Delta Airlines: Eliminating Necessary Information In The Decision-Making Process

Relevant costs are costs that relate to individual management decisions (What). Furthermore, the cost will change in the future based on the outcome of the decision made by management (What). The concept of relevant costs is very appropriate for eliminating unnecessary information in the decision-making process (What). Delta Air Lines can benefit in terms of relevant costs. As mentioned earlier, the airline can eliminate unnecessary information regarding certain decisions in the decision-making process for their future projects. Also, it will help the airlines to eliminate irrelevant costs and concentrate on data that is valuable in the decision-making process (What). Management has many purchase decisions to make such as buying or leasing aircraft. Another purchase decision for the airline was when they bought an oil refinery due to the high cost of oil at that time. By applying the idea of relevant costs, the management team at Delta will be able to recognize those relevant costs and stay away from the avoidable costs when making business decisions. …show more content…
Delta owns about 36% of AeroMexico and is currently active trying to own more of the company (Flight Partners). China Eastern Airlines is the second largest airline in China. This shows what an impact Delta has globally to expand their operations. However, Delta has also stopped service to the Indian market due to financial reasons (Anand). Delta is however set to expand its global operations from their Boston hub airport (New Routes). Some destinations include nonstop service to Jamaica and the Dominican Republic (New Routes). Even though they did lose one market, they gained new markets to service to. Delta will remain a top competitor in the global