Diagnosis:
In terms of airlines, Southwest is brilliant. Southwest started out as a small company, with a positive attitude and low price, and then eventually grew into one of the largest airlines in the world, with the same positive attitude and low prices. Southwest’s founders and employees knew what passengers were looking for when it came to flying, low prices and a hassle free experience and became committed to delivering both of those qualities to their customers. However, when it comes to delivering those qualities to thousands of customers all over the country daily, a company needs to be meticulous. It is my opinion that Southwest Airlines acquired AirTran too quickly, and therefore Southwest’s reputation of providing customers with low prices and a hassle free experience might compromised if the same values and positive attitudes aren’t instilled within the newly acquired AirTran employees.
Analysis:
I believe this is a key problem for Southwest, because Southwest built its company on its reputation. If this reputation becomes tarnished because AirTran doesn’t follow the same protocols or have the same positive attitudes that Southwest has, customers might start flying with competing airlines that provide low cost, such as JetBlue. Because Southwest spent so much money acquiring AirTran (1.4 billion dollars), if the acquisition fails, it’s not something that Southwest can just write off.
Recommendation:
I believe that before Southwest airlines buys AirTran, the companies should have a trial period. During the trial period, Southwest’s pilots should try to fly the Boeing 717’s, and AirTran pilots should try to fly the Boeing 737’s. Management should also rotate flight crews and air personal, that way all employees can get used to working with one another. After the trial period (which would hopefully be around 6 months), management should survey