American Airlines And Its Company Culture And Organizational Performance Essay

Macro: The first problem changing the culture at British Airways was the merger of the BOAC and BEA. In 1971, the Civil Aviation Act became law and the board was to control policy over British Airways but both BOAC and BEA remained autonomous, each with its own chairman, board, and chief executive. This caused a split within British Airways throughout the 1970s and in the mid-1980. The second problem BA faced was the threat of privatization. In 1984 the government passed legislation that made BA a public limited company. The third was productivity was bad compared to other leading foreign airlines. The fourth was poor service. Poor customer service

Organizational culture could almost be considered the roots of a company. The way a company’s employees think, the way the customers feel, and the company’s decisions are made are all based around the culture that the company has laid for itself. An employee’s values, thoughts, and actions should reflect those stated in the company’s mission. Southwest Airlines and American Airlines, while both attempting to create a culture that is comfortable and pleasing to their

Bombardier Transportation had one main problem which is that there isn’t any specific and defined organizational structure. This situation was particularly a problem with Bombardier Transportation trying to merge with Adtranz. Establishing the corporate culture is the first step that needed to be taken

In the past three years the airline industry has faced an unparalleled list of challenges and American Airlines has certainly had more than the others. Year by year AA has tried to recover with a great deal of effort to turn the company around. The strategies they are applying to counteract the status are : Lower costs to compete, give to the customers the service they are expecting

Globalization can be defined as “making worldwide in scope or application”(1). In this comparison of the global corporate culture of Northwest Airlines and American Airlines several areas will be addressed. The strength of the global culture with-in the companies. The fit of the company to the global marketplace, and the adaptive ness or the empowerment of the employees will be examined and compared. Perhaps more important, than whether they currently have a global atmosphere, is whether they can improve or create this atmosphere. A comparison between the two airlines will be made on their mission statements, information dissemination, global-mindedness,

“Your employees come first, and if you treat your employee’s right, guess what? Your customers come back, and that makes your shareholders happy. Start with employees and the rest follows from that” (Byrne, 2012). This quote from Herb Kelleher, co-founder of Southwest Airlines, embodies the leadership at the airline. Southwest is the leading low-cost airline based in Dallas, Texas and founded in 1967 by Herb Kelleher and Rollin King. They dare to differ from other carriers because their philosophy revolves around people both internal and external. Communication, culture, and leadership are the cornerstone of their success. This paper explores key leader’s communique tactics, the role communication plays in daily operations, how the mission, vision, and culture reinforce the goals, and the prominence of connecting with internal and external stakeholders. A clearer understanding the role of communication and culture at Southwest are beneficial in developing best practices for any organization.

Southwest Airlines represents a rather unique organizational force that has driven the company to success since its inception in 1971. One of the most unique features about the organizational structure is that it is largely decentralized and employees are openly welcomed to express their opinions on a wide range of organizational issues. However, despite the "hands off" management strategy, the company consistently ranks as one of the top airlines in regards to customer complaints; in 2008, for example, the company received 0.25 complaints on average for every one hundred thousand passengers who used the aviation services (Triangle Business Journal, 2009). This analysis will look at some of the organizational factors that have contributed to the success of Southwest Airlines over the course of the last few decades.

American Airlines (American) made four fundamental changes to its rates. First, it moved to a four-tier rate structure; American offered first-class rates and three tiers of coach: full-fare, 21-day advance purchase and 7-day advance purchase. Overall, it expected to reduce coach fares by 38% and first-class fares by 20% to 50%. Though full fare coach prices dropped by about 38%, advance-purchase fares dropped by 6% when compared to the advance purchase tickets already being offered. Through this fare structure, American also eliminated deep discount tickets. Second, American eliminated the negotiated discount contracts of many large

They faced the potential that by that following April they had losses close to £250 million in two years.

Organizations like the Southwest Airlines all have a culture, which demonstrates how the organization works and usually acts as its motivational tool. An organizational culture is important to the organization, as it is the major element in helping attain the organization's goals and objectives. Cultures in organizations are vast, with different organizations adopting their own type of culture. The examples of culture include; club cultures, where employees of the organization are assisted to fit into the culture. This is the most common type adopted by most organizations. There is also the academy culture, where the organization keeps its most skilled employees. The skills are developed by the company and an example of the organization that mostly uses this culture is the large corporations like the Southwest Airlines. The base team culture is designed to maintain high skilled employees, as these employees have great skills and can work for many other organizations. Other organizations have cultures that are highly discouraged, like the fortress culture, where employees hardly know their fate, and can be laid off any time. These organizations often undergo changes through reorganization, and only the specialized skilled people have chances for positions in the organization. Despite these many types of the cultures, management should ensure culture that is reputable, and

The British Airways case study was a very interesting case to read. It proves that not all people can be leaders, especially the chairman, board and chief executives of British European Airways (BEA) and British Overseas Airways Corporation (BOAC.) According to the case study of British Airways, the life at the “old” British Airways was “bloody awful” (Changing the Culture of British Airways, 1990, p. 1).

Quality, how does Boeing establish and maintain quality? Previously we discussed leadership development; in nearly the same process of development, Boeing's leaders take their acquired knowledge and skills and pass it on to their employees. Through this continual cycle of education allows Boeing to maintain a competitive advantage. Another of Boeing's core values is safety.

In April 1992, American Airlines launched "Value Pricing" -- a radical simplification of the complex pricing structure that had evolved over more than a decade following deregulation of the U.S. domestic airline industry. American expected that the new pricing structure would benefit consumers and restore profitability to both American and the industry as a whole. The critical issue raised is: Would American's bold initiative work?

Life at “old” British Airways lacked a unifying corporate culture. The 1971 merger of British European Airways (BEA) and British Overseas Airways Corporation (BOAC), by the British Airways Board, only succeeded in putting an umbrella over two separate mature entities. The focus of the BEA had been to build a European airline infrastructure. BOAS was an innovator and pioneered the first jet passenger service. Neither company was concerned with cost or profit. British Airways was government run and according to Jick & Peiperl (2011) “success had less to do with net income and more to do with ‘flying the British flag” (p.26). This inefficient government structure was bogged down with

When one guises at organizational culture, one should correspondingly look at the principles, beliefs, and the vision of the Company. Southwest Airlines’ CEO, Herb Kelleher, is a man whose approach of treating all individuals with dignity and admiration helped the Company gain a competitive advantage over major airlines. The responsive customer service, reliability,