Delta Airlines Restructuring Case Study
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Delta Airlines faced major financial crises and losses of $2 billion. The CEO decided to restructure Delta by implementing a plan to reduce costs. The restructuring plan included eliminating 6,000 to 7,000 workers, changing customer products and services, and addressing high labor, fuel, and legacy costs that were problems. The presentation recommended dealing with competition from low-cost airlines through advertising.
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Delta Airlines Restructuring Case Study
- 2. D E L T A AIRLINES PRESENTED BY ASHISH (42) AKASH (14) SUDHA (50) ANUJA (25)
- 7. M A J O R P R O B L E M S HIGH LEGACY COST HIGH FUEL COST
- 8. M A J O R P R O B L E M S THREAT OF COMPETITION WEAK RELATIONSHIP WITH THE TRAVEL AGENCY
- 9. MAJOR PROBLEMS THREAT OF COMPETION
- 10. RESTRUCTURING PLAN CUSTOMER PRODUCTS & SERVICES ADDING MORE FLIGHTS
- 11. RESTRUCTURING PLAN ELIMINATION OF 6000 TO 7000 WORKERS EMPLOYEE REWARD PROGRAMME
- 12. FLEET
- 13. SONG CULTURE
Editor's Notes
- GOOD MORNING TEACHERS & FRIENDS ITS MY HONOUR & PRIVELLIGE TO PRESENT THE PRESENTATION ON DELTA AIRLINES .IT VLL B PRESENTED BY MYSELF ASHISH SHAH ,AKASH,ANUJA & SUDHA.DELTA AIRLINES IS ONE OF THE BIGGEST AIRLINES IN THE UNITED STATES OF AMERICA.COMBINING NORTHWEST AIRLINES & DELTA AIRLINES SEVERS 66 COUNTRIES & 375 WORLD WIDE CITIES . IT ALSO SERVES 140 SMALL COMMUNITIES IN WHICH 48 DESTINATION IS SERVED BY NORTH WEST AIRLINES & 92 DESTINATION IS SERVED BY DELTA AIRLINES . NEW DELTA AIRLINES SERVED 375 GLOBAL DESTINATION.IT HAS A MAIN NETWORK IN NEWYORK,ATLANTA,SALT LAKE CITY,TOKYO,AMSTERDAM & MANY MORE COUNTRIES
- In the fallout following the events of 9/11, several major airlines filed for bankruptcy, including Swissair, U.S. Airways, United Airlines, and Sabena. Airlines struggled to reduce high fixed costs, and cost-cutting initiatives quickly followed apparent revenue decreases, as close to 15 percent of the industry workforce lost their jobs in the last quarter of 2001. In the six months after September 11th, close to 1,000 aircraft were grounded, and some companies had close to 50% reductions in both flight frequency and routes. These cost reduction efforts were often successful, as Delta reduced costs by U.S. $1.1 billion, and United reduced costs by U.S. $1.2 billion