Report Examines Benefits of Mega-Mergers in US Airline Industry

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Information about Report Examines Benefits of Mega-Mergers in US Airline Industry
Business & Mgmt

Published on March 15, 2014

Author: manuelriverojr

Source: slideshare.net

Description

Experienced business executive Manuel Rivero, Jr., lives and works in the greater Miami, Florida, area. Manuel Rivero, Jr., currently holds responsibilities as managing director and vice president of Airstream Services Corporation, a financial and operations consulting firm serving the airline industry.

By Manuel Rivero Jr.

 Experienced business executive Manuel Rivero, Jr., lives and works in the greater Miami, Florida, area. Manuel Rivero, Jr., currently holds responsibilities as managing director and vice president of Airstream Services Corporation, a financial and operations consulting firm serving the airline industry.

 In the wake of 2013’s merger between airline giants American Airlines, Inc., and US Airways, PricewaterhouseCoopers (PwC) released an update to its aviation industry report titled “Aviation Perspectives: The Impact of Mega-Mergers, A New Foundation for the US Airline Industry.” According to the report, one catalyst of major airline company mergers over the past few years has been the expansion of low-cost carriers (LCCs) into domestic airline routes. LCCs have been expanding faster than traditional careers; they are responsible for 30 percent of domestic airline traffic. With the divestiture of some 170 takeoff and landing gates following the American Airlines-US Airways merger, LCCs will likely benefit the most.

 “Aviation Perspectives” also pointed to increased operational efficiencies due to airline consolidation. From 2008 to 2013, US airlines saw decreases in flight cancellations and arrival and departure delays and fewer mishandled baggage incidents.

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