Airline航空公司收购合并案例分析

1、Connecting with One World - AirlinesTeam Members: Hongru Wang Yunsheng Yang Chengran Wang Zhuoran Zhou Shengjie Li Min LiDirect Investment and Collaborative Strategies1 Q1Significant Mergers in the IndustryDelta + Northwest Airlines (2008)Sky team The acquisition proved to be fruitful, catapulting D

2、elta 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

3、service and performance. Q1M&A Advantage1. Cost reduction and revenue increase2. Resources pooling3. Service optimization Q1M&A Disadvantage1. Layoffs 2. Reduce competition significantly and market monopolies3. Often accompanied by conflict related to seniority issues, new work rules, etc. Q1Non-Equ

4、ity 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) Q1Non-equity alliance Disadvantage Too broad setting of objecti

5、ves/ Incongruent objectives Asymmetry of partners, in the size Asymmetry of benefits versus expectations Differing product/ service standards Lack of Exclusivity Q2Some airlines have survived without extensive international connections. Can they continue this strategy? When there is sufficient traff

6、ic 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 transf

7、er and the payment of overnight expenses to passengers. Q2Some 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

8、 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. Q3Why should an airline not be able to establish service anywhe

9、re 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

10、regulation via the market. Why regulate domestic airline industries. Q311 Q3Another 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 b

11、oth 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

12、 are a source of national pride, and aircraft symbolize a countrys sovereignty and technical competence. Q4The 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-Europe

13、an 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. Q4Reasons1. We need US carriers for national securityUS believe they can save money by maintaining small air forces and relying on

14、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 Q4Reasons2. Foreign Airlines Dont Have the Same Security StandardsUS have worried about protecting their airspace for security reaso

15、ns. 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. Q4Reasons3. Foreign Airlines Would Take Away Jobs from AmericansThe desire to maintain existing jobs thr

16、eatened 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 ci

17、tizens Q4Reasons4. 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 f

18、actors that influence all airlines and their present operations Q4Reasons5. 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 transfe

19、rring some share of it offshore would harm the economyRealityThe 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 shoul

20、d 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 N

21、o special offer Q6 The Airline BailoutMany airlines have recently been no more than marginally profitable. Q6 The Airline BailoutAirline is a vital industry.Facilitate economic growth, world trade, international investment and tourismGovernment intervention to guarantee their survivalAirports and ai

22、r traffic control infrastructureEmployee training for pilots, mechanics, etc.Protection from foreign competitionCredit instruments to air carriersDeferred taxation Q7Two-Stage Model of Airlines Game Cost & Revenue Sharing Method Q7Contribution Approach Cost & Revenue Sharing Method The contribution

23、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 t

24、hat returns are to be shared in the same proportion as the costs and capital are contributed. Q7Valuing 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 m