Delta Airlines
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downfall of delta airlines & how they come up with restructuring plan

downfall of delta airlines & how they come up with restructuring plan

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  • 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

Delta Airlines Delta Airlines Presentation Transcript

  • D E L T A AIRLINES
    PRESENTED BY
    ASHISH (42)
    AKASH (14)
    SUDHA (50)
    ANUJA (25)
  • FINANCIAL CRISES
    • DECLINE OF AIRLINES INDUSTRY
    • DOWNWARD TREND OF THE BUSINESS
  • DIFFICULTIES OF DELTA
  • GRINSTEIN CHALKED
    • BIGGEST LOSS OF DELTA AIRLINES US $ 2 BILLION
    • CEO DECIDESTO RESTRUCTURING THE DELTA AIRLINES
  • M A J O R P R O B L E M S
    HIGH LABOUR COST
    HIGH PERKS & PENSION
  • M A J O R P R O B L E M S
    HIGH LEGACY COST
    HIGH FUEL COST
  • M A J O R P R O B L E M S
    THREAT OF COMPETITION
    WEAK RELATIONSHIP WITH THE TRAVEL AGENCY
  • MAJOR PROBLEMS
    THREAT OF COMPETION
  • RESTRUCTURING PLAN
    CUSTOMER PRODUCTS &
    SERVICES
    ADDING MORE FLIGHTS
  • RESTRUCTURING PLAN
    ELIMINATION OF 6000 TO 7000 WORKERS
    EMPLOYEE REWARD PROGRAMME
  • FLEET
  • SONG CULTURE
  • RECOMMENDATION
    • ADVERTISEMENT
    • LOW COST AIRLINES
  • CONCLUSION
    EVERY MANAGEMENT MUST BE READY TO FACE RECESSION