Running Head Deanna Savage MGM 340 1301 Colorado Technical U

Running Headdeanna Savagemgm 340 1301 Acolorado Technical Universityin

DeAnna Savage MGM -A Colorado Technical University Individual Project 4 US Airline Industries The airline Industry is one of the most convenient means of travel and exporting. Two of the most prominent American airlines that have become innovative and exploring the depths of operations Management at its best are Delta and Southwest Airlines. Delta Airlines is one of the second largest airlines and has aimed to be the best since the beginning of its journey in the 1920s, teaming up to eliminate the infestation of boll weevil in agriculture; soon after Delta proceeded to become a parent company. Nearly 4 airlines (Chicago, Northeast, Western, and Southern airlines) merged with Delta from the early 1900s. Through the decades, they have cut costs and faced bankruptcy issues.

As of 2012, Delta made a profit over $321 billion at $1.61 a share. Similarly, Southwest Airlines, starting in Dallas, is known for having lower fares than other airline services. Southwest has faced economic challenges, such as rising fuel prices due to oil catastrophes. Incorporated in 1967, Southwest operates over 3,400 flights daily and remains profitable, being the largest operator of Boeing 737 aircraft.

Southwest has earned over $75 million with a share price of 9 cents and revenue of $1.9 billion. Both companies' mission statements reflect their core values and operational focus. Delta's mission is "To be the carrier of choice for customers through operational excellence, second mile service, and emotional connection, including support for the disability community," supplemented by their slogan, “Delta Airlines. We love to fly. And it shows.” Southwest emphasizes customer service with its mission: “Dedication to the highest quality of Customer Service delivered with warmth, friendliness, pride, and company spirit.”

Delta's revised objective emphasizes connecting with customers and providing exceptional service to disabled passengers. Southwest seeks to demonstrate empathy and integrity in all circumstances, aiming to outperform competitors through superior service and customer focus.

The airline industry faces several operational challenges. For Delta, these include overcoming escalating fuel costs, deregulation pressures, competition from low-cost carriers, and impacts from major events like the September 11 attacks. To address some challenges, Delta partnered with Accenture to outsource accounting and finance functions, aiming to improve service and reduce costs. Despite these efforts, issues such as baggage handling and operational disruptions persist.

Southwest faces economic downturns, heightened security protocols following terrorist threats, and fluctuating passenger demand. These issues led to long lines, a tarnished reputation, and reduced flights to certain destinations. In response, Southwest adjusted its flight routes, focusing on smaller airports and reducing flights to larger hubs to control fuel costs and maintain profitability.

Various industry metrics are used to evaluate performance. Delta tracks speed and availability through baggage handling and timely assistance; customer satisfaction levels; online sales efficiency; online check-in processes; and overall performance measurement. Southwest monitors on-time performance, market share compared to competitors, conflict resolution strategies, safety procedures, and customer satisfaction.

Both airlines have adopted practices to improve quality, reduce costs, and enhance customer experience. Delta has leveraged outsourcing and corporate social responsibility initiatives to manage complex operational challenges, incorporating technology to facilitate collaboration and supply chain responsiveness (Accenture, n.d.). Southwest has minimized routes, merged with other airlines, and implemented emergency protocols to ensure safety and maintain market share. Implementing lean manufacturing principles has proven effective, empowering employees to identify improvements, reduce cycle times, and eliminate waste, leading to increased efficiency and employee motivation (Stalk, 1988; USA Today, 2012).

In conclusion, while both Delta and Southwest face distinct operational challenges, Southwest’s focus on customer satisfaction, operational agility, and safety measures positions it as the more adaptable and resilient airline. Strategic goals, employee incentives, and technological integration are crucial for long-term success in the competitive airline industry. As travel patterns evolve with technological advancements in ICT, airlines that adapt quickly and prioritize customer-centric practices will maintain competitiveness and growth.

References

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• Accenture. (n.d.). Airline Industry Challenges and Solutions. Retrieved from https://www.accenture.com
• USA Today. (2012). Lean Manufacturing in the Airline Industry. Retrieved from https://www.usatoday.com
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