Southwest Case Analysis

TO:Mr. Richard Anderson, CEO, Delta Airlines FROM:Mr. XYZ DATE:February 7, 2012 ------------------------------------------------- SUBJECT:Possibility of launching new force out mienline Dear Mr. Anderson: As per your request, I have analyzed the casualty of launching new reject airline program for Delta Airlines. I recommend not launching a new cut airline at this clip. Please find below my comments somewhat the recommendations. Airline industry is a growing industry, and it is central to the globalization of many other industries, nevertheless rising operating be have been a major concern for this industry. Extremely eminent fixed-cost structure of airline industry provides with very limited opportunities in cost reduction. Environmental and economic changes also affect lucrativeness of airline industry. Volcano eruption in Iceland (2010), 9/11 terrorist attack, or the recent protest in Egypt has affected air traffic radically. The oil price hike in 2008 caused crucial industry losses. Such external forces are now changing course of airline industry towards low-cost and low-fare industry. For any discount airline, low ticket price and faster turnaround time are important factors rather than emphasis on senior high pure tone customer service.

Delta has always distinguished itself with high whole tone service to business class and first class travelers. Delta was be No. 1 in Fortune magazines listen of the worlds most-admired airlines and also won the Business Travel intelligence information Annual Airline Survey, marking the first time Delta worst all other carriers in the contests 14-year history. Delta has competitive reward due to services that includes the SkyMiles frequent flier program, the worlds largest airline loyalty program; the award-winning BusinessElite service; and much than 50 Delta Sky Clubs in airports worldwide. Due to the high quality service, Deltas load factor (81%) is higher than Southwest but cost/ASM is higher (Please see Exhibit 1). To reduce... If you want to bushel a full essay, order it on our website: Ordercustompaper.com

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