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Delta Airlines - Research Paper Example
Author : beckermargarett
Finance & Accounting
Pages 7 (1757 words)
Delta Airlines started its operation in the year 1925 as the world’s leading privately owned airlines. Delta Air Lines was founded by C.E. Woolman, who started the movement in the year 1929 by buying Huff Daland. This study focuses on the ways in which the company manages its various operations. …
This paper stresses that there are a number of facilities that are provided by the airport where the airline operates. The airport looks for increasing their total income from commercial sources that creates both concession fees and rents. The rental income arises primarily by renting and leasing the space either directly or indirectly to the airport users like the handling agents, freight forwarders and airlines. On the other hand, concession fees are payment made by the service providers to the airport authority. Delta Air Lines that is operating in various countries also pays rent to the airport authority for using their space. The rent that the airline pays depends upon the area occupied by the company and the number of facilities operating in the airport.
This essay makes a conclusion that the international operations of the company are subjected to competition from both foreign and domestic carriers. In such a scenario, the airline in order to operate profitably has entered into alliance with foreign carriers in which they have implemented code sharing and marketing agreement that in turn will increase the ability to sell international transportation and go beyond the traditional gateway cities like Asia and Europe. At the same time the other airlines that have entered into alliance has also benefitted from the alliance by entering into US market. Apart from this, the company is also heavily dependent upon technology for their day to day operations. ...
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