Delta Air Lines Term Paper Example | Topics and Well Written Essays - 2500 words

Delta Air Lines - Term Paper Example Today the company consists of a fleet size of 722 different passenger and cargo aircraft as well as more than 80,000 employees working across the world. Company has its major assets at eleven airports and its 247 aircraft operate at 247 international routes (Delta Stats and Facts). By the end of 2011, Delta Airline was enjoying a net income of $854 million with its total assets around $43.49 billion (Delta Airlines Annual Report, 2011). After five years of operations, Delta Airlines got a contract from United States Post Office. This contract made the company to shift its major set up from Georgia to Dallas. The company shifted from Atlanta (Georgia) to Dallas on 5th August, 1934 and after seven years returned back to its parent city. With the passage of time, Delta Airline followed on growth strategy as in 1953, it acquired Southern Airways and Chicago. In 1972, it did acquisition with Northeastern Airlines as well therefore; it expanded its routes to get an edge over its competitor s. Delta Airlines executed its growth strategy quite well till the end of 1970s. Due to transporting of more than 3.3 million passengers in 1978, the company was ranked No.3 in the industry; however, the same year US government enforced the Federal Airlines Deregulations Act of 1978. The act put a negative impact on Delta Airline and some other dominating companies and therefore set a base for Low Cost Carriers (LCC). Moreover, the airline industry was serenely affected by several factors in 80s and 90s. These factors included global recession of early 80s, rising fuel prices towards late 80s, and first gulf war in early 90s. Delta Airlines also affected by these, however, its strong management and infrastructure made it again at No.3 in position in the airline industry. This year it took around 67.2 million passengers to their destinations in different parts of the world. The company also generated revenue of about $8.5 billion. Along with its successful growth, one of the biggest achievements of the company is its employee reward system which enabled the company to maintain a high employee retention rate. CULTURE According to a survey conducted by J.D Power, Delta Airline has been recognized as the 2nd best airline company with respect to customer service. In 2009, the company won three awards of ‘Business Traveler Magazine’ for the fourth consecutive year. These awards were given in the categories of ‘Best Airline Web Site’, ‘Best Frequent Flyer Program’, and ‘Best Airport Lounge’ (PR Newswire). Due to its vast experience in air operations, the company has created warms relations among its employees that have great retention as well as loyalty with the company. For example in 2006, pilots of the company got themselves away from a probable strike by accepting a deal with the organization in terms of their salary and other package. This willingly accepted agreement not only enabled the company to save about $280 million per year but also kept it firm with its routine operations. CURRENT OPERATIONS By April 2010, the