1.0 Delta Air Lines
1.1 Introduction
Delta Airlines is the second largest company worldwide that is entitled to offering aviation services that entail transportation of passengers, mail, and cargo across the globe. The company is headquartered in Atlanta, Georgia, and has depicted a drastic development rate since the launch of its operation. The company has been advancing its operations through amalgamation and mergers with other companies like Northwest, which was beneficial through technological integration and financial assistance in purchasing jet fuel (Hakim, 2023). With all the company’s projections and success, it is therefore worthwhile analyzing the company operations. This article entails an analysis of the company’s Pestle analysis tool. PESTLE is a strategic management tool that helps a company evaluate its external macro environment based on Political, Economic, Social, Technological, Legal, and Environmental factors.
2.0 PESTLE Analysis of the Delta Air Lines
2.1 Political
Delta Air Line faces various political influences in the path of its operations. For example, the regulatory environment, for instance, the Federal Aviation Authority responsible for directives in the aviation industry might provide restrictions based on standardization and security protocol. The political decision on airport slot allocation might also prevent the airport from monopolizing some markets, thus regulating the profit margin of the Delta Air Line. However, Delta might also be positively impacted if granted a prime operations slot. Additionally, the efforts of the government to develop infrastructure might also impact Delta AIR Line in Terms of accessibility of the airports via road (Chan et al., 2022). Lastly, the geopolitical aspect, such as the Middle East oil suppliers and the political instability in such regions, might result in price fluctuation of aviation fuel, thus impacting the operations of Delta Airlines. The operations of the Airline can also be impacted by aspects such as international relations, trade agreements, and sanctions, which might also impact the operation of Delta (Anton et al., 2021).
2.2 Economic
Delta experiences the economic impact of the market it is operating in, for example, the fluctuation in fuel cost. The economic factors, such as changes in the price of fuel, directly impact the operation of Delta Airlines; thus, the geopolitical impact and economic downturns influence the price of fuel, thus directly impacting Delta. The Airline has also formed a strategic alliance that provides a competitive advantage against other competitors in the market (Aghlmand et al., 2022). The alliance formed has revealed enjoyment of scale economy in areas such as fuel prices and aircraft acquisition through enhanced abilities of price negotiations. Additionally, the Airline is also impacted by the consumer spending and strategies impacts of external economic events, for instance, natural disasters and pandemics, such as COVID-19, which impacted the operations of Delta Airlines. Lastly, the Airline is also impacted by global economic conditions, which influence the demand for air travel, which impacts individual businesses, thus, in turn, impacting Delta directly.
2.3 Social
Regarding the social aspect, Delta is impacted in various aspects, including labor relations and unionization, which entails negotiation and compensation benefits. For instance, the labor union, notably the Air Line Pilot Association, plays a crucial role in times of bankruptcy. Corporate governance and social responsibility entail the company actively promoting diversification within and outside the organization. The Delta has partnered with organizations such as Red Cross, Habitat for Humanity, and UNICEF, which show the Delta’s interest in enhancing social responsibility. The company is also impacted by labor disruption and social Activism, which requires the company to navigate the social complexity required to navigate labor relations, especially during complex events such as the formation of a merger (Do et al., 2023). The involvement in labor unions provides a good picture of Delta addressing social responsibility to society, thus managing the impact of social responsibility in its operations
2.4 Technological
Various technological activities impact Delta Air Lines. For instance, the Airline has adopted online services and a reservation system that allows passengers to view, select, and book or change seats within the website, attracting more passengers to prefer Delta. Additionally, the Airline has also enhanced the use of technology through the development of self-service Kiosks and paperless mobile check-ins, which has streamlined the check-in process for the company by enhancing customers’ convenience (Sánchez, 2020). The Airline has also embraced entertainment and increased connectivity on the aircraft, thus enhancing consumer-centric operation and providing friendly services within the Airlines. The Airline has also enhanced security technology through collaboration with TSA, which depicts the broader aspect of the Industry embracing technology. Lastly, the Industry has also advanced technological advancement in the Aircraft investment, which ensures new technological modification for every new aircraft brought in the market.
2.5 Legal
This entails the Airline’s compliance with rules and regulations of the geographical location and its areas of operation. For example, based on regulatory compliance, the Airline must adhere to various aviation authorities such as Federal Aviation, for instance, the FAA of the United States. The Industry opts to adhere to all the standard regulations and operation procedures (Gareeb & Rwelamila, 2022). The Industry should also adhere to labor and employment regulations, which entrails working hours regulations, wages, and benefits to the airline staff. The Airline is also impacted by antitrust and Competition laws that ensure the company does not engage in unethical Competition or monopolize the market, preventing other airlines from operating. The Industry should implicate the issues of data protection and privacy issues by safeguarding customers’ and employees’ data from breach. This, therefore, makes the company design efficient privacy policies that govern data management within the airline premises.
2.6 Environmental
Delta’s involvement in environmental conservation and societal expectations has channeled the Airline to adopt more fuel-efficient and sustainable aviation, thus reducing emissions (Kunn et al., 2023). The company has enhanced and reduced noise pollution because most aircraft face restrictions due to noise pollution. With the reduced noise impact, the Airline enjoys operation with limited restrictions in every geographical market. Additionally, the Industry is also impacted by hurricanes and heat wave disruption, thus impacting flight schedules, often leading to flight cancellations.
Conclusion
In Conclusion, this article analyses the second largest Airline worldwide, Delta Airline, that offers aviation services. The analysis is based on PESTLE analysis, which entails discussing the Political, Economic, Social, Technological, Legal, and Environmental external impacts on the operation of the Delta airline. The article provides a critical analysis that provides insight into the company’s success based on the case study of Delta Airlines and additional external sources listed and cited.
References
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Hakim, R. (2023). United Express Strategic Audit. https://digitalcommons.unl.edu/honorstheses/598/
Künn, S., Palacios, J., & Pestel, N. (2023). Indoor air quality and strategic decision-making. Management Science. https://pubsonline.informs.org/doi/abs/10.1287/mnsc.2022.4643
Sánchez Fairweather, S. (2020). Analysis of a tourist destination. https://repositori.uji.es/xmlui/handle/10234/194561
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