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S. Air hub in Phoenix is nearby the Delta hub in Salt Lake City. Typically, airlines seeking out acquisition targets seek to fill voids in hub locations rather than select airlines with lots of hubs close to their own. For example, critics of the U.S. Air offer state that United would have been a far better suitor for Delta because of the synergies between United's tran-Pacific routes and international networking and Delta's Atlantic and Latin American routes. And, critics believe that U.S. Airlines should have targeted bankrupt Northwest as an acquisition target rather than Delta. Most experts expect United to make a counter bid for Delta
The need for mergers in the airlines industry is compelling and combing airlines can have many synergies. But, has U.S. 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 U.S. Air acquisition and the fit between the companies are likely to impede progress. Given the immaturity of integration between U.S. Airways and America West, U.S. 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 U.S. Air. Perhaps rival United might rescues U.S. Air from its on blunder by making a higher bid for Delta.
Bibliography
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
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
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
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
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 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
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
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
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 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
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
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
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Similarly, this could influence the international airline community. Then, a stable economy is highly dependent upon a stable oil price, which once again is not the case. "The environment will continue to become more competitive as the LCC's continue to become more convenient. Business fares will continue to drop. Leisure fares won't raise much until capacity is generally in line with demand, which won't occur until much of the
AMERICAN AIRLINES AND U.S. AIRWAYS MERGER PLEASE ASSIGN THIS PAPER TO BETTY 2115322 QUESTION MUST BE TYPED IN BOLD AND NUMBERED Assignment 2: Mergers Acquisitions Due Week 6 worth 200 points Use Internet research a publicly traded company United States undergone a merger acquisition (3) years. Examine the circumstances that resulted in the merger or acquisition for the selected company. Speculate on two (2) reasons why the resulting decision to merge or