AirTran becomes Southwest

Topic: Business Brief #3

Author: Preston Locklear

Date: October 11, 2011

Southwest buys AirTran

Earlier this year, in May, AirTran became a wholly-owned subsidiary of Southwest Airlines. Initially, this created a lot of controversy, mainly among employees of both companies.

I interviewed a current employee of AirTran (now Southwest) to better gauged her opinion and see what she felt other employees thought about the business move.

Shena, who did not want to mention her last name, said she was excited about the business merge. However, she did express she was concerned that former AirTran employees would not receive preference in new business related decisions. She was glad about the increase of benefits with Southwest saying, “Southwest has a lot more monetary benefits…AirTran did not offer pay incentives like Southwest now offers”.

The public did not seem to have much of a vocal input in the merge however, according to RTT News; Southwest/AirTran sales have gone up 6.4% for the month of September. Although the public seems to be giving an overall positive response to the merge it still seems as though employees of former AirTran are worried about their job security as well as preference for business decisions.

Personally, I think this is a step in the right direction for both companies but I could not help but share concern with Shena and the possible inconvenience of not being as valued, simply because she was not an original Southwest employee.

Although this business move was several months ago it is riveting to see the success, other than employee relations, of the two companies. My suggestion to Southwest would be this, to increase employee loyalty and satisfaction, make aware to employees that their value is not more or less depending on the longevity of the employee or the original company worked for.

The merging of the two companies obviously opens more flight options and availability to travelers however employees and their satisfaction as well as job security are vital in the success of a company. Perhaps Southwest can strive to make as few changes as possible in order to keep employee relationships stronger than ever, in a time when such a thing is essential to the overall success of the company.

Sources:

http://www.rttnews.com/Content/TopStories.aspx?Id=1729785&SM=1

Interview with Shena, former AirTran employee and current Southwest employee

http://www.rttnews.com/Content/TopStories.aspx?Id=1729785&SM=1