Mulimedia
DE LA SALLE LIPA
COLLEGE OF BUSINESS, ACCOUNTANCY, AND MANAGEMENT
In Partial Fulfillment of the Requirements in
Strategic Financial Management (FINSTRA)
A CASE ANALYSIS ON:
AirTran Holdings, Inc.
Submitted by:
De las Alas, Clarisse
Jusay, Ronel
Llagas, Sarah Jane
Macatangay, Gladys
Maralit, Joshua
Montes, Jose Miguel
Obnial, Ruth Jael
Watiwat, Bryan
Submitted to:
Ms. Wilfreda Dimaano
Date:
February 1, 2013 After the large amount of negative publicity surrounding the Flight 592 disaster, ValuJet Airlines suffered serious financial problems. In 1997, ValuJet merged with AirTran Airways Corporation to form AirTran Holdings, Inc. (AAI).
INTERNAL ANALYSIS:
Strengths:
Airtran had reached its current position because it was able to employ right techniques at the right time. The company who has a low-cost structure was able to withstand their competitors by offering first class comfort at a lower price. We became cost leader in the industry making competitors to drive-down their fare so as not to lose market share. AirTran focused in segmenting their product for customers who are price-sensitive and those who travel for leisure. Market segmentation contributed a lot in our success through which, they are able to have a focal point to which their product lines will fall. In addition, we targeted underserved market to increase market share like young travelers whose age ranges from 18 to 22, and those individual business travelers. Lining up corporate and community support via public-private partnerships also give significant impact to the company. Both elements help to build loyalty and serve as a cushion against the early losses of expanding into a new city and the invariable backlash from bigger competitor. Also, the company in response to the disappointing loss of gates to Southwest diversifies their route system by adding new flights to connect cities already in its system. Lastly, the AirTran’s
COLLEGE OF BUSINESS, ACCOUNTANCY, AND MANAGEMENT
In Partial Fulfillment of the Requirements in
Strategic Financial Management (FINSTRA)
A CASE ANALYSIS ON:
AirTran Holdings, Inc.
Submitted by:
De las Alas, Clarisse
Jusay, Ronel
Llagas, Sarah Jane
Macatangay, Gladys
Maralit, Joshua
Montes, Jose Miguel
Obnial, Ruth Jael
Watiwat, Bryan
Submitted to:
Ms. Wilfreda Dimaano
Date:
February 1, 2013 After the large amount of negative publicity surrounding the Flight 592 disaster, ValuJet Airlines suffered serious financial problems. In 1997, ValuJet merged with AirTran Airways Corporation to form AirTran Holdings, Inc. (AAI).
INTERNAL ANALYSIS:
Strengths:
Airtran had reached its current position because it was able to employ right techniques at the right time. The company who has a low-cost structure was able to withstand their competitors by offering first class comfort at a lower price. We became cost leader in the industry making competitors to drive-down their fare so as not to lose market share. AirTran focused in segmenting their product for customers who are price-sensitive and those who travel for leisure. Market segmentation contributed a lot in our success through which, they are able to have a focal point to which their product lines will fall. In addition, we targeted underserved market to increase market share like young travelers whose age ranges from 18 to 22, and those individual business travelers. Lining up corporate and community support via public-private partnerships also give significant impact to the company. Both elements help to build loyalty and serve as a cushion against the early losses of expanding into a new city and the invariable backlash from bigger competitor. Also, the company in response to the disappointing loss of gates to Southwest diversifies their route system by adding new flights to connect cities already in its system. Lastly, the AirTran’s