Delta Case Analysis
Identify the important facts surrounding the case
Delta does business globally in 503 cities in 94 countries and is the third largest airline in the United States. In 2003, Delta 's daily needs included 7.3 million gallons of fuel, 109,000 meals and snacks, 151,000 bottles of water, 87,000 cans of soda, and 219,000 pounds of ice. Its daily operations also required large amounts of information relating to such areas as flight schedules, gate information, baggage handling, customer service, and tower operation. To be competitive in the airline industry, Delta required an efficient flow of operations. However, accurate advanced planning is nearly impossible because of such elements as changing economic realities and weather conditions, and unexpected maintenance issues.
Delta Air Lines operates in a competitive industry. Amongst its competitors, its two largest were American Airlines and United. To survive in the industry it was necessary to employ and maintain technologically efficient and cutting edge systems. However, Delta systems of operations were mainly paper based; they still used pneumatic tubes to move information and they made little use of the internet. As a result, the company lacked a competitive edge. The technology it had was based on various departments independently purchasing the technology they needed and hiring their own IT staff. In 1996, Delta was still known for its expensive airfares, poor service, limited leg room on flights and use of out-dated inefficient processing systems.
The airline industry became increasingly competitive with the arrival of the low-cost carriers, such as, JetBlue, Southwest, and Airtran. These competitors were taking customers away from the major airline companies. Delta projected that 40 percent of their customers chose low-cost carriers, which was a higher percentage than any other airlines. During 2002, 80 percent of Delta 's New York to Florida market was taken away by JetBlue. Eventually, Delta 's monopoly
Delta does business globally in 503 cities in 94 countries and is the third largest airline in the United States. In 2003, Delta 's daily needs included 7.3 million gallons of fuel, 109,000 meals and snacks, 151,000 bottles of water, 87,000 cans of soda, and 219,000 pounds of ice. Its daily operations also required large amounts of information relating to such areas as flight schedules, gate information, baggage handling, customer service, and tower operation. To be competitive in the airline industry, Delta required an efficient flow of operations. However, accurate advanced planning is nearly impossible because of such elements as changing economic realities and weather conditions, and unexpected maintenance issues.
Delta Air Lines operates in a competitive industry. Amongst its competitors, its two largest were American Airlines and United. To survive in the industry it was necessary to employ and maintain technologically efficient and cutting edge systems. However, Delta systems of operations were mainly paper based; they still used pneumatic tubes to move information and they made little use of the internet. As a result, the company lacked a competitive edge. The technology it had was based on various departments independently purchasing the technology they needed and hiring their own IT staff. In 1996, Delta was still known for its expensive airfares, poor service, limited leg room on flights and use of out-dated inefficient processing systems.
The airline industry became increasingly competitive with the arrival of the low-cost carriers, such as, JetBlue, Southwest, and Airtran. These competitors were taking customers away from the major airline companies. Delta projected that 40 percent of their customers chose low-cost carriers, which was a higher percentage than any other airlines. During 2002, 80 percent of Delta 's New York to Florida market was taken away by JetBlue. Eventually, Delta 's monopoly