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Wednesday, May 14, 2014

Delta Airline’s Map To Success And Its Following





The first and foremost thing to understand or to know is about the transition of Delta in the last decade as in its very first quarter, the revenue of the company per Available Seat Mile (ASM) was almost seven points higher than the average of the airline as many people used to travel in Delta while today, the premium revenue that Delta gets is 107 percent. In 2005 before Delta sought bankruptcy protection, on per Available Seat Mile it was having revenue of 86 percent of that of industry’s average.
The company was gaining success step by step and in the very first quarter of 2007 the executives of Delta were pleased to announce that the Revenue on per Available Seat Mile was increased from 86 percent to 96 percent of that of Industry’s average, within 2 years. After all, the company was finally able to emerge from the bankruptcy protection on 30th of April 2007.
This made the success of Delta a unique success while in case of all the other major airline bankruptcies they become successful only in the first decade, which allows the companies to restructure them profitably. As bankruptcies led a company to primary labor cost cutting, it allows the final step of post deregulation and consolidation to work out and lastly it also led to all types of cost cutting.
However, by emerging out of bankruptcy in only 2 years Delta has shown its true success following the success map, which it had created. With all these success DAL (stock symbol of Delta Airlines) has increased its stock share price, which can be seen in the stock chart of DAL.

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