Delta Airlines Case Study

1. In April 2008, Delta Airlines announced its intention to merge with and absorb Northwest Airlines, formerly known as Northwest Orient. Delta Airlines had already grown through the acquisition of Northeast in 1972 and Western Airlines in 1986. Northwest was also a large airline, having absorbed Republic Airlines, itself a merger of North Central Airlines, Southern, and later Hughes Air west. Republic had an important hub in Memphis, as did Federal Express. The result would be global airlines with hubs in Asia and Europe as well as across the United States. Will an enlarged Delta Airlines be a threat for FedEx?

FedEx will not be treated by Delta airlines because FedEx itself had their own experience and established more than a decade. They
This is because each of the customers has different type of requirements and demands. Federal Express should expand their forwarding capability; expand the services territory and also improving the cycle times. Federal Express also can provide shipment information to the customers in China. Not only that, Federal Express also should be more progressive in providing advance services to the customers so that can help to improve the customers loyalty and also able to attract a new customers. Secondly, Federal Express can hire local managers. This is because by hiring local managers, they are more understand the local culture of the local areas in order to avoid disturbing inherent values and practices. Every different country has a different culture and procedures, by having a person that more familiar with the culture it will help Federal Express in determining the sensitiveness of China citizens. Thirdly, Federal Express also need to choose an airport for the expanding their business environment of the Pearl River Delta which serves 40% of the China’s export volume. By concurring all the airports in China, it will allow Federal Express to increase the capacity of the business. This is showed by China has been making substantially investment in their infrastructure include the port facilities, airports and cargo terminals.
Related issues, applications for unemployment benefits fell last week and this indicates that moderate job growth. However, FedEx Corp reported quarterly earnings that were higher, although profits were affected by higher fuel prices and severe winter weather. This issue should be addressed by FedEx. The increases in crude oil prices also raise the cost of the company not only because of high energy prices, but also because of higher costs for raw materials and labor. This is because many companies are not able to survive along higher costs in an increasingly competitive global economy. These companies have no choice but to cut costs, which often means cutting jobs, closing plants or merge with rivals to reduce competition.In addition, the issue price of crude oil is also noteworthy because it is to some extent will affect the delivery of goods to be carried out. For example, crude oil is widely used for filling vehicles for delivering goods such as airplanes, trucks and so on. This will increase the cost to be borne by