company help to grow the business. In the Delta airline, the core
competencies are its Human resource management and the strong financial background (Lou,
2014). By merging with the different other airlines and integrating with their skills, the
organization helps to expand its business and gain a competitive advantage over its competitors.
8. There is a different factor which leads a company towards success. Most of the company
revenue is generated from the domestic market. The company has a monopoly by merging with
different airline companies. In addition, as per the company’s accounts, the total revenue
generated by the company is US$ 39.639 billion. In the Qualitative factor, the company has good
relationships with employees and customers. The company is fully focused on customer-oriented
services.

9. In order to gain competitive advantage, the company is more focused towards the economic
and shareholder perspective. In the economic, the company tries to expand in different regions
and also offer low-cost airline service. In addition, through the low-cost service and merger with
different airline industries the company also provides more satisfactory results to investors.
10. Apart from the low-cost business services, the customers also look for the safety, quality and
onboard service (Spivey, 2016). The company needs to make improvement in its onboard
service. The management needs to provide more luxury and comfortable service to the
customers. In addition, the company also needs to build a strong relationship with the unions and
employees as well. So, they can retain long-term success in the business.
11. The vertical integration refers to expanding the business in the similar line of expanding the
business with a similar product. The Delta airline is highly integrated into nature (Spivey, 2016).
By merging with the different airline company, the company is continuously expand its business.
12. The Delta airline is the world’s oldest company. In its vertical value chain, the company
chose its business strategy very carefully. In the analysis of the company’s value chain, the
company is more concerned about their cost leadership strategies (Park, 2014). The company
wants to compete on the basis of cost. The airline company has good control over the customize
product and innovate vertical value chain products.
13. Three years age, the company made a joint venture with the Air France KLM. The Delta
airline company bought 10% holding in the company. Through this merger, the company is also
expanding its service in the Europe. This strategy helps to gain a competitive advantage in
business because the European market is quite large and have the potential customers.

14. In the last three years, the company has two main strategic alliances which is with the Virgin
Atlantic and with Air France KLM. In the Virgin Atlantic, the company bought 49% total share
and in the Air France KLM the company bought 10% share (Morrish and Hamilton, 2002). In
both joint venture, the company shares their cost and revenue from the flight which is operated.
15. The strategic alliances of Delta airline become successful (Luo, 2014). Through this strategic
alliance the company makes effective growth in the international market such as Europe, UK and
the North America. The program coordinates transatlantic operations, including ticket pricing,
schedules, capacity, and revenue. This strategic alliance gives major competitor advantages to
the company and gain more customers at the global level

References
Drakos, K. (2004). Terrorism-induced structural shifts in financial risk: airline stocks in the
aftermath of the September 11th terror attacks. European Journal of Political Economy,
20(2), pp.435-446.
Luo, D. (2014). The price effects of the Delta/Northwest airline merger. Review of Industrial
Organization, 44(1), 27-48.
Morrish, S. C., & Hamilton, R. T. (2002). Airline alliances—who benefits?. Journal of Air
Transport Management, 8(6), 401-407.
Park, S. (2014). A merger effect on different airline groups: empirical study on the Delta-
Northwest merger in 2008. Journal of Transport Literature, 8(2), 73-99.
Spivey, D. (2016). Conservation Force Et Al. v. Delta Air Lines: The Legality of an Airline Ban
on Big Game Hunting Trophies. DePaul J. Sports L. & Contemp. Probs., 12, 108.