Delta Air Lines Case Study Strategy

Introduction Delta Air Lines is one of the many airlines in this industry that is trying to make profit in this competitive industry. A slow recovery from bankruptcy forced many of the U.S carries to join with other airlines in order to continue in this business. Like many airlines in this industry Delta Air Lines has been operating off a hub and spoke system. Having to place different hubs all over the country allows the company to efficiently provide scheduled air transportation for its passengers and cargo throughout the states and the world. Delta’s global route network and strategically placed hubs in different parts of the world allows them to make profit domestically and internationally. The company’s network is centered on a system

Competing with not only with domestic carriers but also with foreign carriers, Delta Air Lines has to do everything possible in order to win the business. Well-funded airlines in the Gulf regions like Emirates, Etihad and Qatar Airways who increase their services to the United States from their hub in Middle East make it impossible for domestic carriers like Delta to stay in profit ("DAL 12.31.2014 10K," n.d.). Furthermore, these international carriers who are either funded or supported by the government are able to purchase the newest wide body aircrafts. Having a newest fleet amongst its competitors pleases the customers and helps save more fuel on the long haul international flights saving the company money on fuel and increases the customer service at the same

One of the first steps that the company has done was relocate their passengers from terminal 2 to terminal 1 at the Shanghai airport. Doing that allowed Delta’s passengers along with Shanghai and China Eastern passengers to have much smoother connections meanwhile enhancing customer service. As of July, 2015 Delta has added a new network between Los Angeles and Shanghai, enhancing nonstop service between China and the U.S ("Delta and China Eastern solidify strategic partnership Delta News Hub," 2015). Working together as SkyTeam members, all three airlines are able to expand their presence in the pacific. Furthermore, these companies are able to provide better customer service to their passengers by having more options and less stress free environment due to tough connections. Combined with its hubs and focus markets in Detroit, Seattle, Los Angeles and Tokyo-Narita, Delta will operate 28 weekly departures to Shanghai. ("Delta and China Eastern solidify strategic partnership Delta News Hub," 2015). In addition to that, having a Shanghai base allows all the partners to concur much wider territory outside of Shanghai. Their passengers will have access to purchase Delta’s tickets while flying from Asia and passengers that are traveling from U.S are also able to purchase tickets on Shanghai or China Eastern