Wait a second!
More handpicked essays just for you.
More handpicked essays just for you.
Us airways case study
Don’t take our word for it - see why 10 million students trust us with their essay needs.
Recommended: Us airways case study
Summary The main purpose of this paper is to critically review the story of one airline, that is, US Airways, which came together with American Airways in the year 2013 to merge and become one of the biggest airline in history. However, this paper essentially covers how US Airways participated in the creation of the airline and how it overcame some obstacles. The writer briefly explains how both the airlines were born. The birth of the American was in Dallas in 1934, Smith C.R, and Cord E.L created it. The birth of the US Airways was in Pittsburgh in the year 1939. Ed Colodny created it and it was the actual opposite of the American. This paper will specifically cover US Air, which was pioneered by Uncle Ed Colodny. He was just eighteen years …show more content…
In 2000 United Airways and US Airways decided to merge but the merge failed after it was declined by the Justice department claiming that competition would ease, which meant that the airlines would increase their fares and harm passengers. The airline economy fell literally after the collapse of the merge and this did not end until September 2001 when terrorist’s attack came shortly after the bankruptcy. US Airways was affected greatly when Washington’s Reagan National Airport was closed for three weeks and US Airways was the dominant of the bearer. What Wolf anticipated never happened and followed his retirement leaving the airline with a new CEO, Rakesh Gangwal who later in November 2001, resigned. Instead, Wolf run the airline in day-to-day role until March 2002 when David Siegel took over as the new …show more content…
I can however say that, it is due to these setbacks that US Airways encountered that made it strong and able to close a big deal with the American. Going through bankruptcy and terrorist attacks simultaneously almost made the company fall but due to the consistent and critical decision making of its management, the company still operates. Before the merge with the American, US Airlines had several Chief Executive Officers who some made some wins and some fell it out of agreements with its lenders. This however, was how the company was able to become creative and merge with another big firm to create an even bigger company. Through the management of smart, social and engaging CEOs, the employees were treated as respectfully as they should and this made the company going and it met its customer’s needs. However, during the Wolf’s management he was not an engaging leader like the likes of Ed Colodny and did not know his worker’s needs that then prompted to a protest that somehow delayed the firm’s performance. Shortly later, the company recovered since the firm did not go through a major
For starters a few days before the attack on 9/11, the airlines stocks did go up. Which means the supply and demand was greater. America was making more money, which is good. The airlines that stocks markets went up, were the airlines that were hijacked which than lead to them going bankrupt. Gabi Logan was saying on USA today “ Despite this government-funded measure, several prominent American airlines declared bankruptcy not long after the 9/11 attacks.” Due to bankruptcy more than just money was
"In early 2000 Air Canada along with entire airline industry faced huge loss due to the high global economic downturn. With slow travel outstanding to the downturn and September 2011 incident the airline industry was hit extremely hard. Air Canada consequently posted net losses of $1.32 billion in 2001 and $828 million in 2002. Furthermore, with the spread for SARS disease Air Canada’s Asian route got effected
Delta Airlines was founded by C.E. Woolman, who was an agriculture extension agent. He was not as aggressive,
Along with the low stock index numbers of September 17th, the airline industry and travel stocks were also rocked. One of several airlines announcing layoffs, US Airways said that they would be terminating 11,000 jobs. These heavy losses were contributed to airlines “being grounded last week [week of September 11th], plus passengers have been apprehensive to fly, in the wake of the hijackings” (Stock Markets Reopen 1).
Since its first grand opening in 1971, Southwest Airlines has shown steady growth, and now carries more passengers than any other low-cost carrier in the world (Wharton, 2010). To expand the business operations, Southwest Airlines took over AirTran in 2010 as a strategy to gain more market share for the Southeast region and international flights. However, the acquisition of AirTran brought upcoming challenges both internally and externally for Southwest Airlines. In this case analysis, the objectives are to focus on the change process post the merger with AirTran, and to evaluate alternatives to address the impacts of the merger. II.
After September 11th, 2001, the airline industry experienced a significant drop in travel. The reasons for the airline industry downfalls also included a weak U.S and global economy, a tremendous increase in fuel costs, fears of terrorist's attacks, and a decrease in both business and vacation travel.
"Problems" in the airline industry have not risen due to too much competition within the industry. To the contrary, Washington regulators should turn the industry loose in any more ways that it can. Lowering restrictions to enter the market place, emphasizing private ownership of aviation matters, and encouraging open and free competition within the scope of anti-trust law should be the goals of the Clinton Administration. Instead of heading towards re-regulation, Washington should get out of the airline business for good.
While sitting in Atlanta’s Hartsfield International Airport, one cannot help but to notice and feel an overwhelming dominant presence of one particular airline. Delta as we know it today, traces its roots way back to 1924. Huff Daland Dusters was founded as the world’s first aerial crop dusting organization. In 1928 the company became Delta Air Service, and the following year Delta carried its first passengers over a route stretching from Dallas, Texas to Jackson, Mississippi with stops in Shreveport and Monroe, Louisiana. In 1941, the company moved its headquarters from Monroe to Atlanta, Georgia.
Northwest Airlines is one of the pioneers in the airline transportation industry and is ranked at the fourth largest air carrier in the United States today. The success of the carrier depends on the quality and reliability of the service at a reasonable price. Close competitors force Northwest to innovate their services by increasing efficiency. This essay will try to examine different perspectives in the services needed to successfully complete the company’s objectives. The analysis will explain historical and financial perspectives that may give a better understanding of the current market trend of the organization.
Sears Holdings is a company in transition. Now, faced with adversity and the threat of bankruptcy looming its leadership has come under scrutiny. “Great leaders not only have drive; they want to lead. Also important is a high need for power, a preference to be in leadership rather than follower positions. A high power need induces people to attempt to influence others, and sustains interest and satisfaction in the process of leadership. When the power need is exercised in moral and socially constructive ways, rather than to the detriment of others, leaders inspire more trust, respect, and commitment to their vision (Bateman, pp 399, 2007).”
By 1914 aviation technology was sophisticated enough to make airplanes valuable wartime tools. In 1918, the U.S. government found an important peacetime role for aviation: delivering mail. Entrepreneur Walter T. Varney launched his U.S. "air mail" operation April 6, 1926, marking the birth of commercial aviation in the United States. Because Varney was a predecessor of United, it also marked the birth of the airline.
This was a sad day for everyone in both the immediate and extended “Delta family,” a day perhaps as sad in its own way as the death of Mr. Woolman almost 40 years before. The sadness mixes with fear by employees and retirees, their families, stockholders, customers, vendors, taxpayers, governments and all others among the tens of thousands impacted by the bankruptcy. Leadership decisions by Delta’s Board and CEO’s over a long period of years laid the foundation for Delta to be in a position where the factors would have a large enough impact to result in bankruptcy. By promoting Ron Allen to CEO, primarily because he had moved up the chairs in the company through Beeb’s efforts, the Board showed their lack of awareness of the need for a strategist to deal with the fundamental changes taking place in the airline industry. Then the Board brought in Leo Mullin and gave him free rein for 6 ½ years to turn a cash rich company into one in such poor shape financially that his successor had to turn to expensive sources of money to keep the company
Lufthansa, one of the world’s biggest airliners, has divisions handing maintenance, catering and air cargo. Since the World War II the airline industry has never earned its cost of capital over the business cycle (Hitt, 2010). Most of the airline companies have either filed for bankruptcy or are being bailed out by their government. Lufthansa had also gone through these tough times, but had resurfaced to become one of the worlds most profitable airline company. The company adapted a transnational strategy, seeking to achieve both global efficiency and local responsiveness. Lufthansa’s monopoly in Germany came to a halt with the creating of the European Union. All the EU member countries become one regional and therefore the European competition became, an increasingly a local competition. Lufthansa created its regional Hubs, to cater for its domestic market. But the availability of substitutes such as bullet trains and the Euro tunnel, made is necessary for Lufthansa to create short traveling time, customizations and quality standards in the region to achieve a competitive advantage. But outside the EU there are no substitute to air travels as such all the flag carriers are competing in the market, the international airline industry is a highly competitive environment. A new force has also emerged in the world of air travel, in the form of three Gulf airlines with jumbo ambitions. Within a decade Dubai’s Emirates, Qatar Airways and Eithad from Abu Dhabi have between them carried the capacity of two hundred million passengers (Micheal, 2010). The company had to go global and therefore adopted the international corporate-level strategy, where Lufthansa will ope...
Tom, Y. (2009). The perennial crisis of the airline industry: Deregulation and innovation. (Order No. 3351230, The Claremont Graduate University). ProQuest Dissertations and Theses, , 662-n/a. Retrieved from http://search.proquest.com/docview/304861508?accountid=8364. (304861508).
Several large scale, interrelated conditions have affected the airline industry over the past several years in such a manner that every carrier has had to respond in order to remain viable and competitive.