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Evaluation of the Pending Merger of American Airlines and US Airways - Research Paper Example

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Marketing
Pages 4 (1004 words)

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Evaluation of the Pending Merger of American Airlines and US Airways Name: Institution: Evaluation of the Pending Merger of American Airlines and US Airways Introduction Recently, mergers of airlines have been on the rise across the globe with a n umber of airlines coming together…

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Evaluation of the Pending Merger of American Airlines and US Airways

The Pending Merger of American Airlines and US Airways U.S. Airways and American Airlines are set to merge so as to form the largest airline across the entire globe. There is a proposal to settle the matter with Justice Department over an antitrust lawsuit on their merger which is projected to cost US$17 billion (Johanson, 2013). Assent of the plan to merge the two airlines is seen as a potential for resolving competition issues while at the same time contribute to creation of the largest global airline. An in-depth evaluation of the planned merger indicates that there are certain things which are pertinent in case a settlement of the matter happens. One of the prospected outcomes from the pending merger of the two airlines is that more slots for airports will be experienced for cheaper carriers in the American airline market. The two airlines will have to separate slots and facilities relative to airline costs to realize improved competitive advantage in airline industry (Feldman, 2013). This implies that the merger will lead to co-ordination that will see it control at least 80 per cent of American commercial market in airline business network. The merger of the two US airlines will also gain slots for cheaper carriers across the US. ...
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