Competition
While Delta has embarked on a shift towards increased international routings, domestic airliners remain the most significant competition. The airline industry has become increasingly price motivated, which means that both legacy and discount airlines are competition for Delta.
Delta’s closest competitors include the following:
Delta vs. Competitors (2006)
| Company
| Revenue Passenger Miles (RPMs) (millions)
| Passenger Revenue per Available Seat Mile (RASM)
| Operating Cost per Available Seat Mile (CASM)
|
| Delta
| 116,133
| $0.1056
| $0.1156[2]
|
| AirTran Holdings
| 13,836
| $0.0956
| $0.0974[3]
|
| Alaska Air Group
| 20,513
| $0.1157
| $0.1198[4]
|
| American Airlines
| 139,454
| $0.1026
| $0.1090[5]
|
| Continental Airlines
| 79,192
| $0.0996
| $0.1056[6]
|
| Frontier Airlines Holdings
| 8,029
| $0.0898
| $0.0936[7]
|
| JetBlue Airways
| 23,320
| $0.0777
| $0.0782 [8]
|
| Northwest Airlines
| 78,044
| $0.1078
| $0.1095[9]
|
| Southwest Airlines Company
| 67,691
| $0.1293
| $0.0880 [10]
|
| United
| 117,470
| $0.1004
| $0.1123 [11]
|
| US Airways Group
| 37,130
| $0.1097
| $0.1139 [12]
|
RASM and CASM respectively allow for comparisons across airlines for unit revenue and unit costs. In the battle between low fare carriers and legacy airlines, companies like Southwest and Jetblue have found ways to reduce CASM (through lower maintenance costs from a more uniform aircraft fleet type and a “no frills” customer experience) while legacy airlines continue with their historically higher CASM operating strategy. Thus, even if both types of carriers manage to fill seats and achieve similar RASM, the low fare airlines will achieve greater profitability from their lower cost structure.
Market Share
Delta is the largest airline in the United States, capturing approximately 17.5% of the domestic commercial airline market. The top ten U.S. airlines by market share are ranked below, where market share is measured in terms of domestic revenue passenger miles.
Introduction and Overview | Trends and Forces | Competition and Market Share
References
- ↑ Reutersretrieved July 7, 2008.
- ↑ Delta 2006 10K, Item 6, pg. 19
- ↑ AirTran 2006 10K, Item 6, pg. 22
- ↑ Alaska Air Group 2006 10K, Item 6, pg. 27
- ↑ American Airlines 2006 10K, Item 7, pg. 40
- ↑ Continental 2006 10K, Item 6, pg. 29
- ↑ Frontier 2006 10K, Item 6, pg. 30
- ↑ JetBlue 2006 10K, Item 6, pg. 26
- ↑ Northwest 2006 10K, Item 6, pg. 24
- ↑ Southwest 2006 10K, Item 6, pg. 15
- ↑ United 2006 10K, Item 6, pg. 32
- ↑ US Airways 2006 10K, Item 7, pg. 44
- ↑ U.S. Department of Transportation, Bureau of Transportation Statistics
