Promotion and advertising strategies Essay

In 1966, while sitting in a small diner, Rollin King, a Texas noteman presented his attorney, Herb Kelleher with an idea. The idea entailed creating a mod air lane, one that would asideer low f ars to passengers and would fly quickly between three cities Dallas, Houston, and San Antonio. Together, they formed southwestward Airlines. Initially, the airline battled a number of obstacles from motley competitors of that clipping, as the other airlines did non want to see a new competitor in the remarket who offered low cost flights to local areas. patronage various attempts do to keep southwestern United States a mere vision, they de jure won the right to fly through and through the Supreme Court and began crack air service in 1971. AirTran Airways, formerly known as ValuJet Airlines, start-off began operating October 26, 1993. The Airline was renamed after the 1996 crash of ValuJet into the Florida Everglades, killing all one hundred ten passengers and crew members on boar d. Since that measure, AirTran has grown to be one of the nearly remunerative airlines in the industry, offering service to more than 60 destinations across the coupled States, as well as to Mexico and the Caribbean.On September 27, 2010, AirTran Airways made a public announcement that they entered into agreement allowing south-west Airlines to acquire them. Numerous entities key the reasons behind the acquisition are to make southwest a overabundant competitor in the airline industry, southwest is following the trend in the industry merge or acquire in order to bond alive and competitive (Mouawad, 2010). In addition, the acquisition would allow south-west to mark its presence in markets they were previously un satisfactory to penetrate, The deal would expand southwestwards network by 25 percent and give it its prototypal internationaldestinations in the Caribbean and Mexico (Mouawad, 2010). As relayed in a statement made by Bob Fornaro, AirTran president, President a nd CEO on AirTrans authoritative website, Joining south-west Airlines ordain give us opportunities to grow, both(prenominal) professionally as individuals and as a group, in ways that simply would not be possible without this agreement.Together with Southwest, the worlds largest passenger airline, their monetary resources, tremendous brand, microscope stageendary customer service, corporate culture and decades-long record of success, we will have the opportunity to go places neither company could have at peace(p) alone. As a result of the acquisition, which was completed on May 2, 2011, Southwest has experienced several unexpected glitches during the transitioning stages. One major let on has been with the ticketing and reservations systems, Southwest Airlines agents struggle with AirTran Airways tickets and vice versa, sometimes leaving passengers who have been delayed and select rebooking in the lurch (McCartney, 2013). It is describe that prices and seat availability a re absurd on both websites when attempting to book a ticket online. Customers, who purchase untimely boarding passes for their itineraries, are limited to using them just now for the Southwest leg of the trip, as it is not recognized by AirTran. This has ca use of goods and servicesd numerous complaints with customers who pay dear price for early boarding, but are only able to use it for half of the itinerary.Southwest has been diligently working to combine both airline systems, but has not successfully completed the project to date. Southwest, for now, have agents of both airlines trying to work two reservation systems on different windows of their information processing system screens so one airline can check in customers from the other. Southwest says it will have a unified system, new to both airlines, in place by the end of the year (McCartney, 2013). A prominent issue that has resulted in the acquisition is that once AirTran has been fully integrated into the Southwest Br and, upgraded position will no longer be available, as Southwest only offers coach class with unassigned seating. In addition, Southwest has been in the whole shebang to transition all aircraft from AirTrans 717 aircraft, which it inherited, to its existing 737 form. AirTran had first class, they had assigned seats, and Southwest has no first class, no assigned seats, doesnt sell through global distribution systems-a rattling different product than what AirTran offered in the market. It is very distinguishable (Boehmer, 2010).Delta 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 social organization which was instrumental in the company becoming a leading competitor in the airline industry. Founder Herb Kellehers leadership style allowed for everyone, including front line employees to play a major role in business planning and operational budgeting. Herb believed that wariness decisions are made by everyone in the organization, not just the run executives ( put forward Business Consulting Website, 2013). As a part of their organizational structure, Southwest retained over 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 717s and 52 Boeing 737s, operating in more or less 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 43,000 prescribed employees, over 700 aircraft, operating in over cytosine markets, serving 100 million customers, (Bomkamp, 2010).Southwest continues to function with three primary levels of management executive director Vice Presidents, Senior Vice Presidents, and Vice Presidents, all po sitions subordinate to Chairman of the Board, President, and CEO, Gary Kelly. Since the acquisition, Southwest has taken a slow approach 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 proboscis of Southwests existing 35,000 employees. However, industry analysts feel Southwests expectations are risky at best, It will be tricky for Southwest. Southwests whole business model is built on a particular approach to managing employees. Its a big bet they are making that they can swallow AirTran (Cappelli, 2010).According to Southwest Airlines Announcements for Reporting grammatical construction of AirTran and Leadership Changes, Human Resources Practices were modified in exploit to embrace the leadership team coming from AirTran. Almost all AirTran leaders were situated in positions with Southwest that were commensurate to positions previously hel d. The other leaders who were not placed in commensurate positions were hired on as full time consultants to ensure the integration of the twoairlines went well. Southwest airlines have maintained a precedent that was afforded in 1971, when the company first began conducting business. Southwest Airlines began with iv planes and less than 70 employees. During its first year of operation, the company experienced fiscal 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.In return, the employees were asked to cut gate turn-around from 55 minutes to 15 minutes. The employees obliged, helping to establish one of the friendliest management/labor relationships in the airline industry, as reported by PBS.org. According to Atlanta Business Chronicles, the following statement was issued to AirTran employees in the form of a Question and Answer sheet i n effort to address their concerns regarding job security, 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 nearly 40 year history, even during the most recent financial crisis, Southwest has remained profitable and has never had layoffs.This statement was in attempt to calm fears that the acquisition would bring 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 the 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 practice as non-communication results in insecurity, chaos, and hostile work environments where uncertainty is present.ReferencesA dvance Business Consulting Website (2013). Retrieved from http//www.advancebusinessconsulting.com/advance/strategic-alignment/strategic-alignment-business-cases/the-rise-of-southwest-airlines.aspxAirTran Airways Official Website, (2014). Retrieved from http//www.airtranairways.com/about-us/history.aspxAtlanta Business Chronicle, (2010). Q&A on the Southwest-AirTran merger. Retrieved from http//www.bizjournals.com/atlanta/stories/2010/09/27/daily2.htmlBoehmer, Jay (2010, November 08). Delta Sees Opportunity In Southwest, AirTran Merger. Business Travel News, (15), 4. Retrieved from http//elibrary.bigchalk.comBomkamp, S., (2010). inspire 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= saturnineCappelli, P. (2010). Strategic Management North America By Acquiring AirTran, leave behind Southwest Continue to Spread the LUV? Retrieved from http//knowledge.wha rton.upenn.edu/article/by-acquiring-airtran-will-southwest-continue-to-spread-the-luv/McCartney, S., (2013). The Wall Street ledger Southwest and AirTran Airlines Mergers and Aggravations. Retrieved from http//online.wsj.com/news/articles/SB10001424127887324448104578611980670019710Mouawad, 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=printPBS.Org (date not available). Chasing the Sun The History of Commercial melodic line Seen Through the Eyes of Its Innovators. Retrieved from http//www.pbs.org/kcet/chasingthesun/innovators/hkelleher.htmlSouthwest Airlines Official Website. (2014). Retrieved from http//www.southwest.com/html/about-southwest/index.html?int=GFOOTER-ABOUT-ABOUT