Airline Mergers at a Crossroads: Southwest Airlines and Airtran Airways

2010 ◽  
Author(s):  
Diana L. Moss
2015 ◽  
Vol 31 (8) ◽  
pp. 20-22 ◽  
Author(s):  
Reetesh Sharma ◽  
Mark Thomas

Purpose – This article highlights the essential factors to be considered for successful mergers and acquisitions (M & As) in the aviation industry. The article draws insights from the successful deals between Morris and Southwest Airlines as well as Cathay Pacific and Dragonair. Design/methodology/approach – The article is a case study of two successful mergers in the airline industry, one in the USA and one in Asia. Findings – M & As in the airline industry are loaded with difficulties. These include problems of brand identification, opposition from key stakeholders and the need of forming one coherent organisational culture. However, this does not mean that they are impossible. Two large-scale mergers have shown that successful mergers can occur in the industry. Originality/value – This article gives examples of two successful M & A deals from the aviation industry and shows the important factors to achieve this.


2007 ◽  
Author(s):  
Charles D. Bailey ◽  
Allison Collins ◽  
Denton Collins ◽  
Kenneth R. Lambert

2021 ◽  
Vol 13 (4) ◽  
pp. 105-119
Author(s):  
Gang-Hoon Seo

Since Southwest Airlines' disruptive innovation was introduced, low-cost carriers (LCCs) have had a prominent impact on the aviation industry. Therefore, considerable attention has been paid to the LCC model. However, it is still not clear whether it is a successful disruptive innovation, or what factors and differentiation points for successful LCC service exist from the passengers' perspective. As this study's methodology, quantitative and qualitative content analyses are conducted using the word-of-mouth data of 1,854 passengers of 20 airlines. This study found that the LCC model is perceived as a successful disruptive innovation from the passengers' point of view. For successful LCC service, LC airlines should offer higher quality services than passengers' expectations using basic service elements. Also, good staff characteristics, leaving a professional impression, and providing good optional services could play a role as differentiation tools.


2017 ◽  
Vol 25 (6) ◽  
pp. 6-9 ◽  
Author(s):  
M.S. Rao

Purpose The purpose of this research paper is to place an emphasis on the philosophy of “employees first, customers second, and shareholders third”. Design/methodology/approach It outlines the advantages of this philosophy and illustrates with examples of global companies including Google, Virgin, Alibaba, Facebook, LinkedIn, FedEx Corporation, Southwest Airlines, Whole Foods, and Costco. Findings It concludes to treat your employees as assets and convert them into your brand ambassadors to accomplish organizational goals and objectives. Practical implications These strategies can be applied in any industry and in any size of organization. Social implications The social implications of this research suggests that leaders can achieve organizational excellence and effectiveness by adopting these strategies. Originality/value It substantiates that employees are the true value creators for any organization. It explores soft leadership and elaborates the changing mindsets of the employees globally. It enlightens to treat people as people and partners, not as workers.


2021 ◽  
Vol 10 (3) ◽  
Author(s):  
Mihir Kelkar ◽  
Cosmin Borsa ◽  
Lina Kim

Following a Low-Cost Carrier (LCC) model, Southwest Airlines has consistently demonstrated growing annual revenues up until the start of the COVID-19 pandemic. Southwest’s quarterly revenue shows that there exists a strong seasonal component with the revenue in the first quarter of the fiscal year (September) significantly higher than other quarters. Using the quarterly revenue data we constructed a time-series model: a seasonal autoregressive integrated moving average (SARIMA) model to forecast Southwest’s revenue over 2020. We then performed a cost and solvency risk analysis using the company’s financial results from its annual reports to analyze Southwest’s financial performance due to COVID-19, and proposed business strategies to keep Southwest financially stable.


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