Us Airways Merger
Abstract
US Airways plan to create one of the two largest airlines in the United States is not without its problems. We will answer a few questions about US Airways’ hostile takeover attempt based on its success. First, if US Airways is triumphant, will it be in the best interest of Delta Airlines to be absorbed in such a takeover? A review of some pros and cons to this merger will reveal its affect on the industry. On the other hand, if US Airways is unsuccessful in their attempted takeover, what does the future hold for the six largest airlines in the United States? Are these kinds of consolidations good for the American public and the affect it will have on today’s airline industry?
US AIRWAYS
The Attempted Takeover A hostile takeover of any company is unpleasant for all involved except maybe those bidding for its possession. For US Airways, their attempted merger to create one of the largest airlines has done nothing but create an atmosphere of ill will and discontent among the workers of Delta Airlines, the company US Airways is attempting to takeover.
Delta Airlines Plan of Action …show more content…
They have worked diligently to restructure union contracts with their pilots and flight attendants and have attempted to work with their creditors in order to stay afloat. Concessions with their workforce and the refinancing and selling of the older, less efficient aircraft they own has freed up some additional cash flow. According to Delta Airlines (2006), “For the first nine months of 2006, length of haul adjusted passenger unit revenue increased 19% versus the prior year. During the same period, the rest of the airline industry’s passenger unit revenue increased only 12.6% versus the prior year.” “Delta is hoping to convince creditors, who will vote on which reorganization plan the airline
US Airways plan to create one of the two largest airlines in the United States is not without its problems. We will answer a few questions about US Airways’ hostile takeover attempt based on its success. First, if US Airways is triumphant, will it be in the best interest of Delta Airlines to be absorbed in such a takeover? A review of some pros and cons to this merger will reveal its affect on the industry. On the other hand, if US Airways is unsuccessful in their attempted takeover, what does the future hold for the six largest airlines in the United States? Are these kinds of consolidations good for the American public and the affect it will have on today’s airline industry?
US AIRWAYS
The Attempted Takeover A hostile takeover of any company is unpleasant for all involved except maybe those bidding for its possession. For US Airways, their attempted merger to create one of the largest airlines has done nothing but create an atmosphere of ill will and discontent among the workers of Delta Airlines, the company US Airways is attempting to takeover.
Delta Airlines Plan of Action …show more content…
They have worked diligently to restructure union contracts with their pilots and flight attendants and have attempted to work with their creditors in order to stay afloat. Concessions with their workforce and the refinancing and selling of the older, less efficient aircraft they own has freed up some additional cash flow. According to Delta Airlines (2006), “For the first nine months of 2006, length of haul adjusted passenger unit revenue increased 19% versus the prior year. During the same period, the rest of the airline industry’s passenger unit revenue increased only 12.6% versus the prior year.” “Delta is hoping to convince creditors, who will vote on which reorganization plan the airline