The  US  –  American  Merger  

Agenda    

Execu&ve  Summary  Company  Background    Situa&on  Analysis  

SWOT  Marke&ng  Strategy  

Vision      The  Plan  KPI’S    Budget  Controls  

Conclusion  References    

Execu5ve  Summary  

Building  from  the  merger  to  reposi&on  US  Airways  and  American  Airlines    

Background    • In  December,  2013,  AMR  Corp.,  merged  with  U.S.  Airways  Group.  

• Serves  more  than  330  des&na&ons.  • Primary  hubs.  • Customer  benefits  merger.      

Situa5on  Analysis  

 American  Airlines  lost  its  market  leadership  to  United  Airlines  in  2011.  

SWOT  

US AIRWAYS American Airlines

Strengths

On time performance Dominance in East Coast Good Customer Service US Airways Club – Affiliations 400 Airbuses

Weaknesses

Traditional Image Location and Size of Hubs Lack of Presence in the West Coast Excessive assets/Bankruptcy Fewer Entertainment Choices

Strengths

Flexible change/cancellation policy First class oversells economy AA Advantage program Top Tier Elite Program

Weaknesses

High Cancellations/Delays Lesser Hubs Rewards points/miles expire in 18 months High additional baggage fee Bad Customer service Fewer Entertainment Choices

Threats

Corporate Cultural Differences Customer Confusion

Brand Consistency

Fluctuating Oil Prices

Future Economic Instability Unpredictable Weather

Increasing Labor Costs

SWOT  

INTERNAL  

EXTERNAL  

US AIRWAYS American Airlines Strengths On time performance Dominance in East Coast Good Customer Service US Airways Club – Affiliations 400 Airbuses

Weaknesses Traditional Image Location and Size of Hubs Lack of Presence in the West Coast Excessive assets/Bankruptcy Bad Entertainment system

Strengths Flexible change/cancellation policy First class oversells economy AA Advantage program Top Tier Elite Program Dominance on Midwest & West coast

Weaknesses High Cancellations/Delays Lesser Hubs Rewards points/miles expire in 18 months High additional baggage fee Bad Customer service Bad entertainment System

OPPORTUNITIES  

Increased efficiency

Largest Airline in the world

Improved Customer Satisfaction

Shared Rewards Program – More Affiliates

Strategy  

 

Redefine  the  &red  US  Airways  and  American  Airlines  brands  to  create  a  unifying  brand  that  resonates  with  today’s  flyer.  

Who  is  Today’s  Flyer?  

 

 

Today’s  Flyer  is…                                            

                                   The  NEW  AMERICAN  

 Introducing  America’s  largest  Airline…  

NEW  AMERICAN  

INSIGHT  

We  are  all  different.    

BRAND  IDEA  

Personalized  experiences  that  bring  the  des&na&on  to  YOU.  

To  promote  Equality,  Diversity,  Youth  and  Culture,  ALWAYS.  

 Vision  

The  PLAN  

             High  Cost  

     Quality  

   Low  Cost  

       Service  

 Compe55ve  Analysis  

             High  Cost  

     Quality  

   Low  Cost  

       Service  

                                                                                             Compe55ve  Analysis  

                                                                                     OBJECTIVE          

 Reclaim  posi&on  as  market  leader  within  24  months.      

Our  Target  Audience  …  

•  Domes&c  Leisure  travel  volume:            17%  are  35-­‐44,  20%  are  25-­‐34,    •  Target:  37%  are  25-­‐44  (reasoning:  62%  spending  on  Leisure  travel)  

Leisure  travel    

TACTICS  

PERSONALIZATION  

•  Customize  In-­‐Flight  Experience  to  des&na&on:    

•  Food  :  Chicago-­‐Deep  dish  pizza  •  Music  :  Hawaii-­‐Ukulele  •  Inflight  :  NYC-­‐  Fashionable  ougits    •  Interior  :  Vegas-­‐Poker  pillow  case  

 

                                                 

New  American  App  

PERSONALIZATION  

N  A  

   

Pick  your  movie  &  dinner  ahead  of  5me  

PERSONALIZATION  

                                                 Beat  mini  bar  fees  

PERSONALIZATION  

 Keep  loved  ones  informed  

PERSONALIZATION  

     Don’t  let  NYC  cabbies  APRIL  Fool  your  fare  

PERSONALIZATION  

LOYALTY  PROGRAM  Rack  New  American  points    

Partnership  –  American  Express  

Get  the  best  swag  with  American  Express  

Partnership  -­‐  Hotel  Affilia5ons  

Partnership  -­‐  Uber  

Personalize  your  ride...    

You  fancy  huh...    

Keepin  it  real  Green…  

Take  control  of  the  wheel…  

Partnership  -­‐  Enterprise  

Customize  your  taste  buds      

Partnership  -­‐  OpenTable  

Content  Marke5ng  

Tell  your  story…  •  Summer  Selfie  Contest  

#NewAmericanSummerSelfie    

ENTERTAINMENT  Access  your  favorite  movie,  shows…    

Stream  your  favorite  tracks…    

ENTERTAINMENT  

CAUSE  MARKETING  

 •  Sponsor  a  dream  to  become  a  pilot  •  Provide  aid  to  children  in  need  

THEY  ARE  THE  NEW  AMERICA  

KPI’s  

50%  

20%  

30%  

BUDGET  50%  

Rebranding  

30%      Analy&cs  Purchase    App  Development      Entertainment  Unit    Contact  Modeling    Promo&onal  Costs  

 

20%    Bring  the  Des&na&on  to  you  

1.  Plane  interior  2.  Food  Cura&on    3.  Staff  training  

 

CONTROLS  

Analyze  data  collected  on  a  regular  basis  from  key  performance  metrics  to  avoid  failures  of  key  ini&a&ves  

CONCLUSION    

 hip://academy.aerosim.com/Portals/1/PDF/2013%20Pricing%20Guide.pdf  hip://phx.corporate-­‐ir.net/phoenix.zhtml?c=117098&p=irol-­‐reportsannual  

REFERENCES  

Thank  you