Airtran Economic Environment

AirTran Airways Economic Environment

The United States airline industry as a whole has experienced financial survival issues over the last 3 to 4 decades. Once heavily regulated by the Government, there were many more airlines then there are today, but few flew the same routes from the same cities. Fares were not competitive and airline travel was not as convenient as it is today. In stages from 1979 through 1984, the airlines were deregulated giving way to competition and increased travel. This set off a frenzy of new and emerging airlines with added service to many parts of the country (Smith, 2008). AirTran Airways would be one of these new airlines. Breaking into the market with bare low fares, they would gain customer base leading to a profitable venture. Sadly, deregulation would unwillingly lead to reduction in service and safety and the 1994 crash of an AirTran Airways flight in Florida would make AirTran and the airline industry look at how the airlines do business. This crash, which killed 110 Passengers would prove costly for AirTran. The company went back to the drawing board to re-tool the company image. Over the past 20 years, AirTran has made changes in Management, advertising, technology, as well as entered a successful merger with Southwest Airlines. These moves have been key to survival.

Analysis

In order to evaluate if AirTran has followed the best course, examining alternative ways of survival are necessary. Passengers who have flown over the past 40 years, there is an obvious decline in service. In the 1980’s, air travel seemed luxurious with fancy meals and other perks that would draw you to a particular airline for your travel plans. Today air travel for the coach class flyer resembles more of a cattle call then a pleasurable trip. Based on airline complaints, lack of luxury or basic customer care seems to be an ongoing complaint. AirTran has focused