SWOT Analysis of Delta Airlines

{ Posted on Aug 23 2011 by adam | 5,465 views}

Delta is an airline company which offers different facility to the customer like passenger travels cargo services. The company maintain lowest price thought USA and around the world.

Delta Airline Strengths

• Delta Airline has third biggest carrier, which are

a. It establish its name
b. The company has best reputation in the market.
c. The company very well known name in the market.

• Delta achieve three DOT’s stop at a time in the past three years, which means that it facilitate the customer in the field of baggage, handling, and satisfy the customer in a very well manner.

• Now a day’s Delta has announced one of the cheapest airline services in East named as Song. The cost of which is almost 8 cent per seat mile.    

• Delta Air line is now joining with major air airline companies around the world known as Sky Team.

• Due to the joining with Sky Team the company cost on different services become much lesser as they share different cargo and passenger services with each other.

• Delta Airline has developed one of the leading airport design which include the design of its lobby and increase in its service technology, it also improve its customer service which helps the employees to help and deliver the customer and response quickly.            

Delta Airlines Weaknesses

• One of the weak points of Delta airline is the cost of their labor although the company provides easy and cheap service but still the company cost of the employs is very high. The total coat of the employee is about 36 to 40% of the total expenses.

• A long with labor expenses Delta also facing the expenses of the pilots in this quarter which is about $140 million.

• The company share was decreased from 17.4% to 15.1% form the duration 1993 to 2003.

Delta Airlines Opportunities  

• As in airline market the demand of the jet is increasing this means the company having low price and facilitate the consumer will grow up. According to the survey conducted by CNN that there will be 50% increase in the air traffic thus the company has already good opportunity to catch more customers as it has kept the price low.

• Delta has already owns two partially online service for reservation

• Delta Airline also has the ownership of 18% of Orbizt. LLC, which is a travel agency offering travel services to the consumers and business on internet.

Delta Airlines Threats

• The company is effected a lot from 9/11, due to which the security expenses increase, but still there need a lot of other equipment for security purposes.

• According to IATA (International Air transport Association) in 2001 the loss of international airlines is about $ 18 million which decrease $13 million in 2002 but still it is a big loses. This is way form the last two year the two biggest Airways has force to bankruptcy by US Govt.

• The company is not been recovered from 9/11 till 2005. 

References

• Banstetter, T. (2003, Nov. 13). Spike in Delta Airlines Pilot Retirements Will Widen Fourth-Quarter Loss. Knight-Ridder Tribune Business News.

• Banstetter, T. (2003, Nov. 21). Delta to Launch Its Own Discount Airline. Knight-Ridder Tribune Business News.

• Corridore, Jim. (2003, Sept. 25). Standard & Poor’s Industry Surveys Airlines. New York: The McGraw-Hill Companies.

• Ehrhardt, Michael and Brigham, Eugene. A Focused Approach: Corporate Finance (pg. 173)

• Holloway, Stephen: Airlines- Managing to Make Money.

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