A combination of economic recession and the attacks of September 11, 2001 have caused substantial problems for the aviation industry resulting in an industry decline over the past six years. All but one of the US major carriers were forced to resort to Chapter 11 Bankruptcy (Pulling). Delta Airlines has been involved in Chapter 11 proceedings for more than a year now and the end appears to be in the imminent future. A critical stage of the restructuring process is rapidly approaching, which will require impeccable planning, goal-orientation, projection, presentation and execution. To date, Delta’s fight out of Chapter 11 has been marked by ambitious international travel expansion, a goal that is achievable given the right plan of attack (Pulling).
Southwest Airlines has managed to remain profitable throughout the industry recession. They have seen 27 straight years of profitability and an average annual return on stock of 17.5% (McCaffery). Their success is evidence of the fact that there is a great deal to be learned from their business operations. Although Southwest and Delta differ greatly (i.e. Southwest is a low fare airline that focuses on domestic travel while Delta is a major carrier focused on international travel), a number of profound principles that guide their airline are applicable to the Delta model. It would be considerably beneficial for Delta to re-examine their marketing, expansion, and employee/customer relations’ policies while using the Southwest model as a supplement. The fact that Delta finds itself in a state of restructuring inherently implies that change is necessary for future success. The effectiveness of new strategies is contingent upon the fact that they are the correct strategies and So ...