U.S. Airways

Paper Summary:

This paper discusses the issues facing the airline industry in the United States. In particular, it discusses the large number of airlines vying for competition and how this is impeding profits. The paper focuses on U.S. Airways' decision to acquire Delta and analyzes whether U.S. Airways made the right strategic move in doing so. The paper concludes that there is cost saving potential, but that Delta is a poor fit for a variety of reasons.

From the Paper:

"The need for mergers in the airlines industry is compelling and combing airlines can have many synergies. But, has US Airways selected the right company to merge with? The answer appears to be no. Being number one does not necessary guarantee being profitable. There are usually cost saving opportunities through eliminating redundant operations in any merger, but the timing of the US Air acquisition and the fit between the companies are likely to impede progress. Given the immaturity of integration between US Airways and America West, US Airways is not in a position to take on a larger company that wishes to remain independent. Further, Delta hubs don't particularly compliment those of US Air. Perhaps rival United might rescues U.S. Air from its on blunder by making a higher bid for Delta."

Sample of Sources Used:

• Isidore, Chris. "U.S. Air Makes $8 Billion Bid for Delta." CNNMoney.com 15 Nov. 2006. Retrieved from Web site: http://money.cnn.com/2006/11/15/news/companies/us_airways_delta/index.htm?eref=rss_topstories
• Schroeder, Robert. "Hurdles Seen for U.S. Airways' Delta Bid." MarketWatch 15 Nov. 2006. Retrieved from Web site: http://www.marketwatch.com/news/story/Story.aspx?guid=%7BC622FF69-1990-4A80-A177-8B7DC1845098%7D&siteid=
• "US Airways Bids $8 Billion for Delta." The New York Times 15 Nov. 2006. Retrieved from Web site: http://www.nytimes.com/2006/11/15/business/15cnd-delta.html?ei=5088&en=a63b326c5606fc28&ex=1321246800&adxnnl=1&partner=rssnyt&emc=rss&adxnnlx=1164136047-uG899hrCso+gtPp1Ap10pw
• "US Airways Makes Hostile Offer for Delta." ABC News 15 Nov. 2006. Retrieved from Web site: http://www.abcnews.go.com/Business/wireStory?id=2654543&page=4
• "US Airways Offers $8B to Buy Delta." CBS News 15 Nov. 2006. Retrieved from Web site: http://www.cbsnews.com/stories/2006/11/15/business/main2182408.shtml?source=RSSattr=HOME_2182408

More papers on U.S. Airways:

• Essay # 71910 : "U.S. Airways "
• Case Study # 30014 : "British Airways"
• Essay # 52511 : "Flights AA 808"

APA Citation:

MLA Citation: