Mergers & Acquisitions

Mergers & Acquisitions

Mergers & Acquisitions

The merger process of American Airlines (AMR) with the U.S Airways began in January 2012 when the AMR showed interest in the U.S Airlines. However, the problems with AMR began a decade earlier when two of its airlines got involved in the hijacking and September 11 terrorist attacks.

The FAA closed down all civil air operations, an interdiction that created huge losses in the industry. The crashing of AMR aircraft before take-off in way added salt to injury to the already distressed airline.

By the first half of year 2002, AMR had lost 1.1 billion U.S Dollars a figure that represented a quarter of lost amount by all airline in United States. By August of the same year, 7000 jobs were cut, First class flights  eliminated and the economic instability of its major Latin America market created more challenges for the company.

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The workers from both sides of the merger seemed quite excited with the merger, which proved to be a supporting pillar of a smooth transition of the American Airline Group Inc. (Murray, 2014).

The previous mergers in the Airline industry have been troublesome, unsuccessful and with lots and lots of labor strife. It is due to these challenges that the merged organization had to reconsider speeding up implementation of the modification (Lawton, 2013).

References
American Airlines, US Airways unveil $11 billion merger. (2013, February 14). The Free Library. (2013). Retrieved August 27, 2014 from http://www.thefreelibrary.com/American Airlines, US Airways unveil $11 billion merger.-a0318767936

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