Delta Song CaseSummaryU.S. Airlines today are facing many problems which will ultimately lead to lower profits. Increased airport security, fewer people willing to travel and a declining economy have put the airline industry at a disadvantage. Delta Airlines recently announced a second-quarter loss of $2 billion. Delta has lost ground to smaller airlines that fly the same routes that provide Delta with about 70% of its revenue. Delta Airlines will attempt to become the first major carrier to successfully launch a long-range, low-cost competitor. In the past year alone, low-cost carriers such as Jet Blue have claimed more than 80 percent of the market share on New York-Florida flights. The new airline will be called Delta Song and will cost $75 million. The Delta Song concept will use a single type of aircraft, the Boeing 757, which will be equipped with leather seats, interactive monitors that will allow users to watch pay-per-view movies, play interactive games and shop online . Song flights will fly between selected cities. Song aircraft will offer faster turnaround times of 50 minutes from landing to takeoff. Flight time is expected to be around 13 hours per day, 23% longer than the mainline Delta. Delta Song's goal is to compete with smaller airlines that will lead Delta out of Chapter 11 and back to profitability and future success. AnalyzeDelta will need to move ticket sales operations from travel agents or Delta representatives to the Internet. Online ticket sales accounted for 13% of all sales in 2003. The average ticket purchased online can save Delta $8 to $10; due to less expense for employees or call centers responsible for booking tickets. Creating a marketing plan to promote the use of Delta's website for tickets or incentives such as on-board amenities could increase total online ticket sales. The Nervous System already gives Delta a competitive advantage, but it could also facilitate online operations, allowing Delta to create a simple online interface for users to easily purchase tickets. This system would allow Delta to reduce labor expenses related to excessive calls to customer service and company representatives. As Delta plans to move away from the Apollo reservation system, it will be able to reduce costs that would allow travel agents to earn their commissions. from the sale of plane tickets.