Why Airline Mergers Don'T Fly

Essay specific features

 

Issue:

Business

 

Written by:

Irene P

 

Date added:

October 27, 2015

 

Level:

University

 

Grade:

A

 

No of pages / words:

2 / 509

 

Was viewed:

10198 times

 

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Essay content:

But in doing so, he plans to defy the conventional wisdom of airline mergers and create what some believe would be a dangerous model for the industry's long-term sustainability. There are two strategies management traditionally deploys in airline mergers-cutting overlapping flights to slash costs or expanding globally to increase revenue...
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Trimming routes was the approach touted by US Airways in its unsuccessful bid for Delta last year. At the time, US Airways suggested it could save nearly $1 billion by combining the two carriers and lopping 10% off the flight schedule. In a recent "internal memorandum," Anderson made it clear he was not cutting routes or hubs...
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