Background
Since the announcement of the merger between US Airways and America West Airlines in September 2005, several systems issues have become apparent. The management team agrees that the largest issue currently facing the new US Airways is the ineffectiveness of the new vacation booking system available to online customers. Despite over 6 months of transition time, US Airways and America West Airlines continued to hold onto separate websites. Having separate websites wreaked havoc in the online booking world. It has been observed that the separate website addresses has aided to the customer confusion, both customer and employee frustration, and ultimately causing a significant decline in overall sales. Annual data collected from US Airways/America West Airlines shows a steady decline equaling 33% from 1st quarter 2005 to 1st quarter 2006.
Managerial Problem Statement
Is the decrease in sales directly related to the US Airways Vacations online booking tool?
Research Problem Statement
What are the main issues associated with the decrease of online vacation bookings through US Airways Vacations?
Secondary Research
The study of several other successful mergers provided some possible answers to the US Airways/America West Airlines apparent struggle. Sprint and Nextel, JP Morgan Chase Bank and Bank One as well as the Wrigley Company and Kraft Foods supplied numerous options to consider. Successful corporation mergers are not only contingent upon the increase in sales, but also customer service and employee satisfaction/retention. The marketing strategies will also play a vital role in the overall merger success.
Sprint and Nextel are both very well known names in ...