How did Delta Airlines get so big?

Delta Airlines is one of the largest global airlines, and this research paper seeks to answer the question of how the company grew to its present status.

Delta Airlines is one of the biggest international airline companies today, transporting more than two hundred million passengers per year and operating in more than three hundred different locations across fifty+ countries. However, Delta did not always experience mammoth growth; it has evolved gradually over the years through steady expansion, acquisitions, mergers, and wise decision-making that helped shape the company into one of the biggest airline brands in the world.

The Birth of Delta Delta’s origin can be traced back to 1924, when it was incorporated as Huff Daland Dusters, a crop dusting company based in Macon, Georgia. Delta was renamed Delta Air Service in 1928 when C. E. Woolman bought it out, which marked its beginning. During that time, Delta only had a couple of passenger and mail services within the region, and this was in the state of Georgia.

Woolman initially embarked on an effort to transform Delta Airlines into the largest regional air carrier in the Southeastern United States. He achieved this through the expansion of activities within Georgia and into Florida, Alabama, Mississippi, Louisiana, and the Carolinas. Thus, Delta had a sound beginning when the airline industry was picking up in the mid-20th century to expand its first region.

Beginning of Intensive Development In 1953, Delta joined with Chicago and Southern Air Lines, due to which they were able to serve a national market via route systems in the Midwest to Chicago and St. Louis. This led to the achievement of this merger as one of the leading airlines in the country.

In the next four decades, delta actively targeted and merged with the essential regional airlines from the South and East Coast to maintain their stronghold in that region. North-east, Western Airlines and Pan-Am acquisitions added vice domestic and international presence to Delta.

Privatization and the struggle for livelihood The change in the regulation of airlines in 1978 led to what is now referred to as the ‘industry disruption era’. When the large carriers started operating and vying for market share across different regions, most of the airlines simply could not cope and had to shut down or merge.

Delta also felt the pinch during this period, as it recorded losses that exceeded $1 billion from 1979 to 1983. They also had to dispose of assets, drastically reduce wages, dismiss workers, and cancel flights to avert going bust. They also refocused on their Customer care services, increasing traffic on their networks.

By the early 1990s, Delta had come back as one of the least-wounded legacy carriers to come out of the deregulation period. The hub and spoke network, which was designed to avoid the potential pitfalls of serving primary cities, was effective for business travelers. Eventually, Delta was able to use this success to expand further all over the world as well.

More expansion inside the domestic market as well as the international market It was in 1987 that Delta was finally able to spread to the west coast after Central and North-eastern states had been their area of specialization for some time. The other more recent European places were incorporated in the 1990s when rights to land and access to airports became available after the collapse of the Soviet Union. Delta and Air France merged in 2002 in a code-share agreement for cross-Atlantic cooperation, to cost-share and revenue-share but did not form the SkyTeam alliance, which Delta co-established in 2004.

The Pan-Am Acquisition Another significant event that propelled Delta to be among the four leading airline companies in the United States was the deal that saw Delta gain the European routes of Pan-Am in 1991. This $1. 4 billion deal provided Delta with a huge international platform with several more trans-Atlantic gateway cities and also bases in Asia that were previously served by Pan-Am. Within the space of a day, Delta had shifted from being a regional airline to an international contender.

The Northwest and Virgin Atlantic Mergers Delta did not slow down its aggression in the new millennium. Northwest Airlines was acquired by Delta in 2008, and that was when they got a full-fledged network across the Midwest and Northern states that used to be the forte of Northwest Airlines to counterbalance where Delta used to be strong back East and down South.

The strategic international alliance occurred in 2012 when Delta took a controlling investment of 49% in Virgin Atlantic. In an s wp that only provided them with the full ownership of Virgin Atlantic in 2013. In addition to these, the $360 million deal also provided more connecting routes between North America and Europe, thereby establishing Delta as one of the biggest trans-Atlantic airlines.

Cutting Costs During Recessions Another area where Delta has been successful in its management has been the management of costs, especially annually, quarterly, monthly even daily in the next 50 years, besides managing the volatility of oil prices. Delta’s plan for efficiency gains involved delaying aircraft orders, reducing its fleets and workforce earlier than competitors, and de novo removing whole aircraft from its fleet, as well as automating key front-end customer support operations, all of which were designed to strip out billions in costs each time that structural changes in the industry under the pressure of economic cycles occurred.

Staying Adaptable as Threats Arise Whether it was the fuel price hikes, economic downturns, business failures, or entrance of budget airlines and international state airlines, Delta has not only survived but thrived well in facing these external factors for years now.

As a result of taking action such as the reduction of fare structures, offering Basic Economy options, and establishing strategic airline partnerships, Delta has managed to allocate itself the flexibility needed to succeed as a result of economic adversity and behavioral change in competition internationally.

Today, Delta has transformed into a global giant, but this was accomplished through gradual network expansion over several decades and through strategic, daring mergers that translated into operational efficiencies, disciplined costs, and customer service. As for today, Delta is eager to continue its way to be a strong leader in the airline industry during the next thirty or even a hundred years.

Book your Delta Airlines ticket now! Call +1 833-902-2090