Trials, Tribulations,

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Trials, Tribulations, Search for
Recovery A Case Study on US Airways
Elizabeth Reeves Kim Davis Ray Tarnowski
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Organizational Breakdown
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Name Changes

• 1939 All American Aviation
• 1949 All American Airways
• 1979 US Air
• 1997 US Airways

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US Airways Express
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US Airways Shuttle
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Financial Indicator

Economy
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Stock Price
Date
Price

• August 28 0.68
• September 4 0.49
• October 23 0.57
• November 6 0.53
• November 26 0.55

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Major Competitors

• Delta Air Lines
• United Airlines
• American Airlines

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Low-Fare Competitors

• Southwest Airlines
• JetBlue Airways
• Air Tran Airlines

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Strengths

• Customer Benefits
• Name Recognition
• Superior Safety Record

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Weaknesses

• Bankruptcy
• Treatment of Employees
• Lack of a Crisis Plan

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Opportunities

• Name Recognition
• Loans totaling 575 million
• Terrorist Attacks

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Threats

• Terrorist Attacks

• War with Iraq

• al-Qaeda

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More Threats

• Layoffs
• Global Recession
• Lengthy Security Screening

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Recommendation
Objective To increase patronage 10, while
retaining currently existing patrons, for the
2003 fiscal year.
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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

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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

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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

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QUESTIONS