Subject category:
Strategy and General Management
Published by:
IBS Case Development Center
Length: 11 pages
Data source: Published sources
Topics:
AirTran; ValuJet; Low cost airlines in the US; Cost management at AirTran; Key success factors of low cost airlines; Employee management at AirTran; Advertising strategy of AirTran; Marketing strategies of AirTran; Multitasking at AirTran; Differentiation strategies of AirTran; Joe Leonard; Market share of major US airlines
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Abstract
AirTran, which was started in Orlando in 1994, started reeling under losses after the Atlanta based low cost airways ''ValuJet'', acquired it in 1997. In 1998, it incurred losses of $41 million and failed to compete with traditional carriers like Delta and US Airways. By January 1999, the airline had only $10 million that could keep it afloat for a few weeks. However, under new management, AirTran saw significant growth and was named as the ''best lowfare airline'' in 2004 by the Entrepreneur magazine. This case highlights the revival strategies of AirTran airways between 1999 and 2004 under the leadership of its CEO, Joe Leonard.
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Abstract
AirTran, which was started in Orlando in 1994, started reeling under losses after the Atlanta based low cost airways ''ValuJet'', acquired it in 1997. In 1998, it incurred losses of $41 million and failed to compete with traditional carriers like Delta and US Airways. By January 1999, the airline had only $10 million that could keep it afloat for a few weeks. However, under new management, AirTran saw significant growth and was named as the ''best lowfare airline'' in 2004 by the Entrepreneur magazine. This case highlights the revival strategies of AirTran airways between 1999 and 2004 under the leadership of its CEO, Joe Leonard.