A Case Study in Change: Delta Airlines
Unlike restaurants, airlines did not have much existing infrastructure to carry them through a global pandemic. Airlines profits are based on the tickets they book, and if nobody is willing to fly, airlines can’t just pivot to a “take-out” travel option. After the pandemic hit, airlines were faced with a crucial ultimatum: find an innovative solution or suffer catastrophic losses. Delta Airlines, one of the oldest and largest airlines in the country, decided to tackle the change head-on and immediately started working on a change management plan.
Delta began by interviewing past clients and identifying why its customers were reluctant to fly. Delta had implemented a number of new sanitation and safety features that could protect passengers against COVID-19, including improving airflow in the cabins and requiring face masks. However, customers were still shying away from air travel. From its client interviews, Delta determined that clients were afraid of being seated next to strangers, even if those strangers were wearing face masks. Though it cost in the short term, Delta made the decision to stop selling tickets for middle seats so that there would always be space between passengers. As a result, Delta had 9% fewer seats to sell than their competitors, but, even so, Delta’s revenue was “12% higher than the average of American, United and Southwest combined.”
Delta structured changes to its operations around, what would make customers more comfortable and ultimately found that Delta structured changes to its operations around, what would make customers more comfortable and ultimately found that customers were willing to pay for some extra peace of mind. Implementing the change was made easier by quick and effective communication across all levels of operation.
Flight attendants, gate staffers and corporate communications professionals were given the tools they needed to communicate the company’s safety plan to prospective passengers and execute the new seating rules. As the immediate changes took effect and began yielding results, Delta worked on making the changes more efficient and seamless, refining its process every step of the way.
Questions:
- a) What Organisational and technological changes were brought in by the airline?
- b) What was the role played by employees and other stakeholders and how did it benefit the airline?
- c) Describe the proactive approach of the airline.