American Airlines Merger Essay

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Introduction On December 2013, American Airlines and US Airways merged to become the “biggest player in the market” according to American Airlines Group Inc. (previously known as AMR Corporation) SWOT Analysis (2014). The merger was a vital decision in enhancing the airline business for customers especially with the growing global tourism. Evidence shown by the World Tourism Organization (UNWTO), that international tourism grew by at least 5% in 2013 (p. 7). The merger has had many benefits, specifically in globalization. This merger has created a tremendous global network with 6,700 daily flights to more than 339 destinations in 54 countries; the merger also includes 100,000 worldwide employees (p. 7). Other benefits are that customers are enjoying the variety of choices and connectivity through this large worldwide network (p. 8). Positive results have come along with US Airways and American Airlines…show more content…
In Radulović (2013) study shows evidence that the majority global tourism of the United States contributes to about $6 trillion to the global economy, which also has a participation of 9% of global GDP. It also provides close to 260 million jobs worldwide and 100 million of those are directly correlated in the tourism industry (p. 29). American Airlines has already had a strong alliance with various international airlines, although merging with US Airways has permitted them to have a competitive advantage since it has created a bigger robust global network (American Airlines Group Inc. (previously known as AMR Corporation) SWOT Analysis, 2014). Global tourism increasing is big motivator in the airline industry and due to its increase the competitive pressure caused by globalization, the results will be a worldwide product that everybody has access to like the airlines (Radulović,
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