Delta Airlines is headquartered in the United States. The airline industry is heavily-regulated, in particular where public safety is concerned. The airline industry was also transformed in the late 1970s by deregulation, a process which has opened up competition and created the conditions for the industry consolidation that is still ongoing today (The Economist, 2013). Most of the legal/political environment for Delta is the FAA, or Federal Aviation Administration. This is the body that governs the airline industry, and sets the standards by which airlines must operate. There is no discrimination between airlines by the FDA. The Department of Justice is also a factor, because that department governs the mergers between airlines in order to ensure a competitive market. Thus far, airline mergers have been permitted, and there are still protections from the FAA with respect to foreign carriers and their ability (or lack thereof) to operate on domestic U.S. routes. Thus, in general, the political environment is neutral. The restrictions placed on the industry increase costs -- and safety -- and airlines have been able to merge, but competition in the industry has made it difficult for many airlines to operate profitably with any sort of consistency. There are just enough regulations to keep industry costs high -- though arguably this offsets potential lawsuits that would surely occur if there was cost-cutting by a company like Delta. Non-aviation operations are much less stringently-regulated than the aviation regulations, so in that sense Delta does have some flexibility with respect...
The company was able to declare bankruptcy in order to restructure its pension obligations, something that has helped the company to remain in business this long (Foust, 2009). Its merger with Northwest was also critical, and this was allowed, so the strongish Delta today exists because of a favorable political environment ten years ago. The legal environment also governs such issues as labor laws -- rules regarding hiring, firing, unions and other variables. Taxation policy affects airlines, in particular how they structure their asset bases. Further, the legal environment is important where things like communications are concerned as well -- fortunately for major airlines they are allowed to offer things like Wifi on their flights. Government is heavily involved in health and safety, through OSHA, something that is quite important to airlines in particular, as a heavy machinery industry.
Delta Airlines Domestic and Global Environments Delta operates in the airline industry and competes with other leaders in the industry including brands such as Frontier Airlines, United Airlines, American Airlines and Southwest Airlines. These are the dominant firms in the industry and Delta rates second highest in terms of volume. Delta's overall performance has improved recently compared to previous performances. Yet, there is one customer service issue that has gained publicity which
Innovation is our signature. We foster creativity and vision to provide solutions beyond today's boundaries ("FAA Mission)." JAA The Joint Aviation Authorities (JAA) was developed in the 1970s by a handful of major European National Aviation Authorities when they began to join activities. The JAA was established for the purposes of developing a platform for a cooperative safety regulatory system because they desired to have a uniform high standard of aviation
Economists can demonstrate how, in the aggregate, consumers and industry benefit from free trade. In the process of creative destruction, however, some industries and workers are displaced by the changes wrought by free trade. The measurement of benefit in the case of Volkswagen continues to reverberate today, after over 25 years. When VW entered the Chinese market, it did so over the objections of its local labour unions and politicians.
And many have got successful too in earning the market share. The emerging competition by new companies is a growing threat for the company and it should be tackled properly to avoid any future disturbances. In order to further describe the competition Southwest Airlines is facing a Competitive Profile Matrix is designed. The following Competitive Profile Matrix tells about the tough competitors which are in a good position to have
External Analysis of Southwest Airlines External Analysis Southwest Airlines Will Southwest Airline's strategic plan continue to bring success in the new airline industry landscape? This paper sought to answer this question by examining the external increasingly consolidated environment in which Southwest competes. The review was conducted through application of Porter's Five Forces, a PEAT analysis, and a SWOT analysis. The report concludes that Southwest has gained ground and maintained stability, changing only as
" (Knorr and Eisenkopf, 2004) the fifth and final strength identified for Emirates Airline in the work of Knorr and Eisenkopf (2004) is stated to be the Emirates "...award-winning service in all classes, which is matched or exceeded only by very few other carriers such as Singapore Airlines. Sixth, clever marketing - for example, Emirates, not Lufthansa - was named official carrier of the 2006 FIFA World Cup hosted by
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