airline航空公司收购合并案例分析

Connecting with One World - Airlines,Team Members: Hongru Wang Yunsheng Yang Chengran Wang Zhuoran Zhou Shengjie Li Min Li,Direct Investment and Collaborative Strategies,Q1,Significant Mergers in the IndustryDelta + Northwest Airlines (2008)Sky team The acquisition proved to be fruitful, catapulting Delta to the title of largest airline and generating significant cost savings for both the airlines.,Q1,United Airlines + Continental Airlines (May 2010)Star Alliance This merger usurps Delta to become the new largest airline, positioning the airlines for global and domestic competition and improved service and performance.,Q1,M&A Advantage1. Cost reduction and revenue increase2. Resources pooling3. Service optimization,Q1,M&A Disadvantage1. Layoffs 2. Reduce competition significantly and market monopolies3. Often accompanied by conflict related to seniority issues, new work rules, etc.,Q1,Non-Equity Alliance Advantage1. Attaining the technical efficiencies of lower production costs/ better service2. Reach of Seamless Service Networks and increase load factors3. Enhanced frequent flyer programs4. Share information (Code-sharing),Q1,Non-equity alliance Disadvantage Too broad setting of objectives/ Incongruent objectives Asymmetry of partners, in the size Asymmetry of benefits versus expectations Differing product/ service standards Lack of Exclusivity,Q2,Some airlines have survived without extensive international connections. Can they continue this strategy? When there is sufficient traffic on the city pairs that a route serves, there is little need to have feeder or connecting routes for an airline to be profitable. Without the need for hubs to make connections, some airlines can operate in smaller but closer-to-downtown airports. They can avoid the costs associated with the transfer and the payment of overnight expenses to passengers.,Q2,Some airlines have survived without extensive international connections. Can they continue this strategy? They may be able to overcome any disadvantages from small-scale operations by targeting their promotion to regional and niche groups and by running low-cost operations that charge low fares. Conventional wisdom would suggest they can in fact survive in their present operational mode and that attempts to expand and modify their operations might make them more vulnerable.,Q3,Why should an airline not be able to establish service anywhere in the world simply by demonstrating that it can and will comply with the local labor and business laws of the host country?,Considering either the international or simply the domestic environmentA major consideration is whether economic interests in the airline industry are better served through regulation via the market.,Why regulate domestic airline industries.,Q3,Q3,Another major consideration deals with the political dimensions of the question. Because most governments see airlines as a key national industry, they oppose giving foreign carriers access to domestic routes on grounds of both national security and consumer welfare. Countries believe they can save money by maintaining small air forces and relying on domestic airlines in times of unusual air transport needs. For example, U.S government used U.S commercial carriers to help carry troops to and from Iraq.As well, airlines are a source of national pride, and aircraft symbolize a countrys sovereignty and technical competence.,Q4,The Foreign Ownership Restrictions on AirlinesThe United States and Canada restrict foreign ownership to 25%The EU has taken steps to liberalize within Europe and sets a 49% limit on non-European ownership.In Australia and New Zealand, foreigners are permitted to acquire up to 49% of the equity of an international carrier and up to 100% of a domestic airline.,Q4,Reasons1. We need US carriers for national securityUS believe they can save money by maintaining small air forces and relying on domestic airlines in times of unusual air transport needs. Argument:It would be cheaper and better if the US government simply tendered for charters on the open market,Q4,Reasons2. Foreign Airlines Dont Have the Same Security StandardsUS have worried about protecting their airspace for security reasons. Argument:A US airline owned by foreign investors is operated by US permanent residents and citizens, and following all US standards and procedures, subject to all US regulations and controls.,Q4,Reasons3. Foreign Airlines Would Take Away Jobs from AmericansThe desire to maintain existing jobs threatened by foreign competition is probably the single most important source of todays protectionist policies Argument:All US carriers have to employ either lawfully admitted foreign nationals on special work visas, or US permanent residents, and indeed, for some jobs, they can only employ full US citizens,Q4,Reasons4. A Foreign Airline would cherry pick only the Profitable RoutesThe foreign owned airline would only fly on the easy major routes that any airline can make a profit on Argument:The ownership of a new startup airline again makes no substantial difference to the external marketplace factors that influence all airlines and their present operations,Q4,Reasons5. Profits will be Taken OffshoreAllowing foreigners to own US airlines means that theyll take all the profits offshore and somehow harm the US economy in the process Argument:No US carrier is making so much profit that transferring some share of it offshore would harm the economy,RealityThe U.S. law limiting foreign ownership of U.S. airlines is considered an anachronism because people desire to benefit from more competition, lower fares, better service, and no more taxpayer bailouts of old, irrelevant airlines that should be allowed to quietly expire and disappear,Q4,Q5,Q5,Q5,If a few large airlines or networks come to dominate global air service More convenience Risk reduction Lower cost,Q5,If a few large airlines or networks come to dominate global air service Under oligopoly conditions,High prices Poor service No special offer,Q6 The Airline Bailout,Many airlines have recently been no more than marginally profitable.,Q6 The Airline Bailout,Airline is a vital industry.Facilitate economic growth, world trade, international investment and tourismGovernment intervention to guarantee their survivalAirports and air traffic control infrastructureEmployee training for pilots, mechanics, etc.Protection from foreign competitionCredit instruments to air carriersDeferred taxation,Q7,Two-Stage Model of Airlines Game,Cost & Revenue Sharing Method,Q7,Contribution Approach,Cost & Revenue Sharing Method,The contribution approach is used to arrive at a profit sharing percentage for each of the airlines. Since the parties may contribute labour, management and capital to the joint venture, it is reasonable to divide the income or expenses based on the relative contributions of each party. The underlying principal is that returns are to be shared in the same proportion as the costs and capital are contributed.,Q7,Valuing Contribution,Cost & Revenue Sharing Method,Available Seat Miles (ASMs)A common industry measurement of airline output that refers to one aircraft seat flown one mile, whether occupied or not. An aircraft with 100 passenger seats, flown a distance of 100 miles, generates 10,000 available seat