Mergers & Acquisitions
Marcelo Gomes Freire Partner
Corporate management
Merger
• Consolidation
Acquisition
• Takeover
American Airlines – US Airways
“This agreement has the potential to shift the landscape of the airline
industry.” Eric Holder
Table of content
 Facts and figures
 American Airlines
 US Airways
 The merger
 Lawsuit
 US regulators’ decision
 Forecast and possible consequences
 Sources
American Airlines
Founded: 1930
Main Hub: Dallas/Fort Worth
Fleet: 616
Destination: 273
4th largest airline company
worldwide
US Airways
Founded: 1937
Main hub: Charlotte/Douglas
Fleet: 631
Destination: 198
6th largest airline company
worldwide
The Merger
• The world’s larger airline company
• $11bn merged entity
• 1’500 aircrafts
• $39bn revenue
• Employ 100’000
• Third major US airline merger since 2008
Routes map after merging
Antitrust lawsuit
Joseph Alioto – FDC in SF on
behalf of 40 consumers
Fewer flights
Reduced service to small
cities
Lower quality of service
4 airlines controlling 90% of
domestic airline industry
US regulators
Settlement with conditions
Giving up slots to low cost
carriers in several airports
• 57 Washington DC
• 34 New York City
• 2 slots at
• Boston
• Chicago
• Dallas
• Los Angeles
• Miami
Forecast / Consequences
Judge approval
More competition with low cost carriers
Rise of ticket prices
Finalization of American Airlines turnover
Sources
 http://theboar.org/wp-content/uploads/2013/10/Image-3.jpg
 http://www.tnooz.com/wp-content/uploads/2013/08/american-airlines-us-airways-merger.jpg
 http://www.aa.com/i18n/aboutUs/whereWeFly/maps/world.jsp
 http://www.usairways.com/en-US/routemap.html
 http://netdna.webdesignerdepot.com/uploads/2013/02/american-airlines-2013-flight-symbol-1024x707.jpg
 http://www.travelandtourworld.com/wp-content/uploads/2013/11/US-Airways-Logo.jpg
 http://ksaz.images.worldnow.com/images/23806826_SA.jpg
 http://www.newrepublic.com/article/115580/us-airways-american-merger-domestic-international-route-maps
 http://3rxg9qea18zhtl6s2u8jammft.wpengine.netdna-cdn.com/wp-
content/uploads/2013/09/cD03MGVkNTVmYWU4MzZjZjg0MjhjOWE0ODNhYzY3MmU4NSZnPWQ1OTlkOGJlMjBlYjE0YzViOGY1YmVmZTNhMDJlNjJm-1280x727.jpeg
 http://i2.cdn.turner.com/money/2012/04/20/news/companies/us-airways-american-airlines/american-airlines-us-airways.gi.top.jpg
 http://www.vitopalmisano.com/data/photos/298_1ohare_international_airport__chicago__il.jpg

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American Airlines

  • 1. Mergers & Acquisitions Marcelo Gomes Freire Partner
  • 3. American Airlines – US Airways “This agreement has the potential to shift the landscape of the airline industry.” Eric Holder
  • 4. Table of content  Facts and figures  American Airlines  US Airways  The merger  Lawsuit  US regulators’ decision  Forecast and possible consequences  Sources
  • 5. American Airlines Founded: 1930 Main Hub: Dallas/Fort Worth Fleet: 616 Destination: 273 4th largest airline company worldwide
  • 6. US Airways Founded: 1937 Main hub: Charlotte/Douglas Fleet: 631 Destination: 198 6th largest airline company worldwide
  • 7. The Merger • The world’s larger airline company • $11bn merged entity • 1’500 aircrafts • $39bn revenue • Employ 100’000 • Third major US airline merger since 2008
  • 9. Antitrust lawsuit Joseph Alioto – FDC in SF on behalf of 40 consumers Fewer flights Reduced service to small cities Lower quality of service 4 airlines controlling 90% of domestic airline industry
  • 10. US regulators Settlement with conditions Giving up slots to low cost carriers in several airports • 57 Washington DC • 34 New York City • 2 slots at • Boston • Chicago • Dallas • Los Angeles • Miami
  • 11. Forecast / Consequences Judge approval More competition with low cost carriers Rise of ticket prices Finalization of American Airlines turnover
  • 12. Sources  http://theboar.org/wp-content/uploads/2013/10/Image-3.jpg  http://www.tnooz.com/wp-content/uploads/2013/08/american-airlines-us-airways-merger.jpg  http://www.aa.com/i18n/aboutUs/whereWeFly/maps/world.jsp  http://www.usairways.com/en-US/routemap.html  http://netdna.webdesignerdepot.com/uploads/2013/02/american-airlines-2013-flight-symbol-1024x707.jpg  http://www.travelandtourworld.com/wp-content/uploads/2013/11/US-Airways-Logo.jpg  http://ksaz.images.worldnow.com/images/23806826_SA.jpg  http://www.newrepublic.com/article/115580/us-airways-american-merger-domestic-international-route-maps  http://3rxg9qea18zhtl6s2u8jammft.wpengine.netdna-cdn.com/wp- content/uploads/2013/09/cD03MGVkNTVmYWU4MzZjZjg0MjhjOWE0ODNhYzY3MmU4NSZnPWQ1OTlkOGJlMjBlYjE0YzViOGY1YmVmZTNhMDJlNjJm-1280x727.jpeg  http://i2.cdn.turner.com/money/2012/04/20/news/companies/us-airways-american-airlines/american-airlines-us-airways.gi.top.jpg  http://www.vitopalmisano.com/data/photos/298_1ohare_international_airport__chicago__il.jpg

Editor's Notes

  • #13: http://www.theguardian.com/business/2013/nov/12/american-us-airlines-merger-justice-department http://www.bbc.co.uk/news/business-24918664 http://www.huffingtonpost.com/2013/07/03/american-us-airways-sued-block-merger_n_3539556.html