The Merger Of Airtran By Southwest Airlines - 1910 Words

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 2010. †¢ Southwest had approximately 34,500 employees by June 30, 2010(2) with 15,069 flight, 2,464 maintenance, 15,205 ground, 2,163 management, accounting clerical personals.[2] †¢ In 2010 with the net income of $459 million, excluding special items it achieved 285% profit increase from the last year, $600 million bank line of credit and 40% debt to total capital.[2] †¢ Acquiring Morris Air and Muse Air in 1980’s Southwest emerged as one of the market leader in the American domestic aviation industry.[2] Current Southwest †¢ 9th most admired company in the world – Fortune magazine, on the top in customer satisfaction – Consumer report’s survey, nation’s first company to provide online ticketing.[1] †¢ By December 31, 2013 Southwest’s 44,831 employees handling 3,600 flights daily, 96 destination across 41 states of United States.[1] †¢ Whooping total net income of $754 million, which was nearly double the performance of 2012 with a record increase of 95%, grossed $17.7 billion inShow MoreRelatedThe Merger Of Airtran By Southwest Airlines1234 Words   |  5 PagesTitle of Case: THE MERGER OF AIRTRAN BY SOUTHWEST AIRLINES: WILL THE ORGANIZATIONAL CULTURES MERGE? Date: 09/14/2014 Name: Sagar Mehta. Critical Facts: â€Å"On Sept. 27, 2010, Southwest Airlines announced it would purchase AirTran Holdings in a $1.42 billion deal that will expand the nation s largest low-cost airline to 37 new cities.† (Young) â€Å"After Merger â€Å"Southwest becomes the nation’s fourth largest airline†. The AirTran merger would give Southwest new or expanded presence in 63 markets includingRead MoreSouthwest Airline Merger With AirTran Essay1450 Words   |  6 PagesIntroduction Southwest Airlines has come from an underdog to being one of the best airlines in the industry. This reputation translates from its strategic management of resources. The Co-founder and former CEO, Herb Kelleher, established a unique corporate culture that leads to high customer satisfaction, employees’ morale, and one of the most profitable airlines in the industry (Jackson et al., 2012). The corporate culture concentrates on empowerment the workforce. It shows through Southwest Airlines coreRead MoreCulture at Southwest Airlines on the Eve of Merger with Airtran1257 Words   |  6 PagesCulture at Southwest Airlines on the Eve of Merger with AirTran In looking at Southwest’s values and norms, it’s helpful to examine how the company’s culture is described by all stakeholders (internal – employees, management; external – investors, customers). Five key values emerge that guide the company at all levels. 1. Zealous passion for customer satisfaction Southwest’s relentless commitment goes beyond the lip service most companies uphold. From line level to the C-suite, everyoneRead MoreThe Merger of Airtran by Southwest Airlines: Will the Organizational Cultures Merge?717 Words   |  3 Pagessystems 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-Read MoreWhat Merger Is The Merger For The Company Of The Southwest Airlines Acquiring The Airtran Airways Essay1390 Words   |  6 PagesIntroduction A merger is a form of business that is made up of two or more businesses operating in the same industry coming together to better their services. One of the recent mergers that have happened is that of the Southwest Airlines acquiring the AirTran Airways for several reasons. On making this important acquisition, it is very clear that the operations of the services offered by the airline will expand to different parts of the world with some changes being needed in the parent airlines. The mergerRead MoreA Case Study On Southwest And Will Address Acquisitions871 Words   |  4 PagesMergers and acquisitions have always been around and have been popular in the United States for decades. It has been said that that mergers and acquisitions have contributed to the reconstruction of businesses during the 80’s and 90’s. The following is an analysis of a case study on Southwest and will address acquisitions, mergers, and restructuring. Acquisitions are popular in the United States and there are many reasons why a company decides to acquire another company. Companies will decide toRead MoreRydth Essay931 Words   |  4 PagesTHE 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 aRead MoreAnalysis Of Herbert David Kelleher Co. Air Southwest1414 Words   |  6 Pages1967 Herbert David Kelleher co-founded Air Southwest Co. incorporated. The year of 1971 was a game changer as Lamar Muse joined Air Southwest as President and Air Southwest changed its name to Southwest Co. The mission and vision of Air Southwest during this time was to eliminate unnecessary services and to utilize secondary airports in order to offer the lowest fares in the industry. Fast-forward to 2016 and Herb has stepped down as the chairman for Southwest, the mission however is still the same,Read MoreSouthwest Airlines Merger1237 Words   |  5 PagesBASIC STRATEGY: In order to make up for increasing expenses Southwest needs to expand. My recommended strategy for Southwest to pursue, is to merge with Air-Tran and expand into areas where Air-Tran has a heavy presence and Southwest has none. With Southwest having a weak presence in the southeastern U.S., a key area to expand would be Atlanta’s Hartsfield-Jackson International, which is the busiest airport in the U.S. There is obviously a need for the low air-fare company at this site. Southwest’sRead MoreSouthwest Airline Has Changed The Company Or Foreseeable Problems Essay1227 Words   |  5 Pagescontinues the same path that Herb Kelleher put in motion that there should be no major setbacks to the company or foreseeable problems. Southwest’s Strategies Goals Met On October, 2016 Southwest Airline has scheduled flights to 98 destinations in 41 states, Puerto Rico, Mexico, Central American and the Caribbean. Southwest has done an â€Å"A† rated job of implementing and following the initial company strategy, and a phenomenal job of growing and sustaining through highly competitive market demands. Southwest’s