America West Airlines: An Airline in Transition
America West Airlines has had a tumultuous history: Chapter 11 in 1991, record FAA fines for maintenance violations, poor employee morale, and even poorer customer relations. Douglas Parker, who became the CEO on September 1, 2001, has presided over an amazing transition in operations and performance during one of the worst times in airline history. The case examines the strategy and "out-of-the-box" thinking that has led to the airline's transformation.
This case demonstrates:
- How internal company policies and practices, as well as external macro events, affect a company's relationship with its customers;
- How decisive corporate leadership and actions-guided by strategy-can help the company to regain business and customer loyalty; and
- How management and customer perceptions can differ, and how difficult it is to change customer perceptions even with operational improvements.