1. What would be the effect of a sharp decline on passengers for a firm with a micro-economic structure such as the one Delta had in place during 2001? Is Delta's operating leverage high or low?

2. Analyze the proposal to launch Song as a response to the situation the firm is facing.Do you agree with this solution? Why? What would be some possible alternatives or alternative?

Delta's New Song: A Case on Cost Estimation in the Airline Industry Dikolli, Shane S;Sedatole, Karen L Issues in Accounting Education; Aug 2004; 19, 3; Business Premium Collection pg. 345 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission