In December of 2013, US Airways and American Airlines merged together for $11 billion to form what is now known as the nation’s largest airline. In 2011, CEO of US Airways, Doug Parker, set his sights on a merger when AMR’s American Airlines filed for bankruptcy. Both American Airlines and US Airways have gone through mergers in the past, and anticipate learning from past mistakes to make this a successful business opportunity. For example, in 1971, American Airlines experienced one of several mergers with Trans Caribbean Airway, and more recently in 2001 with TWA. Similarly, in 2005, US Airways merged with American West and later purchased Pacific SW and Piedmont. Perhaps the main reason for merging the two smaller airlines was to …show more content…
One of Parker’s main concerns is the combining the computer system that did not go well in his previous merger. It is imperative to preserve customer information, flight information and rewards, or this transition will wreck havoc for all involved. Lastly, employees with have to contend with job reductions, which at this time has only affected American Airline executives. However, maintaining open lines of communication with employees and customers will minimize some discourse during the union. Doug Parker, CEO is taking careful consideration to balance the new organizational Structure by devising cohesive arrangement formed from the many differences of the original two companies. States Parker: We are taking the best of both Us Airways and American Airlines to create a formidable competitor, better position to deliver for all of or stakeholders. We look forward to integrating our companies quickly and efficiently so the significant benefits of the merger can be realized (“American Airlines”, 2013). The combined airlines will retain the original American Airlines home base in Dallas/Ft. Worth. In addition, they will maintain the American Airlines Group name and keep the new American logo on the planes. Last but not least they will proceed with the American Airlines reservation system.