How can an airlines merger with another airline create economies of scale?

Question

for example, easyjets merger with go-fly.

Answer 1

Mergers almost never work. The two soon go out of business and their assets all get sold to a new conglomerate of investors for another short lived run.

Answer 2

properly ATA isn't in all probability a important airline, so as that only is going to show that the financial equipment isn't in hassle as plenty through fact the administration screwed up on the subject of ATA. regardless of this, it nonetheless a technique or the different manages to impression opposition in a micro point so ultimately it is the purchaser who could doubtlessly get screwed yet no longer the Airline agencies. The financial equipment's high-quality. bear in techniques, this replaced into the question they asked whilst Pan AM declared financial ruin, yet interior the long-term the marketplace replaced into all peachy and on an uptrend for the long term investor.

Answer 3

So jobs will be cut because of two different airline's same department merge into one, cut some of the overlap flights, and improve efficiency using both airline's resource. Like recently Cathay Pacific merge with Dragonair. Cathay can use Dragonair's large Chinese network to feed into Cathay's international network to fill more of the seats into both airline because of the more convenience and create competitive price in the region. Also more profitable routes will be open because of the big Chinese market and using each other's network to feed passengers in.

Answer 4

they say that cuts down on airfare, but it also puts people out of work. i don't see how this good for anybody , but the big shots. the rich gets richer and the ti cal down effect bare beneficial 2 the average person. so my conclusion it harms the economy.

Answer 5

They can both use the same reservation system software (very expensive to build and maintain). They can increase their leverage on suppliers when buying everything from food to new airplanes.

Answer 6

Layoffs, few employees. Certain costs fixed.