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Delta Airlines and how it uses international finance to pay, buy and sell around the world.
Finance & Accounting
Pages 7 (1757 words)
Finance and Accounting Name of the Student University Table of Contents 1 Table of Contents 2 2 Delta Airline 3 Management of Income and Expenses 3 Selling of Tickets 5 Employee Payroll 6 Rent 6 Government Fees 7 International Operations 7 Financial and Operational Risks 8 Reference 10 Delta Airline Delta Airlines started its operation in the year 1925 as the world’s leading privately owned airlines.
After its merger in 1972 with Northeast Airline, they opened new routes for its operation from New England and New York to Florida. As measured in operating revenue, Delta Air Lines became the third leading domestic passenger carrier after its merger in 1987 with Northeast Airlines. Delta Air Lines got its global reach after acquisition of its transatlantic routes. In the year 2002, they became the second largest passenger carrier in terms of number of passengers flying and third largest in terms of revenue (Rivkin & Therivel, 2005). This study focuses on the ways in which the company manages its various operations. Management of Income and Expenses Delta Air Lines pays their employees in home currency, whereas the other expenses like supplies, rent and landing fees are paid in local currency. Again fuel which is a major expense in airlines industry is paid in dollars. The main challenge for the company is to adjust the income and expenses while operating in different currencies. While operating in several international markets that deals in different currencies, ‘Currency Risk’ is the major risk to which the company is exposed to. This is specially a major issue for the airline industry in which the companies incur cost in one currency while they receive income in a different form of currency. ...
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