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Trials, Tribulations, & Search for Recovery: A Case Study on US Airways. Elizabeth Reeves Kim Davis Ray Tarnowski. Organizational Breakdown. Name Changes. 1939 – All American Aviation 1949 – All American Airways 1979 – US Air 1997 – US Airways. US Airways Express.
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Trials, Tribulations, & Search for Recovery: A Case Study on US Airways Elizabeth Reeves Kim Davis Ray Tarnowski
Name Changes • 1939 – All American Aviation • 1949 – All American Airways • 1979 – US Air • 1997 – US Airways
Financial Indicator$ = Economy
Stock Price Date Price • August 28 $0.68 • September 4 $0.49 • October 23 $0.57 • November 6 $0.53 • November 26 $0.55
Major Competitors • Delta Air Lines • United Airlines • American Airlines
Low-Fare Competitors • Southwest Airlines • JetBlue Airways • Air Tran Airlines
Strengths • Customer Benefits • Name Recognition • Superior Safety Record
Weaknesses • Bankruptcy • Treatment of Employees • Lack of a Crisis Plan
Opportunities • Name Recognition • Loans totaling $575 million • Terrorist Attacks
Threats • Terrorist Attacks • War with Iraq • al-Qaeda
More Threats • Layoffs • Global Recession • Lengthy Security Screening
Recommendation Objective: To increase patronage 10%, while retaining currently existing patrons, for the 2003 fiscal year.
Strategy A: Create a positive public perception of US Airways • Tactics: • Promotion • Make CEO available for interviews • Make all info on US Airways available (emphasize the positive) • Dividend Mile Charity Program
Strategy B: Increase employee satisfaction, thus increasing productivity and profit. • Tactics: • Opportunities for extra sick days and vacation time • Alert employees to recent positive developments • Reassess lost benefits; establish more secure working environment
Strategy C: Increase customer satisfaction of flying experience. • Tactics: • More available web fares • More electronic ticketing machines • More ways to earn dividend miles • 6 more inches of legroom for taller patrons