Evaluation of the Pending Merger of American Airlines and US Airways Research Paper

Evaluation of the Pending Merger of American Airlines and US Airways - Research Paper moralThe Pending Merger of American Airlines and US Airways U.S. Airways and American Airlines are set to merge so as to form the largest air hose across the entire clump. There is a proposal to settle the calculate with referee Department over an antitrust lawsuit on their conjugation which is projected to cost US$17 billion (Johanson, 2013). Assent of the plan to merge the two air lanes is watch bulge outn as a potential for resolving competitor issues while at the same time contribute to creation of the largest global airline. An in-depth evaluation of the planned merger indicates that there are certain things which are pertinent in case a settlement of the matter happens. One of the prospected outcomes from the unfinished merger of the two airlines is that more slots for airports leave be experienced for cheaper carriers in the American airline market. The two airlines go forth have to separate slots and facilities relative to airline costs to realize alter competitive advantage in airline application (Feldman, 2013). This implies that the merger will lead to co-ordination that will see it control at least 80 per cent of American commercial market in airline business network. The merger of the two US airlines will also gain slots for cheaper carriers across the US. ... g for eternal rest bearers at key US airstrips, this settlement guarantees air transport travelers that they will see more tilt on persistent and interfacing tracks all around the nation. Therefore, there will be increased competition in American airline industry which will then benefit millions of airline customers follo pull ing improved airline travelling options and reduced travelling costs in the airline industry. Other airline players such as JetBlue and Southwest Airlines will have an opportunity to gain in the airline industry (Portillo, 2013). This is because American and US Airways will leave out some slots as well as facilities in various airports. This will at the same time increase competition in the American airline business market. blockage of the merger is also deemed to bring disruption in the mutual relationships that have always existed among legacy carriers. Furthermore, it will increase accessibility to major airports which have previously had cases of congestion. There will also be provision for varied choices to the airline consumers while also enhancing airline fares accruing from increased competition in the airline industry on all national flights in the US (Feldman, 2013). Some of the already existing airlines will win big from the Justice Department on divestiture settlement process since they presently operate on leasing out of slots from American Airlines. Other airlines also stand chances to have their shares in the American airline market rising. The pending merger will see the New American airline becoming the largest global carrier. It will really be the leading carrier in the world with regards to offering more comprehensive networks across the globe (Johanson, 2013). The same will be true with their services in terms of business excellence