The Merger of Airtran by Southwest Airlines: Will the Organizational Cultures Merge?

717 Words Nov 29th, 2015 3 Pages
1. Discuss the layers of culture that are evident in this case
Information systems development: AirTran uses Navitaire as reservations system vendor while Southwest uses Sabre to better accommodates international flights. Also, AirTran uses online travel agencies for ticket distribution while Southwest sells its tickets via telephone and its website.

Management and strategy: Southwest airlines have a different approach in managing and training its employees. Also Southwest culture focuses on employees and customers having a good time while flying. AirTran believes in lower- fare to attract customers and sells its tickets on various distribution agencies.

2.What are the similarities and dissimilarities between the cultures, values
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Decreased online reservation can be a problem: customers like me prefer to purchase ticket via travel agencies to have different options and better deals compare to going directly to an airline website to purchase ticket. Another problem will be how will a loyal customer that earned points/rewards on Expedia or Priceline use the points on Southwest website after the merger? This can be an issue because travel agencies websites offers rewards programs that let you earned points as a frequent flyer and the points can be used for future purchases. In addition, Southwest offers only one option of seating while tickets bought on third party websites have the options of choosing seat like first- class, business class and economy class. That can be an issue for major business travelers who prefer spacious seating, luxury and privacy. After the merging, managers should continue to use travel agency websites in order to boost sales and keep up with competition. Also, managers should to encourage customers to sign up for rewards offer by signing up for a credit card, as it’s a good marketing strategy. Managers should cut down cost by not having to customize AirTran flights and the options of first-class and economy seating should still be offered.

4. What would you recommend managers to do insure a smooth integration of the information systems, given the…