Delta Song Case
U.S. Airlines face many issues today that ultimately will lower profits. Heightened Security in airports, less people willing to fly and a slumping economy have put the airline industry at a disadvantage.
Delta Airlines has reported recently a $2 billon dollar second quarter loss. Delta has been losing ground to smaller airlines that fly the same routes that supply Delta with approximately 70% of its revenue.
Delta Airlines will attempt to become the first major carrier to successfully launch a long term, low cost competitor. In the past year alone, low-cost carriers such as Jet Blue have claimed over 80% of the market share in New York to ...view middle of the document...
The nervous system already gives Delta a competitive advantage, but it might also be able to assist online operations that would allow Delta to create a simple online interface to allow users to purchase tickets with ease. This system would allow Delta to cut back on labor expenses that occur from excess calls to customer service and company representatives.
As Delta plans to move away from the Apollo reservation system, it will be able to cut cost that would provide travel agents with their commissions from flight ticket sales. This could be negative as travel agents are upset could promote other airlines instead. Delta needs to come up with a solution that would satisfy using their own reservation system but allowing travel agents to book flights with minimal commissions.
Mishandled baggage can cost approximately $150 for Delta to track down and return to its owner. The nervous system allows for all bags to be scanned with a barcode reader, it may be configured to track missing bags as they possibly can be scanned for a second time. Research in this area may lead to consistencies among frequent reasons for mishandled baggage. Improvement in this area will not only reduce cost, but can improve customer satisfaction ratings.
As technology improves, Delta should use its nervous system to stay ahead of the curve. Check-in procedures at airport terminals can be long and sometimes frustrating. Delta can use this system for consumers to pre-print online boarding passes, or make it mandatory due to the fact that the majority of consumers have access to internet and printing capabilities. Finger print and drivers license scanners can be used as a quick form of check-in. The combination of these ideas would allow Delta to cut check-in staff.
Approximately 25% of an airlines cost is for aircraft maintenance, although Delta has cut expenses 11% there is still room for improvement. As Delta determines its flight schedule months in advance, it can use this information to determine how many miles will be put on each aircraft. This would allow Delta to create a Just-in-time inventory system for...