Saturday, August 20, 2011

What if U.S Air and American merged?

Many of you may think it impossible. I understand that AMR and US are very different companies. They have different structures and are in competing alliances. They are more similar than meets the eye though. They are the two remaining legacy carriers that haven't merged.

If you look at history you will see that Pan Am, Eastern, TWA, United, Continental, Delta, and Northwest have all participated in major mergers and aquisitions. A few years ago American was the nation's largest airline. With the UA, CO, DL, and NW mergers they will soon fall to #3.

They have complimentary fleets and routes. Without this merger American will lose it's edge because of less routes and smalle aging fleet. US has already fallen due to those issues. A merger would allow US and American to better compete on the global scale. I wouldn't doubt it.
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