The Merger of Airtran by Southwest Airlines

THE MERGER OF AIRTRAN BY SOUTHWEST AIRLINES

09/14/2016

MAN MOHAN RATHORE

• AirTran reports an annual loss of $ 274 million for 2008 on January 2009.
• On 04/21/2010, Southwest chairman and CEO Gary Kelly talk to

 AirTran chairman and CEO Robert Fornaro to discuss about the merger. After meeting between the both Airlines CEO in Dallas suburb. Air Tran CEO Fernaro Agrees to consider any offer from Southwest Airlines. In September 2010, the boards of the both the airlines agrees to merger and they closed the merger on May, 2011. (dallasnews.com)

• After the merger Southwest Airlines became fourth largest American carrier and valued nearly USD 3 billion. The southwest Airline expends its winds start flying to New York, Washington D.C and world’s famous destinations like Aruba, Puerto Rico and the Bahamas.
• In the past AirTran is also the combination of many airlines like ValuJet and other small Airlines. At the time of merger AirTran had 138 aircraft in its fleet including 737-700’s and 717. Air Trans was famous for its low cost identity. Also, In the 1980, Southwest acquire two small airline Morris Air and Muse Air. The AirTran crew was always loyal, quite attitude and Timely and accommodating demeanor.
• Southwest Airlines built headquarter in Love field in Dallas, TX. The Airlines used the ticker symbol LUV to be customer loving Airline and Make sure customer satisfaction during the Flight time. There was a big challenge for Southwest Airline to grab thousands of AirTran employees in to Southwest Airlines. Southwest Airline cultivate the corporate culture and focused on selection of employees using the interview process and organizing creative activities. Employees integration was a difficult task. Also, They Trained new employees with training program and amusing challenges which was designed to socialize the new recruits. According to their website “A Warrior spirit, A Servant heart, A Fun-Loving attitude.” In November, 2011 Southwest Airline approved Seniority list of combined employees of the both Airlines.  
• Southwest Airlines wasn’t sure about the International operations until the closing because Southwest Airlines haven’t had any experience of International operations. After the Merger Southwest Airlines Open International routes to Bermuda, Mexico and five Caribbean destinations.

Analysis:  The Southwest Airlines was established in 1967 by Herb Kelleher and named as current name “Southwest Airlines” in 1971. After the net annual loss of AirTran in 2009 report. The CEO of the both the Airlines agreed to merger of the two Airlines. At the time of merger AirTran had 138 aircrafts including the 737’s,717 and 1700 pilots. They closed the merger deal on May, 2011. The AirTran size was 25% at the time of merger. The Southwest Airlines was remains on track to merge or add small Airlines into its system until 2015. Right now, Southwest Airlines is like a mothership.

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