BUILD BRIGHT UNIVERSITY Siem Reap, Cambodia MBA PROGRAM Strategic Management U.S Airway Group, INC Group Exercise Lecturer by: Mr. Rom Ra BBA, MBA, Group member: Mr. Phich Sokda 092 991 005 Ms. Pen Kesornicole 012 595 921 Ms. Ny Sandayvy 012 800 311 Mr. Lim Seanghout 012 505 853 Mr. Koet Vitiea 097 9557 357 Mr. Khoun Sokhemra 016 633 999 Mr. Heang Mengho 077 652 111 TABLE OF CONTENTS Page I. Introduction 1.1 Firm Background ....................................................................................................... 1 1.2 Vision/Mission/Goal/Objective …………………………………………………………………………………… 12 1.3 Headquarter Office/Geographical Operation ……………………………………………………………….. 13 1.4 Firm Structure …………………………………………………………………………………………………………. 15 II External environment ( Opportunities & Threats ) (Socio-culture, economics, political, legal, and technological) ………………………………………. 16 III Internal environment (Strengths &Weakness) 4.1 Management (BOD and top management) …………………………………………………………………. 23 4.2 Marketing ………………………………………………………………………………………………………………. 28 4.3 Operation/Production …………………………………………………………………………………………….. 28 4.4 Finance …………………………………………………………………………………………………………………. 29 IV Critical success Factors/Firm strategies V Conclusion & Recommendation I. Introduction US Airways, along with US Airways Shuttle and US Airways Express, operates more than 3,000 flights per day and serves more than 200 communities in the U.S., Canada, Mexico, Europe, the Middle East, the Caribbean, Central and South America. The airline employs more than 32,000 aviation professionals worldwide and is a member of the Star Alliance network, which offers its customers more than 21,000 daily flights to 1,290 airports in 189 countries. Together with its US Airways Express partners, the airline serves approximately 80 million passengers each year and operates hubs in Charlotte, N.C., Philadelphia and Phoenix, and a focus city in Washington, D.C. at Ronald Reagan Washington National Airport. US Airways was the only airline included as one of the 50 best companies to work for in the U.S. by LATINA Style magazine’s 50 Report for 2010 and 2011. For six years in a row, the airline also earned a 100 percent rating on the Human Rights Campaign Corporate Equality index. The Corporate Equality index is a leading indicator of companies’ attitudes and policies toward lesbian, gay, bisexual and transgender employees and customers. US Airways also ranked #1 among its competing hub-and-spoke network carriers for 2010 performance as rated by the Wichita State University/Purdue University Airline Quality Rating (AQR). For more company information follow US on Twitter @USAirways or at Facebook.com/USAirways. 1.1 Firm Background 1939 All American Aviation brings the first airmail service to many small western Pennsylvania and Ohio Valley communities with introduction of a unique 'flying post office service. 1948 Piedmont Airlines begins operations. 1949 All American Aviation becomes All American Airways and makes the transition from airmail to passenger service with introduction of the DC-3 and an expansion of its service. Pacific Southwest Airlines begins operations with service in California. 1953 All American's route system grows and the name is changed to Allegheny Airlines, recognizing the mountains and river of the same name that lie in the heart of the airline's network. 1965 Allegheny Airlines begins the transition to turbine-powered aircraft with introduction of the first Convair 580, its workhorse for the next several years. Page ‐ 1 ‐ 1966 The first jet, a DC9-10, makes its debut in Allegheny colors. It is replaced the following year by the first of what would eventually become a fleet of 62 larger DC9-30 jets. 1967 The first Allegheny Commuter service begins, between Hagerstown, MD and Baltimore/Washington International Airport by Henson Aviation, forerunner of today's Piedmont Airlines. It was the beginning of today's network of 10 regional airlines that provide US Airways Express service to 172 cities throughout the nation. 1968 Allegheny merges with Indianapolis-based Lake Central Airlines, expanding the growing route network beyond Pittsburgh to the Midwest including Dayton, Columbus and Cincinnati, OH; Indianapolis, IN; and St. Louis, MO. 1972 Allegheny acquires Mohawk Airlines, a Utica, NY airline with service to most cities throughout New York and New England. With the merger, Allegheny acquired Mohawk's BAC-1-11 jets to complement its DC9s and becomes the sixth largest airline in the world as measured by passenger boardings. 1978 Deregulation comes to the U.S. airline industry. Airlines have new freedom to expand their route systems and more flexibility to develop new and innovative pricing structures, but lose the protection of the fare- and route-setting authorities exercised by the Civil Aeronautics Board, which closes down by 1984. 1979 Allegheny changes its name to USAir to reflect its expanding network, including post- deregulation entry into Arizona, Texas, Colorado, Florida and later, California. 1983 America West Airlines begins operations in Phoenix on August 1 with 230 employees and three 737s, serving Colorado Springs, CO; Kansas City, KS; Los Angeles, CA; and Wichita, KS. The airline’s schedule calls for 20 daily departures. 1984 USAir introduces its Frequent Traveler program, which provides travel benefits to USAir's most loyal customers. 1986 Piedmont acquires Empire Airlines and its Syracuse, NY hub. Page ‐ 2 ‐ 1987 Large-scale airline consolidation, a partial product of deregulation, continues. Piedmont introduces European routes in its system. Competition for the lucrative California market intensifies as local carriers are bought and merged into larger partners. Pacific Southwest Airlines of San Diego becomes a wholly-owned subsidiary of USAir Group in May. Piedmont Airlines, the dominant carrier throughout the mid-Atlantic region of the United States, also becomes a subsidiary of USAir Group in November 1987. 1988 PSA is merged into USAir. 1989 Piedmont is integrated into USAir, the largest merger in airline history. The merger brings with it Piedmont's international routes as well as its Charlotte, Baltimore, Dayton and Syracuse hubs. Baltimore and Charlotte remain hubs. The merger also brings USAir's first wide body jets, the Boeing 767-200ERs now used on its transatlantic and some transcontinental routes. 1990 USAir expands its international flying with service between Pittsburgh and Frankfurt, Germany, complementing existing Charlotte-London service begun in 1987 by Piedmont; and in 1991, international expansion continues with the introduction of new nonstops between Charlotte and Frankfurt. 1992 Philadelphia-Paris is added to USAir's transatlantic schedules in January. Daily nonstops between both Philadelphia and Baltimore/Washington International Airport and London Gatwick Airport are introduced in May. USAir and Trump Shuttle begin a marketing affiliation under which the service becomes the USAir Shuttle. The Shuttle provides hourly service between New York and Boston and between New York and Washington, DC. USAir's new terminal at New York LaGuardia opens, as does the new Midfield Terminal at Pittsburgh International Airport. 1993 USAir and British Airways announce an investment/alliance plan, under which USAir gives up its London route authority. 1994 USAir makes its largest expansion ever of its 10-year-old Frequent Traveler Program by becoming the exclusive U.S. domestic airline partner of LatinPass, which has 14 Latin American airlines sharing program benefits. 1995 USAir posts its first profitable year since 1988, with earnings of $119.3 million on sales of $7.474 billion. USAir introduces Priority TravelWorksSM, allowing bookings from personal computers. Page ‐ 3 ‐ 1996 Stephen M. Wolf is elected chairman effective January 22. Seth E. Schofield retires as chairman after 38 years' service to the company and three and a half years and chief executive. USAir continues its transatlantic expansion, winning the right to serve Munich, Rome and Madrid from Philadelphia beginning in 1996. USAir introduces ticketless travel. USAir, in a dramatic two-week period, announces what might in time be the largest single order for airliners; then announces a new name, image, identity designed to carry the airline aggressively into the next century. The airline ordered up to 400 new Airbus A319, A320 and A321 narrowbody twin jets for delivery starting in 1998 and continuing through 2009; then within days announced its new identity as US Airways. The airline challenged its relationship with British Airways in court, seeking rights to London Heathrow from four U.S. gateways and to require British Airways to dispose of its USAir stock. USAir notifies BA the codeshare between the two will end in March, 1997, and in December, British Airways announces it will sell its shares in USAir and that its three directors will resign. 1997 The name US Airways is put into use officially on February 27. Signs, stationery, ticket stock, business cards, advertisements, marketing materials, ticket folders and counters all start to sport the new US Airways blue, red, gray and white identity, and the first aircraft are painted in the new scheme as the changeover approaches. The US-BA codeshare expires in March. 1998 US Airways Inc., purchased Shuttle Inc., from a consortium of banks. The Shuttle has flown under the US Airways name since 1992, when US Airways became an investor in the Shuttle with a minority ownership stake. US Airways Shuttle flies 17 daily roundtrips