Issue I

14/02/2013

American Airlines And US Airways Announce World`s Largest Air Carrier Merger

American Airlines and US Airways, as they announced an $ 11 billion merger to create the world`s largest air carrier after directors approved the deal.

Before the announcement the boards met separately and approved the merger that has been in the works, when creditors  forced American to choose between a merger and bankruptey, according to sources close to negotiations.

14/08/2013

US Justice Dept Lawsuit Blocks World`s Biggest Air Carrier

The deal with this merger, would cost consumers hundreds of millions of dollars a year in higher fares, US authorities warm.

The lawsuit, filed by the Justice Department and joined by attorney generals of six states and the District of Columbia, said they were alarmed that the potential deal would create a monopoly in us commercial aviation, where 4 major carriers would control more than 80% of the market.

SUMMARY : As the conclusion, we thinks they must merger because many advantages they can have it than a disadvantages.

Advantages when they merger:

-Be a largest air carrier in the world.

-Good relationship between two company.

-Can share idea for always in top place for air carrier.

-Share risk and reward.

-Improve their services.

Reasons for growth in air cargo:

-Deregulation and liberalization of air cargo industry.

-Global inter depence helped by world trade agreement.

-International production and sales of goods.

-New inventory management concept such as JIT.

-The vast development of high value and limited consumable commodities.