Southwest Airlines Merger - 1237 Words

BASIC 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’s unique approach of no extra charge for luggage and extra friendly service should help Southwest. The merger is estimated to cost Southwest $1.4 billion dollars; Air-Trans income for 2010 was around $128 million, and along with the 138 new†¦show more content†¦During the process of the absorption, there will need to be strong communication to the customers to let them know when exactly changes will be taking place. Updates should be kept daily on Southwest’s we bsite and up-to-date information should be presented to all passengers when booking flights. Television commercials should be ran (especially around the Atlanta area) showing newly remodeled planes that once carried AirTran customers and show major improvements appealing to both vacationers and business travelers. Strong communication on how the AirTran frequent flyer miles will implemented by Southwest. This could be an area of major conflicts between Southwest and old loyal AirTran customers, but strong communication could easily prevent many conflicts. Shared Values: The unique culture and values of Southwest Airlines has been one of the key factors of Southwest’s success over the years. Southwest’s CEO feels that the employees of Southwest are the company’s single greatest strength and most enduring long-term competitive advantage. Getting AirTran’s acquired employees to commit to the shared vision of the company will be another key implementation lever during the acquisition process. Southwest really values a fun and loving atmosphere among employees and passengers. Employees and management go out of their ways to implement these values and AirTran employees will be expected to share these values as well as management strives for total alignment. (SuccessfulShow MoreRelatedThe Merger Of Airtran By Southwest Airlines1910 Words   |  8 Pages THE MERGER OF AIRTRAN BY SOUTHWEST AIRLINES: WILL THE ORGANIZATIONAL CULTURES MERGE? 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With the passage of the Airline Deregulation Act in 1978, it opened a new chapter for the airline industry (Air Transport Industry, 2014). Thought out the past 110 years, the airline industry progressed with technology aspect as well as the economic aspect; recessions, economic downturns and oil crisis have impacted the