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MERGER OF AMERICAN AND US AIRLINES

American Airlines (AAMRQ) Buys US Airways (LCC)

Transaction Value: $11 billion

US Airways (LCC (Links to an external site.)Links to an external site.) had long been looking for a merger partner, but probably didn’t imagine it would find a deal quite like this. AMR Corp. (AAMRQ (Links to an external site.)Links to an external site.) — parent of American Airlines — emerged from bankruptcy with a deal in place to merge with US Airways, creating the world’s largest airline (Links to an external site.)Links to an external site. in the process.

When American Airlines filed for bankruptcy protection at the end of 2011, it knew that coming out of the process as a standalone company was a losing proposition. Enter US Airways — always a bridesmaid in the consolidation-crazy airline industry.

The deal gives American and US Airways a chance to compete against United Continental Holdings (UAL (Links to an external site.)Links to an external site.) and Delta Air Lines(DAL (Links to an external site.)Links to an external site.) — and a chance for American to pay back its creditors (http://investorplace.com/2013/12/mergers-and-acquisitions-biggest-deals-2013/4/#.U9vxu6PyTIY (Links to an external site.)Links to an external site.)

Write a 1,000 word paper in APA format (minimum of two references) addressing the impact of this merger on customers and employees. Consider the perspective of the *customer-what communication strategies would you use in order to reduce fear and anxiety related to the merger for customers? Consider the perspective of the *employees, from both companies-what communication strategies would you use in order to reduce fear and anxiety related to the merger for all employees?

*Customers are generally concerned with costs associated with service and the quality of service.

*Employees are generally concerned with employment (FT, PT, or unemployed), benefits (health, dental, vision, retirement plans, profit-sharing, etc.), working conditions, and performance expectations.

 

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