Overview Of The Airline Industry

Embracing new technology was a crucial strategy by every airline industry in America. Digital operation helps companies to decentralize its services and also reduce the cost of labor. By 2004, almost all airline industries had advanced in to a digital company. Despite Southwest’s development of a ticketless travel personal computer reservation, Delta changed the internal and external environment with a significant commitment and investment in technology and innovation to enhance customer satisfaction. Delta management team focused on technological innovation and creativity to ensure quality service provision. Economists argue that large amount of online and media advertising has increased competition among the airline companies. This has enabled companies to persuade its customers hence expanding its markets. Despite this, the practice of online management by Delta always reflects the culture of a society. Where technology is likely to lead to increased performance and motivation, then management of Delta encouraged culture through competition, through contests or by publicizing results and performance.

Over the past decade, American airline industry has faced significant transitions in environment of operation, including economic recession, technological changes and high volatile fuel prices. As a result of such changes, the companies are facing a considerable financial challenge that has resulted to bankruptcy. Airline have responded to these challenges by introduction of online transaction with customers hence introducing new affordable passengers and reduced number of schedules. Although the operation costs were significantly increasing, airline companies developed financial strategies aimed at stabilizing inflation status in the industry. The emergence of harsh economic recession has reduced the capacity of passengers using the industry. The demand of air travel has been regularly decreasing as consumers are overcome by the expensive travelling cost.

From 2002, America’s airline industry started experiencing over-capacity in passenger and cargo. This resulted to expansion of e-business and purchase of technologically updated aircrafts. Delta advanced in to a digital a company in 2000 and also purchased 500 seat Boeing 787. This revolutions transformed the industry in to a competitive environment with the aim of satisfying the growing capacity. Airlines developed building blocks of high performance by focusing on market strategies, distinctive capabilities and performance autonomy. Strengthening market share was another ambition for companies to penetrate the superior markets. Delta strive to achieve a dominant domestic market position and establishment of a strong local operational presence. Despite the growing financial strains in the industry, the companies are maximizing the available resources to expand in to new markets. This will also transform the companies hence adopting to restore profitability.

The airline industry is also the advanced technology to develop organizational capacity. Attaining strong and reliable organizational capacity is another organizational goal that Delta airlines focused on. The organization structure was strategized to ensure provision of the highest quality travelling services to customers. Most airline industries developed quality management techniques to ensure that each secured customers at their capacities. To achieve this, companies created friendly environment for the employers through increase in basic pays and putting them in to reward programs. Straszheim, M. R. (1969) argues that organizational capacity can result to development of a clearly defined strategy gives strategic intent and drive to an organization. After companies advanced technologically, airline industry was characterized by strategies which are equally important to the business as well as the community in which the industrial operation consequently affects. This helped companies in identification of the company’s long-term goals, implementation of specific course of action and using available, necessary resources to realize the goals.
(Straszheim, M. R. (1969). The international airline industry. Washington)