On December 9th, 2013 the two airlines, US Airways and American Airlines merged to form the American Airline Group that turn out to be the major airline in the world. This merger was structured by the enlarged competition that airlines are countenancing in the business at present. The merger offered a prospect for both airlines to make use of the benefits of an extensive network that would effect subsequent to merging as countered to when each one operates separately. One of the foremost circumstances that encircled the merger was the imminent insolvency of American Airlines. The company in 2011 had filed for bankruptcy even though it relapsed to profitability the same year in July. The merger would enhance admission to opportunities of business for both airlines, particularly American Airlines that would decrease its coverage to financial risks, which were the preliminary grounds for the corporation filing for bankruptcy. The merger would generate enhanced synergies that would be apparent in the course of increased flexibility and financial strength in the market.
Each of the entities merged would have admission to further destinations and bigger clientele. Each of them would admission to a bigger destinations network i.e. 300 destinations all around the world. They as well had a code share contract where customers would impeccably book their flights from any US Airways or American Airlines networks. Such controls are an enhancement to each of the airline’s ability and results to bigger business and performance.
There are a variety of positive traits of this merger.… Read the rest