Sunday, February 17, 2013

Human Capital

I can relate almost everything in this chapter to Delta's oil refinery acquisition but I don't want to beat a dead dog.

This week I am going to talk about the recent American Airways and U.S. Airways merger that was voted on last week. The $11 billion merger creates the world's largest airline. The U.S. now only has 4 major carriers. The biggest difference between Delta and the other three is that Delta made a billion dollars and the new merger would have lost $1.2 billion.

Delta is clearly doing something right is in their human capital department. This may be there greatest resource. Their employees and management are doing something right because they are one of the only airlines that made a decent profit last year. According to Yahoo Finance, Delta took in .5 billion less than United but somehow made $1.7 billion more in net income. The leadership at Delta is making the right decisions for the company.

The employees are even above the cut when it comes to the other 5 big airlines in 2011. Delta ranked the best when it came to customer satisfaction, baggage handling, on-time arrivals, and involuntary denied boardings.

Side Note: The refinery acquisition concerns me a little because refining oil is not their core competency.

Delta also has the largest market cap, operating margin, and earnings per share.



http://www.pbs.org/newshour/rundown/2013/02/american-airlines-us-airways-merger-by-the-numbers.html
http://finapps.forbes.com/finapps/jsp/finance/compinfo/IncomeStatement.jsp?tkr=DAL
http://travel.usnews.com/features/Americas_Meanest_Airlines_2012/

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