Group report Strategic Vision for AirTran Airways? New Strategy for AirTran Airways? (4228 Words) Executive Summary On September 27‚ 2010‚ a merger of AirTran Airways and Southwest Airlines‚ two major low-fare carriers in the U.S‚ was officially announced and lead to a nearly-establishment of a “most competitive low-fare airlines”. The U.S Airlines industry had grown in competitiveness since “the deregulation act” in 1978‚ seeing increasing entry of new carriers into the industry and continuous
Premium Low-cost carrier Airline Southwest Airlines
AirTran 5 forces analysis New Entrant * The 1978 deregulation of the U.S. airline industry * The increasing of fuel price and labor costs * High competition * Brand loyalty The 1978 deregulation of the U.S. airline industry has attracted many new entries of low-cost airlines. However‚ as the competition in low-cost airline industry is very high‚ as well as the price of jet fuel and labor costs‚ many airline companies declared bankruptcy. Moreover‚ consumers start to have brand loyalty
Premium Airline Southwest Airlines Low-cost carrier
Abstract US Airways plan to create one of the two largest airlines in the United States is not without its problems. We will answer a few questions about US Airways’ hostile takeover attempt based on its success. First‚ if US Airways is triumphant‚ will it be in the best interest of Delta Airlines to be absorbed in such a takeover? A review of some pros and cons to this merger will reveal its affect on the industry. On the other hand‚ if US Airways is unsuccessful in their attempted takeover
Premium Airline Southwest Airlines Avianca
Southwest Airlines: The AirTran Acquisition Executive Summary 1. After the deregulation of the US Airline industry in 1978‚ the barriers to entry within the industry came down significantly and many Low Cost Carriers emerged overtime. 2. The emergence of rival Low Cost Carriers and the improvement in the Operation Efficiencies of Full Cost Carriers progressively eroded Southwest’s competitive advantage. 3. A closer look at AirTran’s value chain and its resultant efficiency shows
Premium Airline Low-cost carrier Southwest Airlines
Running head: MERGERS AND ACQUISITIONS Mergers and Acquisitions Southwest Airlines Acquires Air Trans Airways Dr. Penny Wilkins BUS 508: Contemporary Business – Assignment #2 May 17‚ 2014 Mergers and Acquisitions Southwest Airlines Acquires Air Trans Airways In 1966‚ while sitting in a small diner‚ Rollin King‚ a Texas businessman presented his attorney‚ Herb Kelleher with an idea. The idea entailed creating a new airline‚ one that would offer low fares to passengers and
Premium Southwest Airlines Airline
References: Schlangenstein‚ M. and Hughes‚ J. (2010‚ September 28). Southwest CEO risks keep-it-simple strategy to reignite growth. Bloomberg.com. Retrieved July 8‚ 2012‚ from http://www.bloomberg.com/news/2010-09-27/southwest-airlines-agrees-to-buy-airtran-for-1-4-billion-in-cash-shares.html Southwest Airlines Co (SWA). (2010) United States Securities and Exchange Commission: Form 10K. Retrieved July 8‚ 2012‚ from http://sec.gov/Archives/edgar/data/92380/000119312512049647/d293991d10k.htm
Premium Southwest Airlines Airline Low-cost carrier
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
Premium Airline Low-cost carrier
ticket sales. Southwest has begun to capitalize on future market opportunities by purchasing AirTran airways and is now capable of not only domestic travel‚ but traversing into the international travel market as well. This purchase allows Southwest to combat one of the company’s primary threats‚ with that being the tumultuous economy the industry has faced. The opportunities gained by the purchase of Airtran will allow the company to being capitalizing on the international market‚ and thus helping
Premium Southwest Airlines Airline Low-cost carrier
First‚ you might want to read the one page article on Southwest Airlines. The focus on the paper tells us about the organizational culture at Southwest. Then you want to do a brief google search and look for Southwest/Air Tran merger. Develop a background on the merger. Mergers present opportunities and hazards for both the company and the HR manager. When one company merges with or acquires another‚ some changes to both organizations may occur‚ such as eliminating redundant positions or combining
Premium Airline Southwest Airlines Low-cost carrier
Assessment of the Internal (Micro/Operating) Environment What is the organization’s current strategic vision? * Southwest Airlines has a mission‚ vision‚ and Triple Bottom Line Commitment to performance‚ people‚ and the planet. * The mission of Southwest airlines is dedication to the highest quality of Customer Service delivered with a sense of warmth‚ friendliness‚ individual pride‚ and Company Spirit. * The strategic vision includes a low-price and no-frills strategy‚ with a low-cost
Premium Airline Southwest Airlines Low-cost carrier