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Delta Airline strives to provide service that is fast and without frills. To gain a cost-benefit, the carrier has implemented many cost-cutting measures. Southwest has never served meals to passengers, thus avoiding needless requests during the journey. To cut airport prices, the carrier employs a point-to-point approach rather than a hub-and-spoke model. This is advantageous to the organization because it allows for additional flights on its routes due to the shortened mean flight time. Because of its shorter routes, the airline has been able to increase the number of seats within an aircraft at the same time having low number of galleries and toilets (McGraw, 2010)
In order to cut its operational costs in terms of maintenance, Delta Airline has tried to keep modern fleets by using newer and more fuel efficient aircrafts. This has helped to have fuel savings. This is very important strategy because fuel costs in airlines are among the key factors that influence the costs. Fluctuations in costs of fuels tend to affect the earnings of Delta Airline while revenues remain the same (Blocher, 2012). Fuel costs is a key factor because, the primary objective of the firm is to keep their fares low, add flights and to grow Delta Airline. However, to a large extent, attaining this goal largely depends on energy prices. Oil prices also affect the image of the firm as a fun, low-cost alternative (Halbmeijer, 2011).
Besides the decision of the company to use one type of plane, Boeing 737 allowed the mechanics and pilots to know how to maintain and fly only one type of aircraft. All these factors allowed Delta Airline to cut operational costs, and provide the most affordable ticket prices in the United States.
Blocher, Edward., & Stout, Daniel. Cost management: A strategic emphasis. New York: McGraw-Hill Higher Education. 2012.
Halbmeijer, Martn., Marketing strategies for project developers during area development competitions and recommendations for initiating future competitions (Doctoral dissertation, TU Delft, Delft University of Technology). 2011.
McGraw, High. Business ethics and social responsibility. 2010. Web from http://highered.mcgraw-hill.com/sites/dl/free/0070921989/226745/ferrell_sampleCH02.pdf
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