Cost and revenue synergies in airline mergers – Examining geographical differences

Maximilian Schosser and Andreas Wittmer

Journal of Air Transport Management, 2015, vol. 47, issue C, 142-153

Abstract: Deregulation, privatization and shifting demand patterns in the airline industry, combined with the emergence of low-cost airlines and rising fuel prices have increased the competitive pressure on legacy airlines. Since alliances do not deliver sufficient benefits to counterbalance these trends, many airlines have engaged in mergers to seek for additional cost and revenue synergies. An extent body of literature investigates the synergy potential in mergers and alliances, but there is no study on how synergies differ among mergers and what potential influence factors cause these differences. This paper aims at explaining differences in synergy estimates and realized synergies in recent airline mergers and places a special focus on geographical influence factors.

Keywords: Airline merger; Mergers & acquisitions; Synergies; Cost synergies; Revenue synergies; Merger and alliance in air transport; Airline strategy; Management and operations; Aviation case study (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jaitra:v:47:y:2015:i:c:p:142-153

DOI: 10.1016/j.jairtraman.2015.05.004

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