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SU MBA5004 W2 A3 Ayala I

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SU MBA5004 W2 A3 Ayala I
APA Format Template (6th Edition)
Ingrid Ayala
MBA5004 S02
South University Zhenhn Jin The longest-running airline carrier, Delta Air Lines began in 1924 as a crop-dusting company called Huff Daland Dusters. Delta has since become a world leader in providing efficient, on-time air travel. Since 1941, the company has been based in Atlanta, where Hartsfield-Jackson International Airport serves as its largest domestic hub and primary base for flights to over 57 countries. The airline also operates four other hubs in major U.S. cities, notably Los Angeles which it has recently reestablished. Depending on which measure is used, Delta is either the second or third largest airline in the world.

Due to competition from low-cost airlines, the negative effects of 9/11 on travel and skyrocketing fuel prices, the company held over $20 billion in debt as of Sept. 2005 and declared bankruptcy. Delta was able to emerge from bankruptcy in 2007, achieving profitability that same year. In April 2008, Delta announced its intention to purchase Northwest Airlines; the two companies combined would create the world 's largest airline.

In recent years, the airline industry in the international realm and in the domestic arena has seen its fair share of turbulence. With rising jet fuel prices and increased competition, the industry is as competitive as ever. Yet, with increasing consumer and business use of air travel, airlines are finding themselves scrambling for identification that will set them apart from the rest. The eight factors that influence and determine the returns an airline receives are represented by the competitive forces model

When looking at the model, several premises show through with an underlying explanatory analysis of a specific industry. Factors that include fuel, labor, costs, events, and even seasons influence the industry competition and how competition is rendered in the forces model. Identifying specific competitors can significantly reduce



References: http://www.investopedia.com/terms/r/returnonassets.asp http://web.mit.edu/airlinedata/www/Revenue&Related.html http://images.delta.com.edgesuite.net/delta/pdfs/annual_reports

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