Three high profile airline M&As: And the winner is…
Abstract
Purpose
This paper aims to analyse the success of the three main mergers that have taken place in the US airline industry since 2008. Delta and Northwest, then Continental and United and finally US Airways and American Airlines have all tied the corporate knot. This is the latest attempt of the industry to improve profits and to fight off low cost rivals. What then is the current assessment of the three new major airlines?
Design/methodology/approach
This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context.
Findings
The reforms that began through deregulation under President Carter in the late 1970’s have led to a series of major airline mergers over the past decade. This has certainly improved their profits in the short term and led to a more robust strategic position. None of this though should hide the fact that they have been operating with a major tail wind in the form of falling oil prices. As prices rise again, the airlines will face a sterner test.
Practical implications
The paper provides strategic insights and practical thinking that have influenced some of the world’s leading organizations.
Originality/value
The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.
Keywords
Citation
Thomas, M. and Vaillant, G. (2016), "Three high profile airline M&As: And the winner is…", Strategic Direction, Vol. 32 No. 6, pp. 33-36. https://doi.org/10.1108/SD-03-2016-0042
Publisher
:Emerald Group Publishing Limited
Copyright © 2016, Emerald Group Publishing Limited