Airline Mergers And You: Understanding The Airline Business
The constant alphabet soup of business mergers throughout the world can be blinding to even the most savvy observer of the news. However, few people think of the impact of these mergers upon their lives until their employer merges with another. One of the most active merger markets in the world today is in the airline industry. Major "legacy" airlines are in various stages of financial flux, with many of them trying to find a competitive advantage over other airlines. Regional carriers and budget airlines are offering cheaper tickets, better seating areas, and a higher level of service by keeping overhead costs down. The new fad in the airline industry is for larger national and international airlines to attempt buy outs of these smaller airlines to put their brand name on a better quality product.
Airline mergers have a number of effects on the flight professionals for both the major airlines and regional carriers. The most important effect of airline mergers is on the number of jobs available to airline professionals on both sides of the business arrangement. A recent example of a failed merger between national carrier Air Tran and Milwaukee-based regional carrier Midwest Express demonstrates the public concern over jobs due to airline mergers. Air Tran has made overtures to Midwest though the small but successful airline wants to maintain its Midwest roots and its high level of service. The main concern from employees interviewed in the midst of merger discussions in the media was how many jobs would be lost due to redundant personnel from both companies.
Other concerns should be considered by flight professionals when thinking about airline mergers. The level of services in a merged airline may differ from that of a smaller airline, influencing the daily lives of flight crews and other airline personnel. For example, a merged airline that wants their pilots more involved in pointing out sights and landmarks while in air may be doing more work on their presentation skills than normal. As well, attendants often have to get used to new company policies on food service and amenities which can differ greatly from their previous employer's policy. Finally, the flight crew in general has to get used to new personnel from other airlines as part of a merged staff. Airlines who merge commit themselves to making the transition process as smooth as possible. However, flight professionals need to consider all of these points early in their career to adjust to the industry's volatile nature.
Sara Evans is the Managing Director of wynnwith aviation support, the leader provider of Aviation jobs.
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