pflugjindividualcorp

pflugjindividualcorp - Delta Airlines Individual Corporate...

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Delta Airlines Individual Corporate Action Analysis MKT 650 Jeremy Pflug Marketing Plan A. Market situation Worst economic period since the Great Depression. Less “leisure” travelers because of the economic crisis.
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Airline industries been in the “red” in the profit column every year since 2001. (McCabe, 2009) Current February traffic results posted 6.1 decreases in capacity. (Delta, 2010) Security issues which have consumers worried about if they should risk flying. TSA was given an overall grade of “C” in a recent “Annual Report Card” by Homeland Security. (McGee, 2008) Rising jet fuel cost increase the cost of airlines tickets which effect the amount of tickets being sold and causing a reduction in flights flown. (Reed, 2006) B. Competitive Situation There are eight major U.S. airlines with Delta being the flagship carrier of the U.S. with the new acquisition of Northwest Airlines. Continental and United Airlines are in current discussion for a merger which will allow them to surpass Delta in the United States. With the rise in the jet fuel costs and the increase in airlines tickets, many consumers are seeking the
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lowest fare possible, which benefits smaller carriers with fewer routes. Delta recently acquired a partnership with Japan Airlines and is seeking permission to build an international hub in Japan. This will boost the sales, routes and loads of passengers for Delta. Asia-Pacific region moved past North America to become in the world’s largest aviation market in 2009. (Chu, 2010) C. Macro environmental situation Recent natural disasters and snow storms have cancelled everyday flights to Haiti, Peru, and caused many passengers to cancel plans and be returned a full refund. In February alone, many major airlines were posting 20-30 million dollar losses due to flight cancellations. (Loyd, 2010) Recent economic struggles have forced “leisure travel” into a steady decline and have caused major losses in passenger load and revenue.
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Rising fuel costs have affected number of flights that occur daily. The lack in flights has caused the major decrease in revenue and passenger loads. D. Past product performance Airlines have seen a steady decrease in profit since 2001. Before then, airlines were posting billion dollar profits collectively. In 2005, Delta filed for Chapter 11 bankruptcy after
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This note was uploaded on 08/28/2011 for the course BUS 600 taught by Professor Thomas during the Spring '11 term at Morehead State.

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pflugjindividualcorp - Delta Airlines Individual Corporate...

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