...approval to combine with US Airways which will be the world’s biggest airline. This whole transaction is consider to be a merger because both Airline companies are agreeing to pool their operations and create a new entity. There are no indications that neither of these two companies are buying each other, they are just going to operate under one same management. This merging deal would be beneficial for both companies because of many reasons such as: lower cost structure, business experience, reduced rivalry and increased bargaining power over suppliers and buyers. Lower cost structure: by pooling such a two huge airline companies, US Airways and American Airlines can reach economies of scale and be more efficient with lowering their cost structure. Business experience: both of these companies have been operating for a long period of time. Few years ago, American Airlines filed for Chapter 11 bankruptcy which resulted in cutting back labor and other cost. This specific economic circumstance can be beneficial learning curve and can lead to a better business practice in the future. Reduced rivalry: after this merger is official in fall of this year, American Airlines and US Airways are going to be the biggest airline company. They don’t have to compete with one another and cash proceeds are going to go to only one bank account instead of two. Increased bargaining power over suppliers and buyers: American Airlines and US Airways combined size will give them...
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...Assignment 2: Mergers and Acquisitions November 17, 2014 Contemporary Business There are many reasons for two competing companies to merge together or for one to be acquired by the other. This paper will focus on the circumstances behind the merger of American Airlines, Inc. and US Airways Group, the positive and negative effects of the merger, the change in organizational structure, and whether or not there were any changes in human resources management practices due to the merger. American Airlines, Inc. was formed in 1934 and has since grown tremendously. One of its competitors, since its formation, has been US Airways Group. On December 9, 2013, the two companies merged to form American Airlines Group. The merged venture is now headquartered in Fort Worth, Texas (American Airlines Group, 2014). “Under the terms of the merger agreement, US Airways stockholders would receive 28% of the diluted equity of the combined airline, with the remaining 72% diluted equity ownership of the combined airline to be distributed to American, its labor unions and current employees” (Bringardner, 2013). This merger creates the world’s largest airline, which can certainly be seen as a reason behind the merger. The new American Airlines Group is sure to become the biggest contender in the airline industry. “Worldwide, it will operate nearly 6,700 daily flights to more than 330 destinations in more than 50 countries. The two airlines, for now, have more than 100,000 employees worldwide”...
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...Phillips – LFA union president Jody Rogers – LFA union president League of Flight Attendants (LFA) Negotiating Team Bill Orleans – director of labor relations Ross Irving – director of human resources Kristine Lamb – director of in-flight services Christian Andrew – executive vice president Willie Sanders – senior vice president of operations Tom Windham – chief executive officer (CEO) and president Company Negotiating Team Magic Carpet Airlines (MCA) -1961 History of Merger 1. Keeping union members informed of negotiation progress. 2. Getting union members involved. 3. Convincing the company that the union’s demands were serious. 4. Setting an issue only with the unanimous consent of the negotiating committee. Strategies of the Union The merger of the two airlines created a small “national” airline (define as a carrier with sales between $100 million & $1 billion) with sales of $140,265,000. River City Airlines (RCA) - 1969 January 1987, Magic Carpet Air purchased River City Airlines and merged two operations. In May 1988, Magic Carpet Air entered into a marketing agreement with a major national carrier and became a “feeder”airline for that carrier. Prior to 1989, the flight attendants at neither company were unionized. Both MCA & RCA flights worried about how management resolved personnel issues such as merging personnel seniority lists. Workers contacted the League of Flight Attendants (LFA). The LFA won a union certification election...
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...American Airlines is also able to spread their reach to all corners of the world through the strategic partnerships of over 15 other airline corporations. This strategic alliance allows American Airlines to expand their capabilities and consumer base. Their rewards program, AAdvantage, is continually ranked among the best in the business and offers many privileges to members. American Airlines also operates several regional airlines, allowing them to reach several smaller airports beyond their main hubs. By merging with US Airways, American Airlines has been able to reach a larger share of the domestic airline market and is also able to combine the benefits of the experience of both corporations. WEAKNESSES American Airlines is in the process of completing a merger with US Airways and will form the world’s largest airline. Because this merger is still in the process of happening, it creates a large vulnerability and weakness for American Airlines. In regards to the merger, both American Airlines and US Airways are both still operating their own ticketing and booking services, and the two systems are not always able to...
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...statement is: "Setting the industry standard for safety and security; providing world-class customer service; creating an open and participative work environment which seeks positive changes, rewards innovation and provides growth, security and opportunity to all employees; and providing consistently superior financial returns for shareholders." (www.AA.com). An article written by Gaby Logan from USA Today stated: “Despite this government-funded measure, several prominent AAs declared bankruptcy not long after the 9/11 attacks, included US Airways and United Airlines.” As a result of the massive financial losses due to lack of passenger demand, canceled flights and increased expenditures for security, even airlines that did not have prior financial issues were forced to renegotiate labor contracts and lay off high numbers of employees, such as the 7,000 employees laid off by AA.”(Gaby Logan, USA Today article published Nov 2009). US Airways, Delta Airlines and Southwest Airlines, just to a name few, did recover from that financial hardship. However, AMR has cut cost significantly the past 11 years and still has recorded heavy losses in every year with the expectations of 2006 and 2007 (Cullen, Yamaza and Chew, 2010).While AMR is betting heavily on resurgence of supply and demand of commercial air travel as the economy recovers, analysts expect...
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...the resistance? By changing these issues with my team I would improve the customer services, company moral and gained profit. Our team consists of Tigest Alemu, Amanda Chinaglia, Antony Harding, Laurie Kiernan and Enrique Somoza. The professor randomly picked the team members so no one knew each other prior to the class. At first I did not know what team I was suppose to be in. The team had already met the first week and introduced themselves and assigned the questions to each other. We all had time to meet in class and everyone agreed on picking US Airways and everyone agreed on doing research and answering the questions for our next group meeting. The team discussed the recent changes, of US Airways and Laurie said she was going to ask her brother about US Airways because he works for them. In between team meetings, all communication was done via e-mail and phone conversations. By the third week, all the team members had come to the unanimous pick of the questions they wanted to answer. Enrique volunteered to do the power point and everyone was to work on his or her part of the presentation and e-mail to Enrique. The presentation was divided among the team members. Each member reviewed the parts they were presenting. All questions and concerns about the presentation were addressed and a mock rehearsal of the presentation was done to ensure everyone’s comfort with presenting. US Airways is ranked amongst the major airline based in US. The airline is ranked as sixth...
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...LABOR RELATIONS MG420 Kevin Erne Instructor: Stephen Fant Park University Internet Campus A course paper presented to the School for Arts and Sciences and Distance Learning in partial fulfillment of the requirements for the degree of Baccalaureate Labor Relations Park University November, 2012 1. Define the term “collective bargaining” and list and describe four issues that are mandatory components of a collective bargaining agreement. The Cornell University School of Law defines collective bargaining as the process of negotiating the conditions of employment between a group of employees and their employer (Cornell University Law School). In most cases, the employees are represented by a labor organization or union. The union bargains with the employer over such categories as compensation, personnel policies and procedures, employee rights and responsibilities, employer rights and responsibilities, union rights and responsibilities, and dispute resolution and ongoing decision making (Budd, 229-230). If all goes well and all parties involved come to an agreement the result of the negotiations ends with a collective bargaining agreement (CBA). If you were to conduct a Google search for “collective bargaining” your search results would be endless. I ran a search under news and came up with an article in the Huffington Post titled “Michigan Proposal 2: Should Voters Guarantee The Right To Collectively Bargain In the State Constitution...
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...Abstract India, home to one-sixth of the world’s population, is quickly becoming one of the world’s economic engines. Its bureaucratic and outdated regulatory policies have been reformed resulting in a three-fold increase in the number of scheduled airlines and a five-fold increase in the number of aircraft operated. The largest and most popular airline in Mumbai India is Jet Airways started in 1993. Naresh Goyal (both founder and owner) still owns eighty percent of the company, and oversees all aspects of the business. This paper reviews one of the airlines, jet airways, strategic evaluation process to select the next corrective action for the airlines and also the impact on overall aviation industry. How to do a strategic evaluation? Strategic Evaluation is the final phase of Strategic management. Strategy Evaluation is as significant as strategy formulation because it throws light on the efficiency and effectiveness of the comprehensive plans in achieving the desired results. The managers can also assess the appropriateness of the current strategy in today’s dynamic world with socio-economic, political and technological innovations. The process of Strategy Evaluation consists of following steps- 1. Fixing benchmark of performance - While fixing the benchmark, strategists encounter questions such as - what benchmarks to set, how to set them and how to express them. In order to determine the benchmark performance to be set, it is essential to discover the special requirements...
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...US AIRWAYS GROUP INC (LCC) 10-K Annual report pursuant to section 13 and 15(d) Filed on 02/22/2012 Filed Period 12/31/2011 Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K (Mark One) þ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2011 or o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to US Airways as specified in its charter) Group, Inc. (Exact name of registrant (Commission File No. 1-8444) Delaware (State or other Jurisdiction of Incorporation or Organization) 111 West Rio Salado Parkway, Tempe, Arizona 85281 (Address of principal executive offices, including zip code) (480) 693-0800 (Registrant's telephone number, including area code) Securities registered pursuant to Section 12(b) of the Act: Title of Each Class Common Stock, $0.01 par value Name of Each Exchange on Which Registered New York Stock Exchange 54-1194634 (IRS Employer Identification No.) Securities registered pursuant to Section 12(g) of the Act: None (Exact name of registrant as specified in its charter) (Commission File No. 1-8442) Delaware (State or other Jurisdiction of Incorporation or Organization) 111 West Rio Salado Parkway, Tempe, Arizona 85281 (Address of principal executive offices, including zip code) (480) 693-0800 (Registrant's telephone number, including...
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...travel. Delta is part of the “big four” legacy airline carriers, contributing to approximately 15.1% of the US domestic airline market share. Delta and its subsidiaries offer flights to 341 destinations with over 13,000 flights daily. Established in 1924, agricultural scientist Collet Woolman founded Delta as a crop dusting service. A few years later, the crop dusting service broke away and formed Delta Air Service. As time passed, Delta successfully expanded through technological innovations, research and development, and acquisitions with alliances. Product quality, consumer relations, and product safety are all key components to a successful airline carrier. In the past, Delta has demonstrated strong customer safety initiatives, thus contributing to their success. In contrary, Delta has been faced complainants from customers related to lost luggage, poor performance, and poor operations. Merging airlines is often complex can sometimes backfire. Much of Deltas growth in the last 10 years is attributed to the Northwest Airlines acquisition in 2008. When the two airlines merged, revenue increased and net income grew substantially, despite other costly economic factors. In order to successfully execute this merge, the management executives at Delta carefully planned the various stages of this risky move. Before merging, Delta faced issues with customer service, labor, and internal operations; they even filed bankruptcy in 2005. The company experienced several years of...
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...• Segmentation: • Geographic Segmentation- Secondary Hubs- Mumbai, Delhi & Kolkatta. Focus Cities- Cochin, Pune, Ahmedabad, Hydrabad, Indore, Jaipur & many more. International Destinations- London, Colombo, Dubai, Singapore, Bangkok, Dhaka, Hog Kong, Kuala Lumpur & Maldives. • Demographic Segmentation- Gender- both Male & Female Social Classes- Age group from 25 to 45 years. Income Level- Higher and Higher-Middle Income group. Targeting: • Kingfisher First Class- company executives • Kingfisher Class- Middle, Upper-Middle, Lower-Upper segment. • Positioning: • Lifestyle- FunlinersExperience, Designer Interiors • Benefits- last time booking facilities, refund in case of cancellation, In-flight Entertainments and many more • Quality- World class service provider, comfortable seats, etc • PESTEL Analysis Political Regulators: Directorate General of Civil Aviation(DGCA) - controls flying Licenses, pilots, certifying aircrafts and procedures to govern airports & airspace. Airport Authority of India(AAI) • Assigned the responsibility of managing National and International airports and administration through Air Traffic Control(ATC). FDI ceiling in Airlines sector is 49% currently. FDI limits: - 100% for Greenfield airports - 74% for the existing airports - 100% for NRI’s. • Economic Factors Contribution to the Indian Economy Rising cost of fuel Investment in the sector of Aviation. The growth of middle income group family affects the Aviation...
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...American Airlines Strategic Report for American Airlines Jed Cullen Kevin Yamazaki Deirdre Chew April 7, 2010 April 7, 2010 Page 1 American Airlines Table of Contents Executive Summary ............................................................................................ 3 Company History................................................................................................. 4 Financial Analysis ............................................................................................... 8 Current Financial Position.................................................................................. 8 Industry Comparable Analysis ......................................................................... 12 Stock Performance .......................................................................................... 14 Management and Analyst Outlook................................................................... 15 Competitive Analysis ........................................................................................ 16 Internal Rivalry ................................................................................................. 17 Supplier Power ................................................................................................ 18 Buyer Power .................................................................................................... 19 Entry and Exit ..............
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...Contents South West Airlines 4 Goals and Objectives 5 Their Mission and Vision Statement 5 Strengths 6 Weaknesses 6 Opportunities 8 Threats 8 Analyzing company’s external environment 9 Analyzing the nature and strength of competitive forces 11 Competitive pressure stemming from bargaining power of buyer: 16 Determining whether the collective strength of the five competitive forces is conductive to good profitability: 17 Competitive pressure from seller of substitute products 18 Sign that competition from substitute is strong 19 Competitive pressure stunning from supplier bargaining power 20 PESTEL ANALYSIS 24 SCENARIO PLANNING 56 SCENARIO NO.1 58 SCENARIO NO.2 59 SCENARIO NO.3 59 SCENARIO NO.4 60 SCENARIO NO.5 60 SCENARIO NO.6 60 SCENARIO NO.7 61 SCENARIO NO.8 61 Competitors Objectives 62 Competitor's Current Strategy 63 Competitor's Resources and Capabilities 64 Competitor’s Assumptions 66 Regional Factors 67 Value chain activities: 68 Key competitive advantages: 72 Solutions: 82 Weights of Key success factors in five airlines: 86 COMPETITIVE ADVANTAGE 92 FIVE GENERIC COMPETITIVE STRATEGIES: 92 LOW COST PROVIDER STRATEGIES: 92 DIFFERENTIATION STRATEGIES: 95 BEST-COST PROVEDER STRATEGIES: 96 FOCUS (MARKET NICHE) STRATEGY: 96 STRATEGIC ALLIANCE AND PARTNERSHIP: 97 MERGER AND ACQUISITION STRATEGIES. 98 VERTICAL INTEGRATION. 98 OUTSOURSING. 98 OFFENSIVE...
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...BUSS 1002 Short Notes Date: Wednesday 20 June, 1.50pm Length: Exam is 3 hours + 10 minutes reading time SECTION A (key concepts and application) – worth 20 marks SECTION B (A-CA-R application to a business problem) – worth 30 marks SECTION C (company analysis – same format as Company Report; company will be from the aviation industry) – worth 50 marks All three sections will require you to draw on your knowledge in relation to the main themes taught throughout the semester. SECTION A NOTES 2. CSR & SUSTAINABILITY * Business’s are a key player in society change agents (force for good or evil) * Changing nature of society has brought with it changing attidutes * The role of business in society (GFC) * Responsibility to society and the environment (climate, resources, CSR & S) * Corporate Social Responsibility Continuum * CSR Reluctance * CSR Grasp * CSR Embedment (integrate social objectives w/ bus goals; balance social & eco profits) * Definition of CSR * Notion that corporations have a obligation to society to take into account not just their economic impact, but also their social and environmental impact * Five dimensions of CSR * Environmental, Social, Economic, Stakeholders, Voluntariness (ESESV) * Align with triple bottom line of economic, environmental and social goals. * The Challenge * Energy industry has allowed economic progress, provides power, heat, light...
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...Introduction……………………………………………………………………………..4 2. Over view of company profile………………………………………………………….4 3. The Problems and Issues of the Company……………………………………………5 4. Objectives behind the Selection of Problem…………………………………………..6 Chapter: 2 2.1 Overview of Problem solving and Decision making……………………………………8 2.2 Problem Solving Process in Jet Airways………………………………………………..9 Chapter: 3 3.1 Introduction of the Tools Used by the Jet Airways……………………………………11 3.2 Solution Taken by the company ………………………………………………………..12 3.3 Alternative solution………………………………………………………………………12 3.4 Impact of success ………………………………………………………………………...13 Chapter: 4 4.1 SWOT Analysis of the Approaches Used by the Company…………………………..13 4.2 Comparing the Company’s Adopted model with other model………………………..14 4.3 Finding from the Comparison Results………………………………………………….15 4.4 Recommendations………………………………………………………………………...16 Chapter: 5 5.1 Introduction of strategy…………………………………………………………………..16 5.2 Strategies adopted to illustrate your suggestions are appropriate…………………….16 5.3 Implementation of your recommendation model against Organizational Problem or Issues…………………………………………………………………………………………….17 Conclusions……………………………………………………………………………………...18 PROBLEM SOLVING AND DECISION MAKING IN JET AIRWAYS Chapter: 1 1.1 Introduction The Problem Solving and Decision making process focuses...
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