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Air Tran Revisado

Published on May 2019 | Categories: Documents | Downloads: 4 | Comments: 0
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Content

MISSION “Innovative people dedicated to delivering the best flying  experience to smart travelers. Every day.” 

VALUES Safety—in every decision and every action, every time, every day. Courtesy

Teamwork

Pride

Innovation Service

HUMAN RESOURCES Robert Fornaro Chairman Stephen Kolski Operations and

President & Chief Executive Officer  Executive Vice President,

Corporate Affairs Arne Haak Officer 

Senior Vice President of Finance, Treasurer and Chief Financial

SWOT Strengths –  S  New planes consume 24% less • fuel than old planes • Has remained profitable despite airline conditions • Business class on all flights • Additional seating in place of  galley / no meals are served Average age of planes is 2.5 • years

Weaknesses –  W Only domestic flights offered. • • Primarily east coast flights. • Among lowest rated for  “ on time ” performance • Heavy reliance on Atlanta, Georgia  Net income dropped from 100.5 • million to 12.3 million (20032005 respectively)

Opportunities –  O • Appeal to public due to new, “ safe ” , planes. • International Expansion. Domestic Expansion. • • Allow for computer reservations. •  Negotiations between United States and Mexico / possibly more flights to Mexico

SO Strategies Expand more flights to west • coast / Mexico (S1, O3, O5) • Advertise business class to firms throughout the country (S3, O3) Advertise the number of  • available seats to all of North America (S4, O3, O5)

WO Strategies Expand domestically / West Coast • and Mexico (W1, W2, W4, O3, O5) • Create another main hub other  than in southeast (W2, W4, O3) Create cost efficient computer  • reservation system (W5, O4)

Threats –  T • Unionized workers / possible strikes. • Rising Fuel Costs Major competitors in same • market. • Society ’s view of flying after  September 11 Eastern / Southeastern weather  •

ST Strategies • Advertise shared cost savings due to fuel-efficient planes (S1, T2) • Advertise new, “ safe ” planes (S5, O4) Expand short haul flights / •  business class on west coast (S3,

AirTran Airways SWOT Matrix

WT Strategies Expand domestically (W1, W2, • W4, T3, T5) • Relocate main hub (W4, T3, T5)

CUSTOMER VALUE PROPOSITION

•  AirTran reward program • 700 daily flights • 57 destinations • Low Cost quality • Service Oriented • Response time • Real time desision response

 AirTran’s strategy is one of low cost within a narrow geographic  area  Atributes

Competition

Low-cost , wide emphasis on cost controls High labor productivity High asset utilization. - 2aircraft types - 86 Boeing 717 - A new fleet of 50 Boeing 737

- 2 new aircrafts - Cost advantage

- 1 old aircraft - Cost advantage

STRATEGY PROPOSAL

INCOME STRATEGIES Auxiliary products and services

Grow Client Value



Optional fees for advance seat asigment



Diffetentiaition Strategy



Call center fees



Web service



Pet fee



 Alcoholic drinks



Free Xm Radio



Excess baggage



Wifi availability in every flight



Unaccompained minors



Premium beverages and food (paid)



Service quality

2005 revenue = 77 million dollar 

STRATEGY PROPOSAL

PRODUCTIVITY STRATEGIES Market Penetration Go after Dell, Southwest, and US Airways market share 

Market Development Concentrate on major vacationers, cooperate company trips, tourists destinations with the help of package deals (hotels plus flights) ect. 

Joint Venture Join with already established flight services in the West and then gain more presence in the area. 

PROPOSED ANNUAL OBJECTIVES •

Continue rapid growth

 – 

Bidding on gates that become available at current hubs

 – 

Expand into new hubs



Increase revenues

 –  •  – 

25% per year  Increase efficiency

Cut expenses wherever possible while abiding by AirTran’s beliefs and values (culture of company)

 –  Maximize passengers per flight

OPERATIONS COSTS ANALYSIS

Great revenue

• Fuel is incrementing • Delta, Continental, U.S. airways, Northwest, & United declare bankrupcy • Some other stop operation

• Market Share

CONCLUSION Local Expansion •

Purchase more fuel efficient planes which will increase the number of NonStop flights



Increase the number of promotions, and packages to new markets.

International Expansion •

Purchase fuel efficient planes to travel international



Create contracts with international airports to allow Air Tran to land at their  airport. As a new venture, Air Tran should expand to South America, Caribbean, Europe, then further international destinations will be established after Air Tran is stable in the international market



Establish connections with international tourist destinations, and create promotional travel packages to introduce the new destinations that Air Tran will help promote the new services that Air Tran will be providing

CONCLUSION Advertising for Business’s •

Establish contracts with various businesses to optimize the use of Air  Tran for their various business related tasks such as business trips, shipping etc.



Set up a plan with business’s that would give them discounts on tickets if they have all their employees fly with Air Tran

The end 



DIFFERENTIATION How its different?

LOW COST

• • • •

Business class en every airplane Hube and spoke system Student travel program Free Kraft snacks

STRATEGY PROPOSAL

SERVICE QUALITY  Quality Comparison 2008 Vs. 2007 14

12

12

10

10

  e    l    t    i    T   s    i   x    A

8

6

6 4 2

2

3 1

3

2

0  Airtran

Delta

JetBlue

Southwest

Direct Competition

MARKET SHARE  American has the highest domestic market share (14.3%), followed by Southwest (13.0 percent),Delta (10.8 percent), JetBlue (4.3 percent), and AirTran (3.3 percent).

DESTINATIONS

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