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

US Airways Shuttle

Economy = Financial Indicator$

$ August 28$0.68 $ September 4$0.49 $ October 23 $0.57 $ November 6$0.53 $ November 26$0.55 DatePrice Stock Price

Delta Air Lines United Airlines American Airlines Major Competitors

Southwest Airlines JetBlue Airways Air Tran Airlines Low-Fare Competitors

Strengths Customer Benefits Name Recognition Superior Safety Record

Bankruptcy Treatment of Employees Lack of a Crisis Plan Weaknesses

Name Recognition Loans totaling $575 million Terrorist Attacks Opportunities

Threats Terrorist Attacks War with Iraq al-Qaeda

Layoffs Global Recession Lengthy Security Screening More Threats

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

QUESTIONS