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Example research essay topic: Delta Airlines Market Share - 1,396 words

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The airline industry has grown at an incredible rate in the past, and is expected to increase at an even faster rate in the next twenty years. Delta Airlines has capitalized on this by being one of the leaders in air transportation, transporting more passengers worldwide than any other airline. In 1997, Delta became the first airline to carry 103 million passengers in one year. Delta has its headquarters located in Atlanta, Georgia where it can maintain control over all of its major hubs, which include Atlanta, Salt Lake City, Cincinnati, and Dallas/Ft. Worth. The company employs over 74, 000 employees throughout its network, who have the challenge of getting 2, 687 flights completed daily.

These flights are completed with the help of Deltas aircraft fleet of 584 aircraft, consisting mostly of Boeing produced aircraft. Deltas vision is to build on its traditions and become the best airline in the industry. It is focused on providing excellent customer service and reliability to its customers while always looking at ways to improve. (web) Throughout the rest of this report, ten of Delta Airlines routes will be analyzed based on the following areas: Market Rank, Competition, Non-Stop Mileage, Type Of Aircraft, Number of Passengers, Total Revenue, % Of Market Share, Average Yield, And Average Haul. Each route will help show how Delta has organized their flights compared to their major competition, and determine how it is doing over all. The ten routes that were selected for this report were chosen based on their rank, which was sorted according to Yield standing. Yield is defined as (total cents/ cost per mile), which gives the shorter routes an advantage due to the amount of time spent in the air.

The top five routes were used, followed by a random selection of five routes to cover both closely related routes and routes that may differ from the rest. All routes originate from Deltas major hub in Atlanta and are based on one-way travel. The routes according to their rank, are as followed: Rank Destination Mkt. Rank Yield Cents 1.

Birmingham, Al 2291 128. 91 2. Madison, Al 2246 127. 13 3. Greenville/Spt, SC 3229 105. 28 4. Columbia Met. , SC 1710 104. 46 5.

Nashville, TN 639 103. 51 16. Cincinnati, OH 530 55. 36 28. Daytona Beach, Fl 1709 33. 54 51. Fort Wayne Int. 2157 23. 66 70. Portland, ME. 1718 17. 50 76. Colorado Springs, CO 1244 16. 21 Birmingham is considered a short haul flight from Deltas Hub in Atlanta, with a non-stop mileage of 134.

The average time in travel usually averages around 52 minutes, with no enroute stops. At this times Delta airlines has only one competitor flying the route from Atlanta to Birmingham, which is a small commuter airline. This competitor only holds. 302 % of the market share, while Delta holds 99. 698 % of the market share. With this in mind Delta should still be cautious of new competition that might try this market out, because Birmingham is an expanding city. Delta Airlines flies an average of nine flights a day to Birmingham, starting around 0800 and ending around 2330 that evening. (web) The most popular aircraft that is used on the Birmingham route is the Boeing 757, which is configured to hold an average of 182 passengers.

It might seem unusual to have such an aircraft on a short haul route, but Delta Airlines is able to transport about 33, 000 passengers every quarter, with the 757. Delta charges an average fare of 172. 39 dollars on the route, which brings in 5, 395, 500 dollars of revenue very quarter. Birmingham is considered a City of the Deep South, which is still high on Southern traditions. Birmingham is a relatively young city, which was founded in 1871 and has grown ever since. New major attractions, including a full-blown theme park and one of the countrys best science museums, have opened recently.

Birmingham is also well known is the medical community, with its worldwide contributions to health care and healing. (web) Delta Airlines route from Atlanta, GA to Madison County, AL is another short haul flight with a non-stop mileage of 151. The average flight usually runs around 55 minutes, which is why it is a non-stop flight. Delta utilizes the Boeing 737 - 347 on this route with an average of about 128 seats available for each flight. The 737 is a two engine aircraft with an average fleet age of 13. 6 years, which makes it a good choice for this route due to the average haul being only 151.

Delta flies an average of 9 flights per a day to Madison County; with frequency throughout the day. (web) An average of 32, 300 passengers fly on this route each quarter, producing $ 6, 182, 200 in revenues. Delta charges an average fare of 191 dollars, which is slightly higher than the Birmingham route. This Higher fare might be due to Delta Airlines owning 100 % of the market share on this route. Without competition Delta is able to charge a slightly higher rate, and passengers will still flies due to the convenience. As with the first two routes, Delta Airlines third route is also a short haul route. The Atlanta, GA to Greenville/Sptbrg.

SC route has an average haul of 214 miles, with an average flight time around 58 minutes. This is a non-stop flight, on which Delta Airlines takes advantage of a few different aircraft to fulfill their customer needs. These aircraft include the Boeing 737, McDonnell Douglas MD- 88, and the ATR- 72. The Boeing 737 and MD- 88 both fly the same amount of flights to Greenville each day. They are both two-engine aircraft, with an average seating load from 128 to 142 passengers.

Deltas average fleet life on the MD- 88 is slightly lower than the 737 s, which make them a more logical choice when the passenger load is higher. (web) Delta Airlines flies around nine flights a day into Greenville, starting at 0600 and ending around 2230. Delta owns 94. 565 % of the market share on this route, with the rest going to Atlantic Southeast Airlines. Because ASA is a Delta Connection carrier, one carrier dominates the Greenville route. Delta flies approximately 17, 400 passengers on this route each quarter, bringing in $ 2, 775, 300 in revenues. The Greenville area has a medium sized population that supports cooperate and small privately owned businesses.

The Columbia Metro route from Atlanta, GA operates a lot like the previous routes, with the idea that it is a short haul route. The Average Haul of this route is 191 miles, with an average time spent in the air of one hour. Columbia, SC has a diverse and stable economy, which is healthy for an airline. It is the site of the Fort Jackson military base, and a central manufacturing and distribution center. Money magazine listed Columbia as the eighth-largest U. S.

community as far as economic growth during the 1980 s. (Cities of the United States, 383) Delta Airlines understands the potential for this city and flies a total of eight flights to Columbia Metro everyday. On these routes it predominately utilizes the MD- 88 as the aircraft of choice. As mentioned before this aircraft is a good choice for this type on route because of its configuration and fleet age. Delta Airlines owns 98. 978 % of the market share for this route, with US Airways picking up the rest. Because of the potential of this route Delta must maintain an understanding that new competition could decide to open routes to this city. Delta Airlines carries 48, 400 passengers on this route each quarter, with revenue earnings of $ 9, 273, 400.

The average fare for this route is 192 for Delta and 124 for US Airways. With this it can be seen that there is potential for a new carrier to come in at a lower price. Route # 5 from Atlanta, GA to Nashville, TN is the busiest of all the previous short haul routes already mentioned. The non-stop mileage is 213, with an average flight time around 59 minutes. Because Nashville, TN is both a cooperate and a tourist area, the potential for air travel into the area is great.

Delta owns 85. 210 % percent of the market share...


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