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Hello..
I was just wondering something about airlines that 'disappear' a few days ago when I read the 'Goodbye, TWA' article in Airways this month, and not long before reading that article, a newspaper here had a story about about the trouble with Canadian and Air Canada's merger. Are most mergers between airlines that messy? Seems like the employees of the company getting swallowed up get screwed :|
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Early in the industry, say more than 15 to 20 years ago airlines would merge to form a stronger company. There was a tremendous amount of this to build the current legacy carriers. Giants like AMR or United were born out of several smaller airlines. It was a way to grow. Sometimes it was painful for the employees of the acquired company, but for the most part it didn't lead to layoffs. (I'm intentionally not including the Lorenzo tatics as they were in a league of their own).
More recently (since deregulation) we are looking at more of an asset acquisition of distressed companies. Usually a financially stronger company picking up all or parts of a bankrupt or distressed company. Delta/ Pan Am, AMR/TWA etc Employees got nailled to the wall and some lost their jobs in these deals.
Looking forward we will see the show being run by the creditors, more or less, as there are no financially independent legacy carriers any more. Creditors will look to see how they can sweep up the pieces of a wrecked industry and put them together to make cash flow positive companies that can make at least some of their old debt good. Layoffs will be part of the deal as the industry will need to shed capacity and hubs to get to a sustainable form. Payand benefit cuts will be steep and long lasting.
Also since the names of legacy carriers don't carry the cachet they once did, you will likely see most of them disappear altogether in favor of a "new brand".
Dave