Detailed Look at Delta Air Lines

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By the middle of the 1990's, Delta had service in 44 countries and more than 323 cities. Profits had finally returned to Delta after several years of heavy losses. Losses had piled up during the early 1990's leaving Delta swooning with debt. Expansions into Europe, world recession, competition, and managerial inefficiencies all played a large role in these losses. Still, the third largest U.S. carrier was looking for further growth outside of the domestic market . Market share in the global market was very important. Competition during the early 1990's was extremely fierce and even late in the decade remained very strong. Delta's recovery into the middle and late 1990's is still scarred by the heavy losses which the company suffered. As a result, Delta has been forced to keep a close eye on costs while attempting to keep up with the changing airline industry. History Delta's beginning came over 74 years ago in Macon, Georgia not as a commercial airline, but as Huff-Daland Dusters, the first crop-dusting company. In 1925, they moved to Monroe, Louisiana. Only 3 years later, in 1928, the company was bought out by C.E. Woolman and renamed Delta Air Service after the Mississippi Delta region in which it was located. Passenger services were initiate in 1929 and by 1934, Delta received a US Postal Service contract. By 1941, Delta moved to Atlanta to support the postal contract and use Atlanta as its main hub. Woolman was elected president of Delta in 1945 and remained with Delta until he died in 1966. Delta continued to add routes and flights. They purchased Southern and Chicago Airlines in 1952 adding routes from New Orleans to Chicago. &nbs... ... middle of paper ... ...attempt to continue to make alliances, but not invest significant additional amounts of capital in Europe. Delta's strong reputation for quality and fair prices will help lead them into the 21st century. However, their high debt level and competitive industry leave many uncertainties to their future. Although they are a global leader, they have many competitors on each continent. By continuing to advertise and increase their worldwide recognition as a quality airline they can increase their market share. They have a large piggy bank and can use that to their advantage. Their losses in the early 1990's should continue to remind them to keep costs low and quality high. Delta is respectable company and a market leader. By continuing to expand they can continue to reduce their debt and make a head start in the airline industry.
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