'Promotion and advertising strategies Essay\r'

'In 1966, while academic session in a small diner, Rollin King, a Texas production lineman presented his attorney, herbaceous plant Kelleher with an idea. The idea entailed creating a new air ph hotshot line, ace that would offer low f bes to passengers and would fly quickly mingled with three cities: Dallas, Houston, and San Antonio. together, they formed souwest Airlines. Initially, the airline battled a number of obstacles from various challengers of that metre, as the separate airlines did non want to see a new contest in the crown of thornset who offered low cost flights to local anaesthetic beas. Despite various attempts made to keep southwest a mere vision, they offshootally won the powerful to fly through the Supreme Court and began religious offering air service in 1971. AirTran Airship canal, formerly cognize as ValuJet Airlines, first began operating October 26, 1993. The Airline was renamed afterwards the 1996 crash of ValuJet into the Florida Evergl ades, killing all 110 passengers and ring members on board. Since that time, AirTran has grown to be one of the just about profit subject airlines in the industry, offering service to more than 60 destinations across the United States, as hygienic as to Mexico and the Caribbean.\r\nOn September 27, 2010, AirTran Airways made a public announcement that they entered into agreement allowing southwestward Airlines to get word them. Numerous entities report the reasons behind the acquisition atomic number 18: to make southwesterly a dominant competitor in the airline industry, â€Å" southwestern United States is following the edit in the industry: merge or achieve in order to stay alive and hawkish” (Mouawad, 2010). In addition, the acquisition would allow southwestward to mark its presence in markets they were previously un satisfactory to penetrate, â€Å"The passel would expand southwestern’s net head for the hills by 25 percent and give it its first tra nsnational destinations in the Caribbean and Mexico” (Mouawad, 2010). As relayed in a bidding made by Bob Fornaro, AirTran Chairman, President and chief executive officer on AirTran’s official website, â€Å"Joining southwestward Airlines will give us opportunities to grow, both professionally as individuals and as a group, in ways that simply would not be possible without this agreement.\r\nTogether with Southwest, the world’s largest passenger airline, their financial resources, abominable brand, legendary customer service, corporate culture and decades-long leger of success, we will prepare the opportunity to go lines neither comp both could convey gone alone.” As a result of the acquisition, which was fault little on May 2, 2011, Southwest has see several unexpected glitches during the transitioning stages. One study issue has been with the ticketing and reservations systems, â€Å"Southwest Airlines agents struggle with AirTran Airways tic kets and vice versa, sometimes leaving passengers who have been delayed and need rebooking in the lurch” (McCartney, 2013). It is reported that prices and seat availability atomic number 18 inconsistent on both websites when attempting to book a ticket online. Customers, who purchase early boarding passes for their itineraries, are limited to using them solo for the Southwest leg of the trip, as it is not recognized by AirTran. This has caused many complaints with customers who pay full price for early boarding, besides are only able to use it for one-half of the itinerary.\r\nSouthwest has been diligently working to combine both airline systems, but has not success in full completed the project to date. â€Å"Southwest, for now, have agents of both airlines trying to work two reservation systems on unlike windows of their computer screens so one airline can escort in customers from the otherwise. Southwest says it will have a unified system, new to both airlines, in p lace by the end of the year” (McCartney, 2013). A bounteous issue that has resulted in the acquisition is that once AirTran has been fully integrated into the Southwest Brand, upgraded set will no longer be available, as Southwest only offers coach class with unassigned seating. In addition, Southwest has been in the works to transition all aircraft from AirTran’s 717 aircraft, which it inherited, to its animate 737 ideal. â€Å"AirTran had first class, they had assigned seats, and Southwest has no first class, no assigned seats, doesn’t consider through global distribution systems-a very different product than what AirTran offered in the market. It is very distinguishable” (Boehmer, 2010).\r\nDelta Airlines and other major competitors feel they will be able to capture former AirTran customers, who find the elimination of upgraded seating unacceptable. Prior to the acquisition, Southwest Airlines had an organizational organize which was instrumental in the troupe becoming a in the lead competitor in the airline industry. Founder Herb Kelleher’s leadership style allowed for everyone, including front line employees to play a major role in business planning and operational budgeting. Herb believed that â€Å" focusing decisions are made by everyone in the organization, not just the head executives” (Advance Business Consulting Website, 2013). As a part of their organizational structure, Southwest maintained oer 35,000 employees, had 568 Boeing 737 model aircraft, and operated in 67 domestic cities coast-to-coast. Whereas AirTran, who operated with a similar organizational model, listed assets of 8,500 employees, 86 Boeing 717’s and 52 Boeing 737’s, operating in approximately 37 markets. Southwest Airlines has not made major changes to their organizational structure as a result of the merger. The new Southwest airlines assets contain: â€Å"43,000 plus employees, over 700 aircraft, operating in over 1 00 markets, serving 100 one thousand million customers”, (Bomkamp, 2010).\r\nSouthwest continues to function with three primary levels of focus: Executive misdeed Presidents, Senior Vice Presidents, and Vice Presidents, all positions subordinate to Chairman of the Board, President, and CEO, Gary Kelly. Since the acquisition, Southwest has interpreted a slow approaching to integrating AirTran systems, procedures, and employees into the Southwest family. Southwest appears to believe they will be able to seamlessly integrate 8,500 AirTran employees into the body of Southwest’s existing 35,000 employees. However, industry analysts feel Southwest’s expectations are risky at best, â€Å"It will be satiny for Southwest. Southwest’s whole business model is built on a particular approach to managing employees. It’s a big bet they are making that they can swallow AirTran” (Cappelli, 2010).\r\nAccording to Southwest Airlines Announcements for Repor ting Structure of AirTran and Leadership Changes, Human Resources Practices were modify in run to embrace the leadership police squad coming from AirTran. Almost all AirTran leaders were position in positions with Southwest that were competent to positions previously held. The other leaders who were not placed in commensurate positions were hired on as full time consultants to ensure the integration of the two airlines went well. Southwest airlines have maintained a precedent that was established in 1971, when the company first began conducting business. Southwest Airlines began with four planes and less than 70 employees. During its first year of operation, the company experienced financial trouble, forcing the executives to make the decision to sell one of its planes or lay off employees. In effort to maintain the relationship with its employees, Southwest opted to sell the plane.\r\nIn return, the employees were asked to cut gate turn-around from 55 minutes to 15 minutes. Th e employees obliged, helping to establish one of the friendliest management/ get relationships in the airline industry, as reported by PBS.org. According to battle of Atlanta Business Chronicles, the following story was issued to AirTran employees in the form of a Question and resultant role sheet in effort to address their concerns regarding origin security, â€Å"The combination of the two airlines will result in additional employment opportunities as the combined airline continues to grow and expand the Southwest network. In its about 40 year history, even during the most recent financial crisis, Southwest has remained profitable and has never had layoffs.”\r\nThis report was in attempt to calm fears that the acquisition would have surrounding job stability. As in any industry, when employees are facing major changes in the workplace, in particular as it relates to mergers and acquisitions, it is important to communicate plans for the direction of the company and t he employees involved. This strategy allows time for the employees to process the information they have been given and adjust to the changes to come. It is imperative that companies model this apply as non-communication results in insecurity, chaos, and hostile work environments where dubiousness is present.\r\nReferences\r\nAdvance Business Consulting Website (2013). Retrieved from http://www.advancebusinessconsulting.com/advance!/strategic-alignment/strategic-alignment-business-cases/the-rise-of-southwest-airlines.aspx\r\nAirTran Airways Official Website, (2014). Retrieved from http://www.airtranairways.com/about-us/history.aspx\r\nAtlanta Business Chronicle, (2010). Q&A on the Southwest-AirTran merger. Retrieved from http://www.bizjournals.com/battle of Atlanta/stories/2010/09/27/daily2.html\r\nBoehmer, Jay (2010, November 08). Delta Sees Opportunity In Southwest, AirTran Merger. Business spark News, (15), 4. Retrieved from http://elibrary.bigchalk.com\r\nBomkamp, S., (201 0). Huff Post Travel: Southwest Airlines Buys AirTran for $1.4 Billion. Retrieved from http://www.huffingtonpost.com/2010/09/27/southwest-airlines-airtran_n_739975.html?view=print&comm_ref=false\r\nCappelli, P. (2010). strategic Management North America: By acquiring AirTran, Will Southwest Continue to Spread the LUV? Retrieved from http://knowledge.wharton.upenn.edu/ article/by-acquiring-airtran-will-southwest-continue-to-spread-the-luv/\r\nMcCartney, S., (2013). The Wall Street Journal: Southwest and AirTran Airlines: Mergers and Aggravations. Retrieved from http://online.wsj.com/ newsworthiness/articles/SB10001424127887324448104578611980670019710\r\nMouawad, J., (2010). The New York Times: Southwest, Determined to Expand, Buys AirTran. Retrieved from http://www.nytimes.com/2010/09/28/business/28air.html?_r=0&pagewanted=print\r\nPBS.Org (date not available). Chasing the cheerfulness: The History of Commercial Aviation Seen Through the eye of Its Innovators. Retrieved from http://www.pbs.org/kcet/chasingthesun/innovators/hkelleher.html\r\nSouthwest Airlines Official Website. (2014). Retrieved from http://www.southwest.com/html/about-southwest/index.html?int=GFOOTER-ABOUT-ABOUT\r\n'