Mergers & AcquisitionsJulia & Daniel Lopes

Corporate management

Merger

• Consolidation

Acquisition

• Takeover

American Airlines – US Airways“This agreement has the potential to shift the landscape of the airline industry.” Eric Holder

Table of content

Facts and figures American Airlines US Airways

The merger

Lawsuit

US regulators’ decision

Forecast and possible consequences

Sources

American Airlines

Founded: 1930

Main Hub: Dallas/Fort Worth

Fleet: 616

Destination: 273

4th largest airline company worldwide

US Airways

Founded: 1937

Main hub: Charlotte/Douglas

Fleet: 631

Destination: 198

6th largest airline company worldwide

The Merger

• The world’s larger airline company• $11bn merged entity• 1’500 aircrafts• $39bn revenue• Employ 100’000• Third major US airline merger since 2008

Routes map after merging

Antitrust lawsuit

Joseph Alioto – FDC in SF on behalf of 40 consumers

Fewer flights

Reduced service to small cities

Lower quality of service

4 airlines controlling 90% of domestic airline industry

US regulators

Settlement with conditions

Giving up slots to low cost carriers in several airports

• 57 Washington DC

• 34 New York City

• 2 slots at• Boston

• Chicago

• Dallas

• Los Angeles

• Miami

Forecast / Consequences

Judge approvalMore competition with low cost carriersRise of ticket pricesFinalization of American Airlines turnover

Sources

http://theboar.org/wp-content/uploads/2013/10/Image-3.jpg

http://www.tnooz.com/wp-content/uploads/2013/08/american-airlines-us-airways-merger.jpg

http://www.aa.com/i18n/aboutUs/whereWeFly/maps/world.jsp

http://www.usairways.com/en-US/routemap.html

http://netdna.webdesignerdepot.com/uploads/2013/02/american-airlines-2013-flight-symbol-1024x707.jpg

http://www.travelandtourworld.com/wp-content/uploads/2013/11/US-Airways-Logo.jpg

http://ksaz.images.worldnow.com/images/23806826_SA.jpg

http://www.newrepublic.com/article/115580/us-airways-american-merger-domestic-international-route-maps

http://3rxg9qea18zhtl6s2u8jammft.wpengine.netdna-cdn.com/wp-content/uploads/2013/09/cD03MGVkNTVmYWU4MzZjZjg0MjhjOWE0ODNhYzY3MmU4NSZnPWQ1OTlkOGJlMjBlYjE0YzViOGY1YmVmZTNhMDJlNjJm-1280x727.jpeg

http://i2.cdn.turner.com/money/2012/04/20/news/companies/us-airways-american-airlines/american-airlines-us-airways.gi.top.jpg

http://www.vitopalmisano.com/data/photos/298_1ohare_international_airport__chicago__il.jpg