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The purpose of this paper is to assess the efficiency determinants of mergers and acquisitions (M&A) in the context of Latin American airlines based on business-related variables commonly found in the literature. The idea is to identify preferable potential airline matches in light of fleet mix, ownership structure and geographical proximity.

In order to achieve the objective, all possible combinations of M&A pairs are considered in the analysis, which is developed in a two-stage approach. First, the M&A Data Envelopment Analysis model efficiency and returns-to-scale estimates are computed. Then, robust regression and multinomial logistic regression are respectively used to discriminate these estimates in terms of such business-related variables.

The results reveal that these different contextual variables significantly impact virtual efficiency and returns-to-scale levels. Private ownership, passenger focus and a better match between aircraft size and demand for flights appear to be key drivers for merged airline efficiency.

The study makes theoretical contributions, though limited to analyzing Latin American airlines only. The use of bootstrapped robust/multinominal logistic regression, compared to the methods adopted by previous literature studies, generates more accurate and robust results related to the efficiency drivers due to its special feature and ability to allow the discrimination of increasing, decreasing, and constant returns to scale in light of a given set of contextual variables.

This study examines the pure effect of the merging activity on efficiency gains. Not only private ownership but also a hybrid public–private ownership has a positive influence on virtual efficiency, suggesting an important governmental role in promoting M&A in the airline industry.

The authors present an original take on the issue of airline mergers by exploring what are the major drivers possibly involved in efficiency gains of potentially merged (virtual) airlines. The authors identify preferable potential airline matches where efficiency gains would be positive in light of business-related variables such as fleet mix, ownership structure and geographical proximity. The analysis also includes an assessment of the impact of contextual variables such as cargo type, ownership structure and geographical proximity in relation to the strategic fit of mergers considering the resulting efficiency and returns-to-scale scores of virtually merged airlines. To the authors’ knowledge, no previous research has addressed these issues in Latin American airlines. Further research directions for this industry are also discussed.

The purpose of the current study was first to identify the motives for mergers, and second to examine the effect of mergers on the systematic risk of bidder firms in the airline industry.

To evaluate the effect of mergers in the systematic risk, two different market models are estimated for each company in the sample, one with pre‐merger data and one with post‐merger data. Then the results obtained from the two data sets are compared so as to identify possible differences.

The study has identified three diving motives behind the merges, namely cost efficiency, economies of scale, and market power. All of these motives are expected to affect the new firm's earnings stream and in turn affect its systematic risk. With the use of the market model the individual merger results are mixed and in line with the relevant literature. Nonetheless, the average results showed a decrease in the post‐merger systematic risk.

A reduced post‐merger systematic risk indicates a success in achieving management objectives. Mergers can generate synergetic gains from increasing cost efficiencies and/or scale economies and can also increase shareholders value through the reduction in the new firm's cost of capital. However, to have a more valid perspective a larger number of mergers should be included in the sample together with alternative calculation of systematic risk to test the robustness of the results.

Taking into account the current economic hardship this paper addresses the issue of shareholders wealth maximization through mergers.

This article highlights the essential factors to be considered for successful mergers and acquisitions (M & As) in the aviation industry. The article draws insights from the successful deals between Morris and Southwest Airlines as well as Cathay Pacific and Dragonair.

The article is a case study of two successful mergers in the airline industry, one in the USA and one in Asia.

M & As in the airline industry are loaded with difficulties. These include problems of brand identification, opposition from key stakeholders and the need of forming one coherent organisational culture. However, this does not mean that they are impossible. Two large-scale mergers have shown that successful mergers can occur in the industry.

This article gives examples of two successful M & A deals from the aviation industry and shows the important factors to achieve this.

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?

This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context.

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.

The paper provides strategic insights and practical thinking that have influenced some of the world’s leading organizations.

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.

In this paper, the authors draw from the concept of a “focused factory” to examine whether a focused strategy provides superior performance over a non-focused strategy in firms experiencing service disruptions.

The authors test their hypotheses using panel data of the US domestic airline industry from 1998 to 2019.

Overall, the study findings show that a focused strategy provides superior financial performance over a non-focused strategy in both stable environments and unpredictable environments. The authors also find that the effect of service disruptions on profitability is less pronounced for firms following a focused strategy. This shows that focused firms need to grow over time to sustain profitability. Their post hoc analysis shows that for a non-focused strategy (but not for a focused strategy), firm size moderates the effect of service disruptions on profitability. This suggests that a firm pursuing a non-focused strategy can mitigate the negative effect of service disruptions by increasing its size.

This is the first study that examines the effectiveness of the focused strategy in mitigating service disruptions. The results provide further support for the effectiveness of the focused strategy in responding to service disruptions in service organizations.

This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting‐edge research and case studies.

This paper is prepared by an independent writer who adds their own impartial comments and places the articles in context.

In the Spring of 2012 Facebook agreed to buy a small Silicon Valley startup that had a neat smartphone app that allowed people to take retro‐looking photos and share them. The startup had 13 full time employees and had started life less than two years previously. The price paid by Facebook was a cool $1bn. But perhaps the most significant development was not the price or strategic intent, but the speed of interested parties to offer anti‐Facebook consumers alternatives to its new purchase.

The paper provides strategic insights and practical thinking that have influenced some of the world's leading organizations.

The paper 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.

The purpose of this paper is to offer an explanatory process model of stakeholder management. The model shows how and why path dependence is manifested in stakeholder management issues.

The paper integrates stakeholder theory with key ideas from path dependence literature. The resulting propositions are examined in the context of a longitudinal case study of the United Airlines and US Airways abandoned merger in 2000‐2001

The paper's analysis demonstrates that initial conditions are accentuated by the sequence of actions, offering a plausible explanation for process outcomes.

On the practical side, the paper provides a problem‐solving tool for stakeholder management to analyze the stakeholder linkages during strategic initiatives.

The paper addresses an important research gap, exploring how stakeholder‐related path dependencies influence the process of conflict escalation.

In 2017, Qatar Airways was recognized as the world's number-one airline by SKYTRAX World Airline Awards. These international awards have been described as “the Oscars of the aviation industry,” reflecting global recognition and excellence in conducting business activities at the international level. The main purpose of this case-based research is to explore and evaluate the internationalization strategies employed by Qatar Airways in becoming known as one of the best airlines in the world.

In accordance with the nature of this study, data were collected by interviewing managers from Qatar Airways as well as by exploiting supporting materials from secondary sources and airline-specific records. The recorded interviews were analyzed via content analysis to define airline strategies aimed at expanding globally and building a global brand.

The findings reveal that Qatar Airways has adopted effective strategies that have facilitated its aggressive global expansion and enhanced its global consumer recognition – mainly as a fast-growing network connecting important destinations that maintains a focused consumer orientation dedicated to providing an optimal travel experience. These strategies have been focused on building a superior consumer experience marked by exceptional comfort.

Qatar Airways' implementation of internationalization strategies in the airline industry represents an innovative approach marked by efficient operations and high-quality standards. Both international business managers and academics can learn from these strategies and their implications for enhancing airlines' global reputation and overall quality performance.

Unlike other research studies that investigate a wide range of firms across industries, this study focuses on exploring the factors that support the successful internationalization of a single firm, thus providing in-depth understanding of specific strategies to achieve global recognition. This study provides unique insights to analyze strategies and assess their practical relevance.

The purpose of this paper is to analyse a key research hypothesis: Do firms ruled by managers have a greater rationale to implement a mergers and acquisitions (M&A) than (family) firms managed by their owners?

This paper uses an organizational-delegation-quantity oligopoly game to examine the profitability of M&As for firms that strategically delegate production decisions to managers versus family firms with no strategic delegation. This paper delimits the condition for delegation as aimed at increasing merger profitability: non-family CEOs will implement mergers more frequently than family CEOs and more so for inefficient firms because these require fewer synergies. The paper tests the main propositions with data on all M&As by small and medium firms in Spain in 2017 and 2018.

The greater the average operating margin of a firm, the more likely a merger, which is also more likely between non-family firms. The evidence of higher ex post synergies by firms is not statistically significant due to large variability, suggesting that some family firms did not obtain the expected ex ante synergies. The lesson is that family firms competing in an environment of high marginal costs (e.g. industries in the early stage of the life cycle) seeking to grow through inorganic means such as M&As have an incentive to professionalize management.

This paper models competition in a Cournot fashion, representative of industries where firms compete in terms of sales growth and increased market share. Other results might hold in industries where firms are oriented to price competition or to service differentiation. The empirical research uses proxies for key variables such as the form of firm governance and unit costs, while hypotheses on ex ante synergies driving merger decisions had to be tested through ex post synergies.

M&As by small firms and family firms remain largely unexplored in the literature. This paper contributes with both a theoretical model and empirical research that highlight the implications of strategic delegation contracts for M&A deals.

Mergers and acquisitions (M & As) are sensitive issues in most industries, but it would seem even more so in airlines. The list of failures or destroyed value in the sector is long. This article outlines three of the main reason why M & As can be a challenge in this industry.

The article looks at M & As in the airline industry through a key stakeholder and brand identification perspective. It also considers the reaction of airline personnel to merger and analysis the cause of their behaviour.

Senior management often fails to understand that there is a big difference between negotiating and closing a merger and afterwards making it a success. While they often feel rather exhausted after the long process of discussions, due diligence and many legal aspects including regulatory hurdles – after the announcement the true work starts!