Delta A

[pic] 9-704-403 REV : JA NU AR Y 25, 2005 J A N W . R I V KI N L AU RE NT T HERIV EL Delta bearing Lines (A): The Low-Cost mailman Threat The most dangerous rival we face is not United. Its not American or Northwest or Continental. Its affordable competition from companies desire JetBlue or Southwest. Leo Mullin, Delta Chairman and chief Executive Officer1 In March 2002, a cross-functional line of work jam convened at Delta charge Lines headquarters, on the grounds of Atlantas Hartsfield International Airport. motley fool B all toldoun, vice president of corporate strategical proviso and one of three team leaders, explained the situation: The contend of affordable competition from carriers like Southwest and JetBlue had been building for years. We had been flavour at the problem for a long time, but because Delta is organize by function, solutions focused on individual parts of the company. The exchange organization pro vided marketing ideas, the customer service organization offered customer service ideas, and so forth. We didnt have a blanket(prenominal) response to low-cost carriers [LCCs] across functions, and pressure from the plank make it clear: we needed one. We promised the board we would propose an LCC strategy at their July meeting.

2 With four months left ahead the board meeting, the task force considered Deltas options. Among the options on the slacken was the possibility that Delta would found its own low-cost subsidiary. Nearly all of the major airlines, including Delta itself, had launched such(preno minal) subsidiaries in the recent past. A! lthough airlines rarely revealed the financial results of their subsidiaries, industriousness observers theme the low-cost efforts launched to date were either failed experiments or unsustainable over time. Weve never seen a high-cost carrier transform itself into a low-cost carrier, verbalise Darrel Jenkins, director of the Aviation Institute at George Washington University. Theyll composed be a high-...If you want to get a skilful essay, order it on our website: BestEssayCheap.com

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