Surname 1Name:Tutor:Course:Date:MEMORANDUMTO: Chairman, Deltas Board of DirectorsFROM :< Student name>, consultantDATE: 9/27/2018SUBJECT: New low-cost carrierBackgroundFollowing the failure of Delta Express as a low-cost strategy for the organization, DeltaAirlines decided to try out another low-cost version that will minimize the sitting duration andmore flying b increasing the number of experienced flight attendants and pilots termed as"Delta's Songs." Delta Express low-cost model was unsuccessful due to unavailability of aunified and robust management team to combat with brand issues, budget and cost creep. Theprimary objective and goal of Delta airlines with DELTA'S SONG project is to keep up with theindustries low-fare division. The main competitors of Delta Airlines are Southwest and JetBlueairlines who have triumphantly adapted the low-cost strategy. Delta Song project is aiming tocompete with the JetBlue Airlines who are the successful beginners b basing their operations onthe Southwest Airlines model of low-cost (low frills, quick turnarounds, and low fares)(Dikolli,345)IntroductionAs clearly seen, airlines works within a high-fixed-cost and a low margin environmentsometimes making the surplus intended more sensitive in its minimized ratio because ofcompetition and environmental factors like the 9/11/2001 attack. Airlines that are big such as theAmerican and the united airlines carries enormous labor costs weights compared to the small ...
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