Taken together, all these economic factors are making the turn-around of the losses AirTran is experiencing extremely difficult. The reductions in employees will not fix the more systemic and more strategic issues the company faces; it will however buy them time to get their fundamental business reorganized and downsized to a point where they can operate profitably given the severe constraints on their business today. It is a very tough time to run an airline today as is shown in the article. The greatest challenge internally is to keep the existing employees motivated and focused on working productively while 480 job cuts were announced for September of this year. Everyone is literally wondering if they will be let go, and in this type of environment, not much work is going to get down. The article states that "the announcement comes less than a week after AirTran said it would seek an average 10% pay cut across its 8,900-employee workforce." Morale has got to be quite low in the company right now as a result. The article further states that "They will be timed to coincide with overall service cuts that AirTran plans to make beginning in early September, when it will reduce its flying schedule by at least 5%." This strategy of reducing routes and correspondingly reducing headcount with pilots by 12%, reducing flight...
These are all interim steps that don't cause too much pain for the company yet they are short-term and just delay the inevitable.
AirTran Continue Successful to Be Successful in This Highly Competitive Industry? The objective of this study is to answer the question of whether AirTran will continue to be successful in this highly competitive industry. According to Rouse (n.d.) in her work on AirTran Holdings, Inc., the ability of AirTran Airways to grow in the worst environment for the airlines in a long time and stated to be an unexpected turnaround. The
Overall, AirTran Airways has successfully achieved high profits, which are consistently growing on an annual basis. This growth is due in great part to the effective marketing and promotional activities developed and executed by the company. Whether it be promotional campaigns aimed at specific target markets, such as youth or business travelers, or through sales campaigns aimed at attracting customer of all types through the promotion of low fares, AirTran
Another issue is the legal/political power that Southwest has (or does not have, in relation to its rivals). Ultimately, the company has suffered as the result of the Wright Amendment, and it needs to leverage its current size to fight back against American Airlines over this legislation. Not only should Southwest fight for the amendment to be repealed in its entirety and immediately, but it should fight for punitive
Business Studies Southwest Airlines Southwest Airlines has been a highly successful airline, it has been one of the most successful airlines in U.S. history with the low cost carrier model created by Southwest emulated successfully by many other airlines across the world. Today it is the largest domestic carrier in the U.S. And has a history of consistent profits, with on a few quarters in the recent recession showing losses (Southwest Airlines,
Another is high labor productivity, yet another is high asset utilization. The net result is that AirTran has one of the lowest levels of cost per ASM in the industry. In terms of weaknesses, one major weakness is that AirTran has no discernable source of sustainable competitive advantage. Its success to date has been based on its ability to combine many small sources of advantage into a single airline. Yet,
The company enjoyed spectacular growth and profitability under the leadership of its former chief executive officer, Herb Kelleher, and the company's current leadership has picked up where Kelleher left off by continuing his corporate vision for Southwest but in expanded ways. The question therefore remains whether Southwest has bitten off more than it can reasonably chew given that its track record of success is built on the original business
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