AirTran Airways

THE MERGER OF AIRTRAN BY SOUTHWEST AIRLINES: WILL THE ORGANIZATIONAL CULTURES MERGE? Date: Sep 13, 2014 Harshdeep Sikarwar Critical facts • Southwest Airline Co. is nation’s largest airline company established in June 18, 1971 headquartered in Dallas, Texas, with a 41 year continuous profitability record.[1] Southwest before Merger • Even in the one of the worst year of American history, with an ongoing recession Southwest was able to maintain its profitability for consecutive 38th year in

THE MERGER OF AIRTRAN BY SOUTHWEST AIRLINES:WILL THE ORGANIZATIONAL CULTURES MERGE? Southwest’s merger with AirTran, valued at over US$3 billion, makes Southwest the fourth largest American carrier. The merger increases Southwest’s presence in a number of major cities, most notably New York (LaGuardia) and Washington D.C. (Ronald Reagan National Airport). Thanks to AirTran, it now flies into the coveted Atlanta’s Hartsfield-Jackson Atlanta International, the world’s busiest airport, along with a

a problem to Southwest Airlines. In April, 2006, Southwest Airlines has announced their plans for expansion into the Washington Dulles International Airport. Their plan is to compete with the other budget carriers there such as Jetblue and AirTran Airways. United Airlines, one of the bigger airlines, will also be one of their competitors. Many believe that this move by Southwest Airlines was a defensive move after they saw other budget carriers start to take the passengers. They're trying to

systems development: AirTran uses Navitaire as reservations system vendor while Southwest uses Sabre to better accommodates international flights. Also, AirTran uses online travel agencies for ticket distribution while Southwest sells its tickets via telephone and its website. Management and strategy: Southwest airlines have a different approach in managing and training its employees. Also Southwest culture focuses on employees and customers having a good time while flying. AirTran believes in lower-

assets found in their acquired airline AirTran Airways (LeBeau, 4) . Southwest Airlines has brought low rates and a great experience to the domestic market, which was warmly received, they now plan to dip into global market to bring better service to all. Southwest Airlines has recently acquired AirTran Airways, which was a global company, this acquisition it put Southwest in a great spot to expand to the global market. Southwest is integrating the AirTran Airways international stops in Aruba, Jamaica

America • The Southwest-AirTran merger valued at over $3billion. (Pearlson and Saunders 97) • “With very little route overlap between Dallas-based Southwest and Orlando-based AirTran, the acquisition could increase Southwest's network by 25% and boost its weekly departures--already more than twice those of any other LCC--to about 26,000. Southwest generated $11.2 billion in revenue for the 12 months ending June 30; AirTran generated $2.5 billion” (Compart, 2010) • AirTran had flights to International

Orville and Wilbur Wright brothers were the pioneers of aviation since its first flight performed in 1903 in a heavier than the air machine in North Carolina; but it was not until World War II, when in-flight travel achieved a prominent place in other countries, prompted the beginning of a new way of communication and a new business. When the reorganization of the airlines in operation occurred, the network of scheduled flights from fixed itineraries comprehensive and competitive race began in improving

Southwest Airlines Case Study 1. Company Overview Southwest airlines began in 1967 as a low-cost, low-fare, customer-friendly air service shuttling passengers between San Antonio, Dallas and Houston, Texas. Founded by Rollin King and Herb Kelleher, Southwest moved from a small commuter transport of 18 round trip flights within Texas to a bustling market share leader providing more domestic flights than any other airline within the industry. Within two years of its first flight the airline

the number of passengers flying Southwest Airlines had increased by more than about 42 million annually, whereas the number of passenger traffic on domestic routes declined for carriers like Delta, American Airlines, Continental, United, and US Airways. In November 2007, Southwest airlines introduced a new Business Select fare to appeal to economy-minded business travelers. The Business Select customers received perks such as refundable and changeable fares as well

on customer service. Southwest utilizes only the Boeing 737 to streamline their processes, and utilizes their award winning Southwest.com to drive ticket sales. Southwest has begun to capitalize on future market opportunities by purchasing AirTran airways and is now capable of not only