1. Airline Mergers & Acquisitions

2. MERGERS AND ACQUISITIONS
DEFINITION OF MERGER
MERGER vs ALLIANCE

3. DEFINITION MERGER ACQUISITION
Mergers are all operations which imply structural changes and occurs as a result of when two companies combine to form a single company
A merger is very similar to an acquisition or takeover, except that in the case of a merger existing stockholders of both companies are involved to retain a shared interest in the new corporation
ACQUISITION
By contrast, in an acquisition one company purchases a bulk of a second company's stock, creating an uneven balance of ownership in the new combined company.

4. IMPACTS OF MERGER / ACQUISITION
Important issues related to airline mergers and acquisitions are:
Time - Airline mergers and acquisitions take much longer time to materialize than mergers and acquisitions in other industries. This is due to the fact that a lot of considerations are involved from costs to operational issues which are generally large in magnitude and complex in nature
Approvals - Approvals are required from governments, often from different levels and different authorities to establish airline mergers and acquisitions
Efficiency - Airline mergers and acquisitions can lead to cost efficiency of the operators by the elimination of overlapping routes. For the travelers however, this often leads to lesser frequency of flights.
Competition - Mergers and acquisitions in the airline industry help to reduce competition significantly. This helps airlines to achieve higher operating margins. On the other hand, passengers may face higher airfares
Passenger Benefits -Passengers, who are enlisted for frequent-travel schemes and other similar ones, will have higher mileage pints

5. IMPACTS OF MERGER / ACQUISITION
The major concerns that airline employees are faced with in case of mergers and acquisitions are :
Layoffs - Mergers and acquisitions in most cases are accompanied by layoffs due to redundancy
Salary concerns
Pensions and other benefits
Strife - Airline mergers and acquisitions are often accompanied by strife related to seniority issues, new work rules, etc

6. MERGER vs ALLIANCE ALLIANCE
are cooperation agreements by which airlines integrate their networks and services and operate as if they were a single entity while retaining their each corporate identities
Cooperation agreements of this kind may comprise several or all of the following fields of cooperation: code sharing; revenue and cost sharing; joint pricing; coordination of capacities; route and schedule planning; coordination of marketing, advertising, sales and distribution networks; coordination of travel agents and other commissions; branding/co-branding; integration and development of information systems; information technologies and distribution channels; coordination of frequent flyer programs; sharing of facilities and services at airports

7. Air Berlin Air New Zealand 2006 - Acquired dba. 2007 - Acquired LTU.
Acquired LGW.
20xx - Acquired flyNiki.
20xx - Acquired HLX.
20xx - Acquired Belair.
Air New Zealand
Acquired Ansett Australia, Ansett collapsed, proving to be more of a drain than asset.

8. Air Canada Air France Air Jamaica 2000 - Acquired Canadian Airlines.
Merged with KLM Royal Dutch Airlines, changing the company name to Air France KLM, although the two airlines still operate as separate airlines.
Air Jamaica
Acquired by Caribbean Airlines

9. Air West AirTran Airways
Pacific Air Lines (originally Southwest Airways), Bonanza Air Lines, and West Coast Airlines merged to form Air West
Howard Hughes purchased Air West and renamed it Hughes Airwest
AirTran Airways
Bought by ValuJet Airlines, kept the AirTran name
Bought by Southwest Airlines, will retain the Southwest name.

10. Alaska Airlines America West Airlines
Acquired Jet America Airlines.
Acquired Horizon Air, which continues to operate as a separate airline.
America West Airlines
Acquired bankrupt US Airways, retaining the US Airways name.

11. American Airlines Canadian Airlines
Acquired Trans Caribbean Airways
Acquired Air California
Acquired Reno Air
Acquired TWA
Canadian Airlines
Formed by merger of Canadian Pacific Airlines, Eastern Provincial Airways, Nordair, and Pacific Western Airlines.
Acquired by Air Canada.

12. Caribbean Airlines Cathay Pacific Cimber Air
Acquired Air Jamaica.
Cathay Pacific
Acquired full ownership over Dragonair, which continues to operate as a separate airline.
Cimber Air
Acquired bankrupt Sterling to form Cimber Sterling.

13. Continental Airlines - Texas International - Frontier - People Express
- New York Air
Merged with United Airlines. Overtook Delta as the world's largest airline by passenger traffic in 2011, kept United name.

14. Delta Air Lines 1924 - Started as Huff Daland Dusters
Huff Daland Dusters was purchased by C.E. Woolman and renamed Delta Air Service after the Mississippi Delta
Purchased the Chicago and Southern Air Lines, and flew under the name Delta C&S for the next two years
Purchased Northeast Airlines
Established the Delta Connection (ASA, Comair, Skywest, ...)
Merged with Western Airlines
Purchase of Pan Am's European routes, and acquired Pan Am's shuttle, forming what is today Delta Shuttle
Delta Express began service, ended November 2003
Song began service, ended May 2006
Merged with Northwest Airlines. Became the world's largest carrier by passenger traffic in 2008, kept Delta name

15. KLM Royal Dutch Airlines
Eastern Airlines
1991 -ceased operation while in bankruptcy
Hughes Airwest
Howard Hughes purchased Air West and renamed it Hughes Airwest
Republic Airlines bought out Hughes Airwest
KLM Royal Dutch Airlines
Acquired by Air France, which changed its company name to Air France KLM, although the two airlines still operate as separate airlines.

16. LOT Polish Airlines LAN National Airlines Northeast Airlines
Aero and Aerolot merged to form LOT Polish Airlines
LAN
LAN and TAM merged to form LATAM
National Airlines
Merged with Pan Am
Northeast Airlines
Delta purchased Northeast Airlines

17. Northwest Airlines
Founded by Col. Lewis Patenaude, under the name Northwest Airways
Began flying passengers
With its new routes to the far east, re-branded itself as Northwest Orient Airlines
Purchased Republic Airlines, and dropped the word Orient from its brand name
Merged with Delta. Became world's largest airline by passenger traffic in 2008 under the Delta name.

18. Ozark Airlines Pan Am Republic Airlines 1986 - Purchased by TWA
Merged with National Airlines
Delta Air Lines purchased Pan Am's European routes, and acquired Pan Am's Shuttle
Republic Airlines
Formed by the merger of North Central Airlines and Southern Airways
Bought out Hughes Airwest
Northwest purchased Republic Airlines

19. Republic Airways Holdings
Acquired Shuttle America.
Acquired Midwest Airlines.
Acquired Frontier Airlines.
SkyWest Airlines
- Acquired Atlantic Southeast Airlines
Southwest Airlines
Acquired Muse Air
Acquired Morris Air
Acquired certain assets of bankrupt ATA Airlines
Acquired AirTran and will retain name Southwest Airlines

20. Trans World Airlines United Airlines US Airways
Purchased Ozark Airlines
American Airlines purchased TWA, retained name American Airlines
United Airlines
- Merged with Capital
Merged with Continental Airlines. Surpassed Delta as the world's largest carrier by passenger traffic. Kept United name
US Airways
- Started as All American Aviation Company, renamed All American Airlines and then Allegheny Airlines
- Purchased Lake Central Airlines and Mohawk Airlines
- Changed name to USAir
- Purchased Pacific Southwest Airlines and Piedmont Airlines
- Changed name to US Airways
Bought out by America West, keeping the US Airways brand

21. Western Airlines
First incorporated as Western Air Express by Harris Hanshue
Western's first flight took place
Reincorporated as Western Air Express Corp.
Purchased Standard Airlines (subsidiary of Aero Corp. of Ca. founded in 1926). WAE with Fokker aircraft merged with Transcontinental Air Transport to form TWA.
Western Air Express broke off from TWA and briefly changed its name to General Air Lines, returning to the name Western Air Express after several months
Western Air Express changed its name to Western Air Lines, which was later altered to Western Airlines
merged with Pacific Northern Airlines
Delta merged with Western Airlines (kept Delta name)

22. Lufthansa - Purchased Austrian Airlines - Purchased Swiss Air
- Purchased BMI
- Purchased 19% of Jetblue