Publications
Publications
- January 2017 (Revised December 2017)
- HBS Case Collection
Merging American Airlines and US Airways (A)
By: David G. Fubini, David A. Garvin and Carin-Isabel Knoop
Abstract
In February 2013, US Airways announced that it would merge with American Airlines to create the world’s largest airline. Doug Parker, the CEO of US Airways, would become CEO of the new American Airlines Group (AAL). The case describes a number of critical decisions Parker made and actions that he took in the course of the acquisition integration process. All focused on how best to combine the two airlines’ core systems and operating processes as well as the appropriate scope and speed of strategic changes. Now, Parker must decide on the composition of AAL’s senior executive team. Should Parker select a team dominated by US Airways executives with whom he has successfully worked for decades? Or should he establish a new team with roughly equal representation from both airlines? Parker’s choice will send important signals to employees about the extent to which the transaction will be viewed as a merger of equals or as a takeover by US Airways.
Keywords
Airlines; Merger; Takeover; Integration Strategy; Merger Integration; Mergers and Acquisitions; Decision Making; Governance; Management Teams; Operations; Organizational Culture; Air Transportation Industry; United States
Citation
Fubini, David G., David A. Garvin, and Carin-Isabel Knoop. "Merging American Airlines and US Airways (A)." Harvard Business School Case 417-054, January 2017. (Revised December 2017.)