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 glow 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 analogous JetBlue or Southwest. Leo Mullin, Delta Chairman and chief Executive Officer1 In March 2002, a cross-functional chore jam convened at Delta occupation Lines headquarters, on the grounds of Atlantas Hartsfield International Airport. put B all toldoun, vice president of corporate strategic proviso and one of three team leaders, explained the situation: The repugn of affordable competition from carriers like Southwest and JetBlue had been building for years. We had been looking for at the problem for a long time, but because Delta is unionized by function, solutions focused on individual parts of the company. The exchange organization provided marke ting ideas, the node service organization offered customer service ideas, and so forth. We didnt have a citywide response to low-cost carriers [LCCs] across functions, and pressure from the plank do 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 propel its own low-cost subsidiary. Nearly all of the major airlines, including Delta itself, had launched much(prenominal) subsidiaries in th e recent past. Although airlines rarely r! evealed the financial results of their subsidiaries, industriousness observers purview the low-cost efforts launched to date were either failed experiments or unsustainable over time. Weve neer seen a high-cost carrier transform itself into a low-cost carrier, speak Darrel Jenkins, director of the Aviation Institute at George Washington University. Theyll unflustered be a high-...If you want to get a serious essay, order it on our website: BestEssayCheap.com

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