San Sebastian College-Recoletos Manila

Strategic Management for Tourism Industry

Nillasca, Bernadeth L. Mr. Gerald Peter Galvez

I. Title

AirTan Airways, Inc. - 2009

II. Rationale

AirTran Airways was formerly known as ValuJet Airlines based in Orlando, Florida, which began
operations in 1992. AirTran airlines has a lot of achievements such as it became the first airline to
offer Wi-Fi on all flights, ranked in the top three for the last five years and had been recognized for
the most recently the good service quality ratings. After a name change, a new management team,
under the leadership of Joe Leonard, formerly of Eastern Air Lines, implemented improved
efficiencies, built a sustainable route network, factors which contributed to a greater presence at its
Atlanta hub. However, the airline industry faced a lot of difficulties such as loss of forecast in 2009,
industry debt, passenger unit revenue down, and the worst problem that happened back in 1996
was the plane crash of flight 592 killing a hundred of passengers.

III. Statement of the Problem

How will AirTran Airways do to increase its profit and maintain to be the low-cost fare airline?

IV. Objective/s

To increase 10% of the revenue by the end of 2025 providing safety, very enjoyable and convenient low-
cost travel experience to everyone.

V. SWOT analysis

Strength Weaknesses

1. High Service Quality
2. Strong brand name
3. Lowest cost of airline fare
4. First airline to offer Wi-fi
5. Ranked top three for five years
6. Classified as “major airline” because of its $1
Billion annual revenue
1. Had lost $55 Million since the crash of flight 592
2. Only available mainly in the eastern United
States
3. Poor safety operation that led to plane crash way
back in 1996
4. Grounded for four months by the Federal
Aviation Administration
 Opportunities Threats

1. Acquiring more flight destinations would mean an
increase on its revenue
2. Expansion to more services that the airline may
provide
3. More destination to be flown
1.  Global economic downturn negatively affects
leisure, optional travel, as well as business travel.
2. Increase of the price of fuel
3. Other airline carrier such as United Airline, Air
Canada etc.

VI. Manager’s Plan

The plan will be focus on changes in safety procedures, operations, customer service, handling
reservations and product enhancements to be able to provide the best quality services to our
consumers so that they remain patronizing our airline company.

VII. Plan of action

1. Continue airworthiness and other activities related to continued operational safety

2. Provide new business class service
3. Developing computerized seat assignments for all of the customers
4. Focus more on the services such as delay of flights and flights cancelation
5. Providing and enhancing product and services such as offering discounts
6. Enhancement of aviation security in order to avoid of crash or inflight problems.
7. Hiring of employees that is highly trained to provide the satisfaction of the passengers
8. Developing partnerships with other low-cost carriers to diversify operations

VIII. Result assumption and it’s result to business

 The AirTran Airline will remain as the lowest cost airline fare and is following the trend in the
industry.
 AirTran will be the highest quality of Customer Service delivered with a sense of friendliness,
warmth, self-pride, and Company Spirit. The airline through its various strategies has managed
to achieve its objectives.
 AirTran has made Southwest the largest domestic airline, based on the number of passengers
flown.
 With the passenger is the utmost priority and giving good services, the airline will be exploring
high-quality growth opportunities, maintain low-cost leaders, and sustained revenue.