U.S. Airways/American Airlines merge in process...

I must say that airlines’ merging puts a pressure on air fares for traveling passengers but can also produce airline growth.  Throughout the past years, airline mergers have taken place due to profitability for its combined company; Delta/Northwest, United/Continental and currently in process American/US Airways.  The boards of American Airlines and U.S. Airways voted late Wednesday for an $11 billion deal to merge the two carriers. The result would make the combined airline retaining the name American Airlines, the largest in the world (Loyd, L.).  Consumers will most definitely complain about increase in prices and will try every alternative to seek cheaper prices elsewhere.  That will definitely be impossible due to the fact that American Airlines/U.S. Airways will be considered the largest merging airline, only if that consumer is still interested in that company for whatever reason that may be.  However, the choices on airlines are quite slim due to past and current merging.  Luckily, U.S. Department of Justice has the ability to limited on consumers and raising prices in which is still a working process.

Airlines have a very, very hard time making profits. US Airways endured a couple of round trips to bankruptcy court, and American is still trying to pull out of a bankruptcy filed in 2011 (Geewax, M.).  Merging AA/US Airways could definitely  be beneficial for American Airlines and could be pulled from bankruptcy pretty quickly by more consumers.  Monopolizing market is a main concern and must be prevented. This is why The Justice Department antitrust division is an important part because of that issue may occur.   

As in management, merging can definitely affect those who manage any department for either airline; American Airline/U.S. Airways and that it doesn’t make sense to have double management for each department.  Most likely for pilots-and even managers, there will be requirements that may have to be met depending on airline qualifications; American Airline and U.S. Airways. This is where seniority comes in.  Many pilots, flight attendants, baggage handlers, ticket agents may be laid off due to over staffing.  However, there is no question that the best worker with contributions to the company or great work ethics and experienced pilots with more flying time will be the chosen one by management to remain employed with the company once this proposed merger is approved by U.S.Department of Justice. Lets not forget the controversy of both unions combining together as well.  Both airlines would to analyze what will remain the same and what will change union wise before merge take place.

As far as merge is concern, this can only affect me as management by the amount of workload from both airlines combining and managing safety in which will be quite tough due to the differences between airlines qualifications and set certain standards.  As for a pilots perspective, it would not much effect them in a bad way due to the fact that they will obtain more experience in flying different aircraft's and senority in which they will be on top of the list to be rehired or remain with the new merged airline 'American Airline'.  Nevertheless, as mention before, there could be some lay-off due to over staffing.

Thanks for reading.
Ryan Pride

Sources:

Geewax, M.  (2013, February 14). How the american-us airways merger might affect you.  Retrieved from:  http://www.npr.org/2013/02/08/171506095/how-the-american-us-airways-merger-might-affect-you

Loyd, L.  (2013, February 14).  US airways, American merge in $11 billion deal.  Retrieved from:  http://www.philly.com/philly/business/20130214_US_Airways__American_merge_in__11_billion_deal.html

News Desk.  (2013, February 14).  American airlines-us airways merger by the numbers.  Retrieved from:  http://www.pbs.org/newshour/rundown/2013/02/american-airlines-us-airways-merger-by-the-numbers.htm

The New York Times.  (2010, May 8).  Why merge?.  Retrieved from:  http://www.nytimes.com/2010/05/09/opinion/09sun2.html?_r=0