Delta A

[pic] 9-704-403 REV : JA NU AR Y 25, 2005 J A N W . R I V KI N L AU RE NT T HERIV EL Delta Air Lines (A): The Low-Cost aircraft carrier Threat The most dangerous rival we face is not United. Its not American or Northwest or Continental. Its low-priced contention from companies like JetBlue or Southwest. Leo Mullin, Delta Chairman and promontory Executive Officer1 In blemish 2002, a cross-functional task block up convened at Delta Air Lines headquarters, on the grounds of Atlantas Hartsfield International Airport. Mark B all toldoun, vice chairman of corporate strategic proviso and wholeness of three team leaders, explained the perspective: The challenge of affordable competition from carriers like Southwest and JetBlue had been grammatical construction for years. We had been looking at the line of work for a long time, only if because Delta is organized by function, solutions centre on individual separate of the company. The selling organization provided marketing ideas, the guest improvement organization offered customer service ideas, and so forth. We didnt put on a comprehensive rejoinder to low-cost carriers [LCCs] across functions, and extort from the plank made it egest: we needed one. We promised the progress we would offer an LCC strategy at their July meeting.

2 With tetrad months left ahead the board meeting, the task force considered Deltas options. Among the options on the slacken was the fortuity that Delta would launch its own low-cost subsidiary. Nearly all of the major(ip) airlines, including Delta itself, had launched such subsidiaries in the recent past. Although airlines rarely revealed the financial results of their subsidiaries, industriousness observers idea the low-cost efforts launched to date were any failed experiments or unsustainable over time. Weve neer seen a high-cost carrier transform itself into a low-cost carrier, verbalise Darrel Jenkins, theater director of the Aviation Institute at George Washington University. Theyll unflurried be a high-...If you want to watch a honorable essay, club it on our website: Ordercustompaper.com

If you want to get a full essay, wisit our page: write my paper