What Merger Is The Merger For The Company Of The Southwest Airlines Acquiring The Airtran Airways Essay

Given the fierce competition in the airlines industry and the additional competition being offered by the new ultra-low cost carriers, it has become imperative for Southwest Airlines to find a solution that will be sustainable and insulate them verses these and any other future threats. Southwest has initiated a merger proposal with JetBlue that will result in the newly formed SouthwestBlue being much larger and able to compete for control of the North American Continent as the number one provider for customers concerned with both low-cost and excellent customer service. Because both Southwest and JetBlue have similar core values, customer service policies, and business models, it will be an easier merger than it would be for two carriers with drastically different layouts.

Generate a list of the ways in which you believe your responsibilities and the tasks you perform are likely to change because of the merger and your resulting new role. Hint: It may be helpful to make lists of what you imagine to be the circumstances before and after your appointment. For example, two obvious points of comparison involve number of employees (which implies many necessary tasks) and travel inherent in the job. See how long a list you are able to generate.

2. When an acquisition takes place, there is usually a lot of concern on behalf of all the company’s employees.  Not only the company that is being acquired also by the company that is doing the acquisition.  Usually there will be jobs lost, consolidation of positions, promotions, demotions, etc. It is the responsibility of the Human Resources Department to ensure

The three major challenges that arose after the merger were the following: firstly, the companies needed to integrate their flight information systems. Secondly, they needed to integrate their passenger information systems. Finally, there was a need to reconcile both airlines speedup-slowdown algorithms.

Merging with another organization has downfalls of destroying wealth from the merger. Considering the buying price is important when merging, spending too much on the merger will impound the value after the merger. Some mergers do not create wealth so capital is lost through the merger. There is no guarantee of financial gain and every formula considered with focus, just as with an acquisition. The final decision dictated by the variables. One company merging with another company takes the debt and losses of those companies in the new formed company.

While it is difficult, to some extent, to evaluate the success of a merger that is only just now entering its final implementation phases, it is known that the objective of that merger was to use the larger route network to attract more business, and that the combined airline would also extract cost savings as the result of increased operational efficiency. The airline had struggled in 2009, with its sales declining, but it recovered in 2010 and 2011. Sales last year were $33.678 billion, up from $21.068 billion the year before. In the past two years, the company has turned a profit, going from $253 million in net income in FY2010 to $840 million in net income in FY2011. Some of this improvement may stem from the impact of the merger. However, the airline industry is highly cyclical, and the past two years have represented economic improvement. Likewise, the losses the company faced in FY2008 and FY2009 were as much the result of the economic downturn as they were internal business factors.

As I was thinking about the two companies that I wanted to do for my course project on, I began to research companies on the internet and I ran across the merger between United and Continental airlines. The reason that I choose to do the merger is because I knew that they were going to go through many changes within this merger. Both airline companies have a lot to offer to each other with this merger that they can compete with Delta airlines one of the largest airline in the world. This merger will bring about several changes within both companies. In this paper I will be providing the different changes between both companies with the merger including the culture, systems and unions. Since they

In 2005, US Airways and AMR publically proposed a merger that was met with a great deal of resistance. The government has the responsibility to regulate mergers to ensure the merger doesn't violate antitrust laws. This merger had to be reviewed by several agencies such as the U.S. Justice Department, the U.S. Department of Transportation, the Air Transportation Stabilization Board, the Security and exchange commission, and U.S. Bankruptcy Courts. This was a very high profile merger proposal and it was met with a great deal of opposition (Cobb, et al., 2006).

Pikula (1999) observes that in merging two or more entities, the management of the companies must adhere to the Sherman Anti-trust Act which was established in 1890. This act was specifically established to prevent mergers from creating monopolies and cartels with an aim to exploit the consumers through determining prevailing market prices. If the merger results in a monopoly, it won’t be approved by the government. Employee contractual agreements must be considered before, during and after mergers. For the merger to go on seamlessly there should be shareholder approval. Initial approval by shareholders for the companies to consolidate their operations helps prevent conflicts from shareholders after the merger. Lastly, regulatory approval should be considered. The management must register the newly formed company. In addition, managers from the merging parties must consider agreements and contracts that the parties are engaging in as these will be transferred to the new company upon the merger.

A merger is a partial or total combination of two separate business firms and forming of a new one. There are predominantly two kinds of mergers: partial and complete. Partial merger usually involves the combination of joint ventures and inter-corporate stock purchases. Complete mergers are results in blending of identities and the creation of a single succeeding firm. (Hicks, 2012, p 491). Mergers in the healthcare sector, particularly horizontal hospital mergers wherein two or more hospitals merge into a single corporation, are increasing both in frequency and importance. (Gaughan, 2002). This paper is an attempt to study the impact of the merger of two competing healthcare organization and will also attempt to propose appropriate

Working beneath the American Airlines name, a standout amongst the most perceived brands on the planet, the consolidated aircraft will have a vigorous worldwide system and a solid money related establishment. The merger will offer advantages to both carriers' clients, groups, workers, financial

American Airlines (AA) and U.S. Airways have merged into one company. The problems resulting from this merger are from a technical aspect the need to merge over 1,400 back-end systems, and improve customer service and area these two airlines have struggled with in the past. If American Airlines continues to lose customers after this merger they might never climb out of bankruptcy that they filled for back in 2011. Merging the two back-end systems needs to be done delicately as this can be an area to compound your poor customer service past. American Airlines has a few options to deal with the back-end system merge by keeping two separate systems, merging one into the other, or creating one new one and merging both into that one. Dealing with

Information systems development: AirTran uses Navitaire as reservations system vendor while Southwest uses Sabre to better accommodates international flights. Also, AirTran uses online travel agencies for ticket distribution while Southwest sells its tickets via telephone and its website.

The merger between American Airlines and U.S. Airways is one that can be explained using static game theory models. The two players in the game would be American Airlines and U.S. Airways. Each one of the players would have something to gain from the merger, but they would also have something to lose. In this game American Airlines is our first player. American Airlines’ potential payoff is merging with a company that is maximizing profits, but is also lacking in the customer service department. U.S. Airways is player two, and in this game they are merging with a business that is suffering from chapter 11 bankruptcy, but is excelling in customer service.

American Airlines Group Inc. (AA) is the largest airline in the world. They seek to be an effectiveness organization that have better customer service, effective staff, and successful. In the following, the five stages of Organization Development process will use to implement the organizational development change process for the new “American Airlines Group Inc.”: