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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