What is the recent news from this major airline, you might
be asking?
The last time everyone heard about them, US Airways wings
planned to do a major merger. In fact, if it will happen, it will be the
biggest merger in history. The proposed merger came from American Airlines
company.
When both (and if) companies will merge, they will form a
biggest airline company in the world. But so far this isn’t happening.
US Airways
wings were sued by the government.
When government heard about the merger they opened a case
against it. They told the public that the merger will actually hurt consumers,
because this will be the biggest airline company in the world and thus they
will be able to greatly influence flight prices. It will be almost like
monopoly, especially in US market. So they are worried about it.
US Airways wings and American Airlines on the other hand are
heavily protesting. They will be defending their case in November, 2013. They
want to prove that the merger will actually do good for consumers and both
companies.
In the past few years their financial situation was
incredibly bad. Two times they were almost bankrupt (filed for bankruptcy two
times, but government helped them). And they are not doing good at the moment.
Still losing money. So they desperately need this merger to happen.
It will allow US Airways wings to get cheaper prices on
flights. So far this company is incredibly expensive, despite their bad
customer service. They have the best baggage handling system though.
But they are continuously improving, so it should be better
and better in the near future (if they will not go out of business before
that). Plus American Airlines will help greatly.
The biggest stake in the company will belong to American
Airlines and it’s something like 3 to 1. US Airways wings just own 25% or so.
The new company headquarters will be located in Texas. That’s where American
Airlines headquarters are.
So everyone is waiting for the court. Who will win? Both
parties have gathered huge amount of witnesses. For government there will be 12
witnesses and 3 experts and for both airline companies CEOs and top executives
will act as witnesses.