American Airlines Case Analysis

Decent Essays

Market and Industry. The airline industry is highly seasonal, to gain a comprehensive understanding of an effective acquisition, we will need to analyze American Airline’s key performance indicators that contribute to the financial health of the company. Our research has determined American Airline to be a perfect fit for our acquisition strategy. We will briefly illustrate the reasons why American Airlines is an excellent prospect for acquisition. The airline industry is a large industry that not only employs many people, but also prides itself on being an industry that generates revenues that rivals that of any other large industry in the United States. The acquisition of American Airlines will give Delta higher visibility and new opportunities
To mitigate the issue surround low cost carriers Delta have created a valuable proposal that would differentiate it from its competitors. Airlines have encountered difficulty in nourishing and maintaining their financial viability, thus opportunities to reconstruct their business model has presented itself through alliances, merger and acquisition. Delta Airlines’ key competitors are United Continental Holdings, Inc., Southwest Airlines Co. and American Airlines Group, Inc. By acquiring American Airlines Delta will not only eliminate one competitor but also improve its market share. Delta will potentially realize more financial gains with the merger along with an increase market presence and the focus point for Delta would be

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