Case Study Delta Airlines

Essay by kosborn2University, Master'sA+, March 2004

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Pg. 1 Many of the world's major airlines are growing and Delta Air Lines continues to grow with them. Delta is a full-service carrier that flies passengers and cargo, and is ranked third behind United Air Lines and American Air Lines. Delta's Headquarters is located at : Hartsfield Atlanta International Airport 1030 Delta Blvd., P.O Box 20706 Atlanta, Georgia 30320 The company was not always located in Atlanta, it was founded in Macon, Georgia in 1924 as the world's first crop-dusting service, as Huff-Daland Dusters, to combat boll weevil infestation of cotton fields. Not too long after the company was founded it moved to Louisiana, in 1925. Three years later in 1928, C.E. Woolman and two other partners bought the service and renamed it Delta Air Service. In 1929 Delta transferred mail without a government subsidy. Delta finally got a US postal Service contract in 1934 to fly.

Succeeding at that, the air service relocated to Atlanta in1941, becoming an official passenger carrier; Woolman became President, managing the airline until he died in 1966. In 1952 Delta purchased Chicago and Southern Airlines. The company offered its very first transcontinental flight in 1961. In 1972 the airline bought Northeast Airlines, expanding service to New England and Canada. Then in 1987 longtime employee Ronald Allen became CEO. In 1994 Allen began a cost-reduction plan that cut over 15,000 jobs and many routes. It drove down employee spirit and Delta's customer service reputation. Allen was let go in 1997 and replaced by Leo Mullin, a former electric utility chief. The next year Delta signed a marketing accord with United under which the carriers joined their frequent-flier programs. Then in 1999 Delta announce it would create a competing alliance with Air France and Aero Mexico. Pg. 2 Over the years Delta Air...