Our group has analyzed U.S. Airways for our case study. Included in the case study for U.S. Airways is the following: case description, vision and mission statement, industry analysis, and the company analysis. The industry analysis will focus on the market growth, substitution effects, driving forces, and the competitive markets utilizing an External Factor Evaluation Matrix. The company analysis will include an Internal Factor Evaluation Matrix and SWOT analysis. All summaries will be based on quantitative data and analytical appendices, which were found using various informational sources.
The case study shows whether U.S. Airways is capable of providing transportation to passengers, and delivering mail and cargo efficiently, effectively, and most of all cost efficiently. Also, a comparison on U.S. Airways and other leading airlines within the industry is analyzed to see whether U.S. Airways is able to be competitive and equitable enough to stay among the top airlines without going “belly-up”.
One of U.S. Airways programs is the Corporate Giving Program which contributes cash or in-kind transportation and volunteerism to 501(c)(3) nonprofit organizations. These organizations must serve to seek improvements in health and environment, education, arts and culture, and community and civic prosperity. Another program that U.S. Airlines established in 1999 was their Customer Commitment Programs. This program outlines their commitments to their customers. At the same time is also gives the company a set of goals and principles that will “guide the business, shape the policies, and influence their decisions that directly affect the customers.
Today, U.S. Airways is the sixth largest carrier in the United States and serves two-hundred and four locations within the U.S., Europe, Canada, the Caribbean, and Mexico. U.S. Airways, Inc. is the main operating branch of U.S. Airways Group. It operates almost 301 aircraft, 3,071 flights daily, and carries an average of more than 120,000 passengers. Group subsidiaries include Allegheny, Piedmont, and PSA and along with several independent partners they operate a regional feeder network known as U.S. Airways Express. In the past several years, however, U.S. Airways has been on a steady decline. Since the September 11 tragedy U.S. Airlines has been trying to regroup its company and at the same time compete with the other leading airlines in the industry.
It used to be that legacy airlines could command a premium. However, with the likes of Southwest, JetBlue, and other low cost airlines building a new paradigm, it is evident that in order for U.S. Airways to be successful, pricing, distribution, operations and scheduling must be built around what the customer wants. Passengers are no longer willing to pay for the Airline’s inefficiencies. They want safe, reliable and comfortable air service. But they now want it to be inexpensive, and the transparent pricing nature now in place makes this possible at the traditional airline’s expense. The analysis will show the effects of the tragedy and the results of the steps taken to reconstruct the company and the industry.
To provide affordable, safe, and friendly transportation and delivery services.
Existing Mission Statement
“US Airways Group will actively demonstrate its commitment to social responsibility by supporting worthwhile causes through volunteerism and in-kind transportation contributions that also promote the diversity of our employees, customers, and communities we serve.”
U.S. Airline’s mission statement consists of the following components:
1. Customers: US focused on serving their customers by focusing on the steps in their Customer Commitment Program.
2. Products or services: US offer a variety of promotional programs, and incentives. However, their main focus is to provide their customers with a safe, comfortable, transportation and delivery service in a timely manner, which is also cost efficient.
3. Philosophy: Their philosophy is based on the customer commitment program.
4. Self-Concept: US Airways is committed to their social responsibility.
5. Concern for the public: US Airways support worthwhile causes by volunteering and making contributions to other nonprofit organizations and to the community.
6. Concern for employees: US Airways believes in order to make the customer happy you must first make your employees happy.
The following industrial audit points illustrate the Company’s external opportunities and threats utilizing an External Factor Evaluation Matrix. Bear in mind while reviewing that the airline industry is mature, and is in the continual stage of consolidating.