It has been announced that the 4th (American) and 5th (US Airways) largest airlines in North America are looking at a possible merger which would create the biggest airline in the US and indeed the world, knocking Delta off its perch.
American Airlines transported some 107 million passengers in 2012, whereas US Airways had 57 million (of which myself and my school were customers on our October break Maths & Science vacation to Orlando, Florida!). Delta are number one with 152 million passengers.
American Airlines main hub is Dallas/Fort Worth, Texas whereas US Airways is Charlotte/Douglas in North Carolina. So it remains to be seen if they would divide into two geographical spheres of influence much as the way Aldi Nord and Aldi Sud perform for the German grocer.
This could be a massive boost for the new airline as they will have an incredible reach and competitive firepower, though they will naturally have to see where they cannibalise each other. And it is estimated that when a merger takes place of such a size there can be errors and mistakes in bookings. It has been said that it could take 2 years for it to all get smoothed over.
The merger has came about due to PESTEC factors such as the global recession and increased fuel prices – which is an airlines main expenditure.
The new airline could have an impressive fleet of 1,500 planes at their disposal and some 120,000 employees.
American Airlines parent company AMR filed for Chapter 11 bankruptcy at the end of November and AA hope to come out as a stand alone company, but that is now looking ever more remote.
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