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American Airline US Airways Merging

Merging of the American Airlines with the US Airways Merging of the American Airlines with US Airways created the largest merge of its kind in the year 2013. The merge was in the tune of $17 billion (Karp 1). The newly formed airline company from this merge is hence the largest airline operating on earth. The newly established airline corporation is officially referred to as American Airlines as it chose to inherit the name from the former American Airlines. Why the Merge? The major point of focus, which these two companies are trying to do by merging, is to establish the largest airline network that would be very influential in the airline market. The newly established American Airline has the capacity of operating 6,700 daily flights and this makes it the most prominent and influential global airliner (Karp 1). Its operating presence in more than 50 countries worldwide adds to the network it intends to establish. The 6,700 daily flights make it presence prominent across all the 330 destination points it operates in worldwide. Another thing which American Airline is trying to do is to be the best. According to the newly established CEO, he said that it feels good to be the best and that is what the merge is trying to restore (Karp 1). American Airline is destined to be the airline of choice for all air travelers irrespective of whether they are on business trips or vacation holidays. However, using their wide established network, the new company is trying to target corporate clients, who travel often and account for a large portion of airline business. Before the merge, the former American Airline was struggling with bankruptcy and this was due to large costs involved. Thus, as the two former companies want to cut down oper... ... middle of paper ... ... everybody and me that companies merge to cut down costs and increase market share. However, it is very interesting and surprising on the direction which the American Airline decided to take. The focus on targeting corporate clients through widening their operation networks is something each manager or management student should take note of. The airline industry is very competitive and thus high cutting edge ideals are inevitably needed to survive the competition. This is what the new American Airline is exhibiting and I truly like the move. Consultation and analysis of previous similar cases is important in handling a large merge of the magnitude presented here. From the way the new management of American Airline is handling the case, it is evident that that they must have consulted extensively and studied previous mergers. This is a major case study for mergers.

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