Restructuring / Turnaround Strategies Case Study

AirTran Airways: The Turnaround

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.

Pedagogical Objectives:

• To discuss the revival strategies of AirTran airways between 1999 and 2004 under the leadership of its CEO, Joe Leonard.

Keywords : AirTran; ValuJet; Low cost airlines in the US; Restructuring / Turnaround Strategies Case Study; 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