American Airlines Executive Summary
An Investment Business Memo for American Airlines
The buzz in the airline industry in February 2013 was all about the potential merger between American Airlines and US Airways since that would make the merged company the number one airline in the industry globally.
Despite the some cynical comments veteran investors hold for investing in the airline industry, which will be mentioned below, as well as the unforeseen lawsuit being thrown at their way, it is an investment that is strongly suggests a profitable investment in the long run.
First of all, the potential profitability of the merger could be foreseen by reviewing past cases of airlines mergers such as the merge between United Airlines and Continental Airlines as well as Delta …show more content…
”But the problems appear to be largely over. So far this year, United shares are up 22%, the S&P 500 Index is up 14.5% and Delta shares are up 66%. No doubt, Smisek seeks room to grow (Reed, 2013).” United is also looking to enhance their services for corporate customers by “revamping its aircraft that fly from JFK to Los Angeles and San Francisco, adding "flat bed" seating and faster, complimentary Wi-Fi to its premium sections. American is adding state-of-the-art Boeing 777-300ER aircraft to its fleet, the largest new aircraft used by a U.S. carrier since 1990. Its premium cabin has a walk-up bar stocked with snacks--a first for any U. S. airline, the company boasts” (Fickenscher, …show more content…
This would be the second time his smaller airline has merged with (taken over, some would say) a larger one, and the second time he has let go of the identity of the enterprise he built (HBS Working Knowledge at Forbes, 2013). ” Creating an executive management team that is functioning well as a strong team is crucial to an M&A situation. They also need to have a clear vision of the company in order to overcome all the minor speed bumps they will inevitably go through with the
The buzz in the airline industry in February 2013 was all about the potential merger between American Airlines and US Airways since that would make the merged company the number one airline in the industry globally.
Despite the some cynical comments veteran investors hold for investing in the airline industry, which will be mentioned below, as well as the unforeseen lawsuit being thrown at their way, it is an investment that is strongly suggests a profitable investment in the long run.
First of all, the potential profitability of the merger could be foreseen by reviewing past cases of airlines mergers such as the merge between United Airlines and Continental Airlines as well as Delta …show more content…
”But the problems appear to be largely over. So far this year, United shares are up 22%, the S&P 500 Index is up 14.5% and Delta shares are up 66%. No doubt, Smisek seeks room to grow (Reed, 2013).” United is also looking to enhance their services for corporate customers by “revamping its aircraft that fly from JFK to Los Angeles and San Francisco, adding "flat bed" seating and faster, complimentary Wi-Fi to its premium sections. American is adding state-of-the-art Boeing 777-300ER aircraft to its fleet, the largest new aircraft used by a U.S. carrier since 1990. Its premium cabin has a walk-up bar stocked with snacks--a first for any U. S. airline, the company boasts” (Fickenscher, …show more content…
This would be the second time his smaller airline has merged with (taken over, some would say) a larger one, and the second time he has let go of the identity of the enterprise he built (HBS Working Knowledge at Forbes, 2013). ” Creating an executive management team that is functioning well as a strong team is crucial to an M&A situation. They also need to have a clear vision of the company in order to overcome all the minor speed bumps they will inevitably go through with the