The Airline Merger

Paper Summary:

This paper examines the implications of the Lufthansa and Swiss Air merger for the industry in Europe and throughout the world. The paper explains the three basic virtues of mergers and acquisitions and then considers how the merger between Lufthansa and Swiss was basically untested. The paper shows the potential for significant synergies between the two companies and notes the few regulatory hurdles to overcome. The paper demonstrates that the benefits to consumers are real and the benefits to both companies will continue to materialize over time as Swiss Air is incorporated into Lufthansa.

From the Paper:

"Rumors of a merger between Lufthansa and Swiss Air began to crop up in early 2005. It wasn't until March 22, 2005 that both companies confirmed the merger by signing an agreement to move forward with the acquisition of Swiss Air by Lufthansa (Aviation, 2005; More European, 2005). The direct long-term benefits of this deal will be to Lufthansa. The airline is the national airline of Germany as well as the third largest in Europe (Aviation, 2005). Its decision to pursue the acquisition of Swiss Air was superficially in order to promote growth and reduce costs."

Sample of Sources Used:

• After regulatory approval; profitable cooperation between Lufthansa Cargo and Swiss WorldCargo in the offing. (2005, July 19). Europe Intelligence Wire.
• Aviation correspondent. (2005, July 6). Lufthansa acquisition of Swiss Air. Dance with Shadows. Retrieved March 15, 2006, from http://www.dancewithshadows.com/airlines/lufthansa-swiss-air-acquisition.asp
• Coming together. (2005, April 1). Airline Business.
• Dolan, S. (2006, February). EC aviation scene. Air and Space Law, 31(1), pp. 60-78.
• EC expected to okay LH-Swiss merger. (2005, May). Air Transport World, 42(5), p. 9.

More papers on The Airline Merger:

• Business Plan # 88026 : "Airline Merger"
• Essay # 69365 : "Competition in the Airline Industry"
• Cause and Effect Essay # 111831 : "Trends in the Airline Industry"

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