Wi-Fi in the sky !!!!!!!!!!!!
The airlines try to find new way to generate revenue -- charging between $9.95 and $12.95 per person.
Some people think that Wi-Fi on the airplane is the great idea!!! On the other hand, someone think that it is like the snake on the airplane!!!
Here is the link for video of some opinions about Wi-Fi in the sky.
http://video.forbes.com/fvn/tech/airplane-wi-fi?partner=yahootix
How about you? How do you think about Wi-Fi in the sky? Use it or lose it?
Saturday, June 13, 2009
SWOT Analysis
Delta Airline is one of the largest domestic airlines in the United State. Delta provides scheduled air transportation for passengers and cargo throughout the US and around the world. The company strong network infrastructure enables it to gain access to key market as well as enhance the quality of its delivery services. However, the rising fuel prices could have a direct impact on the company's margins.
Here is the SWOT of Delta:
Strengths
Strong operational network
Consistent top line growth
International alliances
Weaknesses
Weak performance of cargo division
Heavy dependence on passenger revenues
Opportunities
Passenger traffic in Asia Pacific
Growing global air freight and logistics
Growth in US airline industry
Threats
Rising aviation fuel prices
Intense competition
Regulatory conditions
Here is the SWOT of Delta:
Strengths
Strong operational network
Consistent top line growth
International alliances
Weaknesses
Weak performance of cargo division
Heavy dependence on passenger revenues
Opportunities
Passenger traffic in Asia Pacific
Growing global air freight and logistics
Growth in US airline industry
Threats
Rising aviation fuel prices
Intense competition
Regulatory conditions
Will airlines go bankrupt?
Will airlines follow US automakers into bankruptcy protection?
Auto companies and airlines are both getting hammered by the recession, but while two of the nation's major carmakers went into bankruptcy court protection, the leading U.S. carriers are flying above the carnage -- for now.
Make no mistake, the airlines are in big trouble, with air traffic in a free fall this year. Many business travelers -- the most profitable customers for an airline -- have been grounded. Others have moved from the first-class cabin back to coach.
Leisure travelers have been worried about losing their jobs. To lure nervous vacationers, carriers have slashed summer fares, and experts report some of the cheapest travel prices in years.
All the major U.S. carriers except Southwest lost money last year. The leader of an international airline trade group said last week that worldwide the industry will lose $9 billion this year -- nearly double the loss the organization predicted in March.
Still, no major U.S. airline is in bankruptcy court protection. Compare that with the auto industry, where General Motors Corp. filed for Chapter 11 protection last month, following in the tire tracks of Chrysler, which sought court protection from creditors in April and was taken over by Italy's Fiat Group SpA.
So.. here is the answer why aren't airlines in bankruptcy court protection?
--> because they went through bankruptcy in the last downturn, and they're still benefiting from that.
Delta Air Lines Inc., United parent UAL Corp. and US Airways Group Inc. used the bankruptcy-court process to reduce debt and cut labor costs earlier in this decade. They emerged leaner, with fewer liabilities -- some dumped pension obligations on the federal government -- and with less debt.
Auto companies and airlines are both getting hammered by the recession, but while two of the nation's major carmakers went into bankruptcy court protection, the leading U.S. carriers are flying above the carnage -- for now.
Make no mistake, the airlines are in big trouble, with air traffic in a free fall this year. Many business travelers -- the most profitable customers for an airline -- have been grounded. Others have moved from the first-class cabin back to coach.
Leisure travelers have been worried about losing their jobs. To lure nervous vacationers, carriers have slashed summer fares, and experts report some of the cheapest travel prices in years.
All the major U.S. carriers except Southwest lost money last year. The leader of an international airline trade group said last week that worldwide the industry will lose $9 billion this year -- nearly double the loss the organization predicted in March.
Still, no major U.S. airline is in bankruptcy court protection. Compare that with the auto industry, where General Motors Corp. filed for Chapter 11 protection last month, following in the tire tracks of Chrysler, which sought court protection from creditors in April and was taken over by Italy's Fiat Group SpA.
So.. here is the answer why aren't airlines in bankruptcy court protection?
--> because they went through bankruptcy in the last downturn, and they're still benefiting from that.
Delta Air Lines Inc., United parent UAL Corp. and US Airways Group Inc. used the bankruptcy-court process to reduce debt and cut labor costs earlier in this decade. They emerged leaner, with fewer liabilities -- some dumped pension obligations on the federal government -- and with less debt.
Friday, June 12, 2009
Airline passengers could get a 1-2-3 punch
Low ticket prices could be short-lived if fuel prices continue to rise this fall !!!!!!!!!!!!!
Corporate travel and ticket sales of premium seats are down. Overall demand is weak. And fuel prices are rising -- again. The one-two-three punch could be bad news for consumers this fall, as U.S. airlines face pressure to raise fares or cut more capacity to cover their costs.
Executives at several airlines, including Delta, Southwest, US Airways, Continental and American, gave bleak outlooks Thursday during an investor conference in New York, and there was little talk from anyone of a near-term rebound. AirTran offered a bright spot amid the industry woes, as its chief financial officer said the discount carrier expects to have "one of the best years in the company's history."
The rise in unemployment and hits Americans have taken to the value of their homes, coupled with the meltdown in the financial markets, has caused a significant slowdown in air travel. Airlines also have lost business from the swine flu, which has caused some people to cancel travel plans to Mexico.
Atlanta-based Delta Air Lines Inc. projects it will take a $125 million to $150 million revenue hit in the second quarter because of the impact on air travel from the swine flu virus. The quarter ends June 30. The swine flu scare also has hurt Delta sales to customers in Asia, who may be worried about travel because of the SARS outbreak in 2003.
The overall drop in demand has coincided with a recent increase in fuel prices, which means lower sales, one executive said industry passenger revenues have declined nearly 20 percent in the first four months of the year, are meeting higher costs.
Delta President Ed Bastian said that if fuel prices continue to climb into the fall, airlines will be under pressure to raise prices or cut more capacity to cover their costs. Delta has made a decision not to put seats out into the marketplace if we can't recover the cost of that seat.
Corporate travel and ticket sales of premium seats are down. Overall demand is weak. And fuel prices are rising -- again. The one-two-three punch could be bad news for consumers this fall, as U.S. airlines face pressure to raise fares or cut more capacity to cover their costs.
Executives at several airlines, including Delta, Southwest, US Airways, Continental and American, gave bleak outlooks Thursday during an investor conference in New York, and there was little talk from anyone of a near-term rebound. AirTran offered a bright spot amid the industry woes, as its chief financial officer said the discount carrier expects to have "one of the best years in the company's history."
The rise in unemployment and hits Americans have taken to the value of their homes, coupled with the meltdown in the financial markets, has caused a significant slowdown in air travel. Airlines also have lost business from the swine flu, which has caused some people to cancel travel plans to Mexico.
Atlanta-based Delta Air Lines Inc. projects it will take a $125 million to $150 million revenue hit in the second quarter because of the impact on air travel from the swine flu virus. The quarter ends June 30. The swine flu scare also has hurt Delta sales to customers in Asia, who may be worried about travel because of the SARS outbreak in 2003.
The overall drop in demand has coincided with a recent increase in fuel prices, which means lower sales, one executive said industry passenger revenues have declined nearly 20 percent in the first four months of the year, are meeting higher costs.
Delta President Ed Bastian said that if fuel prices continue to climb into the fall, airlines will be under pressure to raise prices or cut more capacity to cover their costs. Delta has made a decision not to put seats out into the marketplace if we can't recover the cost of that seat.
Delta cutting more capacity
Delta to cut capacity more than expected as declining revenue overtakes merger benefits.
Delta Air Lines Inc. will shave additional capacity later this year as it warns that more than $6 billion in benefits it expected from lower fuel prices, its merger with Northwest Airlines and previous capacity reductions will be overtaken by declining revenues. The reduction in available seats could mean further job cuts at the world's largest airline operator. Delta also said it projects it will take a $125 million to $150 million revenue hit in the second quarter because of the impact on air travel from the swine flu virus. The quarter ends June 30.
Delta executives told employees in a memo Thursday ahead of a presentation at an investor conference in New York that Delta will reduce system capacity by 10 percent this year compared to 2008. That is up from Delta's previous plan to cut system capacity by 6 percent to 8 percent. Delta also will reduce international capacity 15 percent, up from a previous plan to cut it by 10 percent. Delta said capacity reductions will begin in September. Some routes will be suspended, while the number of weekly flights to other destinations will be reduced.
"The additional capacity reductions mean we again must reassess staffing needs," Chief Executive Richard Anderson and President Ed Bastian said in the memo. "While the challenges of the current environment preclude us from making guarantees, our goal remains to avoid any involuntary furloughs of frontline employees."
Delta Airlines stock closed at 6.40 on 6/12/09
Delta Air Lines Inc. will shave additional capacity later this year as it warns that more than $6 billion in benefits it expected from lower fuel prices, its merger with Northwest Airlines and previous capacity reductions will be overtaken by declining revenues. The reduction in available seats could mean further job cuts at the world's largest airline operator. Delta also said it projects it will take a $125 million to $150 million revenue hit in the second quarter because of the impact on air travel from the swine flu virus. The quarter ends June 30.
Delta executives told employees in a memo Thursday ahead of a presentation at an investor conference in New York that Delta will reduce system capacity by 10 percent this year compared to 2008. That is up from Delta's previous plan to cut system capacity by 6 percent to 8 percent. Delta also will reduce international capacity 15 percent, up from a previous plan to cut it by 10 percent. Delta said capacity reductions will begin in September. Some routes will be suspended, while the number of weekly flights to other destinations will be reduced.
"The additional capacity reductions mean we again must reassess staffing needs," Chief Executive Richard Anderson and President Ed Bastian said in the memo. "While the challenges of the current environment preclude us from making guarantees, our goal remains to avoid any involuntary furloughs of frontline employees."
Delta Airlines stock closed at 6.40 on 6/12/09
Board of Directors
Here is some information about Board of Directors of Delta
Pursuant to the Bylaws adopted effective as of April 30, 2007, Delta's Board of Directors will be elected annually. It is currently comprised of Delta's non-executive chairman, Daniel A. Carp, Delta's CEO, Richard Anderson, and eleven outside directors.
Daniel A. Carp has served as non-executive Chairman of Delta’s Board of Directors since April 30, 2007. He was Chief Executive Officer and Chairman of the Board of Eastman Kodak Company from 2000 to June 2005, and continued to serve as Chairman of the Board until his retirement from the company in December 2005. Mr. Carp was President of Eastman Kodak Company from 1997 to 2003. He is a director of Liz Claiborne, Inc., Norfolk Southern Corporation and Texas Instruments Inc.
Richard H. Anderson has been Chief Executive Officer of Delta since September 1, 2007. He was Executive Vice President of UnitedHealth Group from November 2004 to August 2007. Mr. Anderson was Chief Executive Officer of Northwest Airlines from February 2001 to November 2004. He is a director of Cargill, Inc. and Medtronic, Inc.
The Board of Directors holds regular meetings four times a year, schedules special meetings when required, and regularly meets in executive session without management. The Board and its committees also meet informally from time to time. The Board met 18 times in 2008.
We learned in class from Dr.Busija that the responsibilities of the board of directors are establish and update mission, elect the top management team, establish top management compensation, determine amount and timing of dividends, set broad company policy, and mandate legal and ethical compliance.
Pursuant to the Bylaws adopted effective as of April 30, 2007, Delta's Board of Directors will be elected annually. It is currently comprised of Delta's non-executive chairman, Daniel A. Carp, Delta's CEO, Richard Anderson, and eleven outside directors.
Daniel A. Carp has served as non-executive Chairman of Delta’s Board of Directors since April 30, 2007. He was Chief Executive Officer and Chairman of the Board of Eastman Kodak Company from 2000 to June 2005, and continued to serve as Chairman of the Board until his retirement from the company in December 2005. Mr. Carp was President of Eastman Kodak Company from 1997 to 2003. He is a director of Liz Claiborne, Inc., Norfolk Southern Corporation and Texas Instruments Inc.
Richard H. Anderson has been Chief Executive Officer of Delta since September 1, 2007. He was Executive Vice President of UnitedHealth Group from November 2004 to August 2007. Mr. Anderson was Chief Executive Officer of Northwest Airlines from February 2001 to November 2004. He is a director of Cargill, Inc. and Medtronic, Inc.
The Board of Directors holds regular meetings four times a year, schedules special meetings when required, and regularly meets in executive session without management. The Board and its committees also meet informally from time to time. The Board met 18 times in 2008.
We learned in class from Dr.Busija that the responsibilities of the board of directors are establish and update mission, elect the top management team, establish top management compensation, determine amount and timing of dividends, set broad company policy, and mandate legal and ethical compliance.
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