American Airlines and US Airway’s Merger Essay Example for Free

American Airlines and US Airway’s Merger Essay Abstract American Airlines has suffered tremendous profit losses over the last few years. The losses have been so great that the company filed Chapter 11 bankruptcy. The news for the Chapter 11 bankruptcy protection was a shock to many, considering the fact that they had enough money to operate and cover their losses through the following year. The merger indeed was great decision on behalf of American Airlines. The merger itself was questionable. The Department of Justice filed a lawsuit against regarding concerns that it could raise prices for consumers. A settlement was reached and the world largest airline has been formed. American Airlines has been suffering for many years. The company has suffered more losses than profits. Jobs have been cut; benefits have been scaled back, and the pilots of American Airlines are paid a lot lower salaries than their competitors. Many of them have been furloughed. All of these and many other factors have contributed to American deciding to create the world largest airlines with US Airways. In this essay I will discuss the circumstances that resulted in the merger, assess the significant positive (or negative) effects of the merger, and examine the organizational structure that has resulted from the merger. American Airlines filed for bankruptcy in November 2011. According to an interview with Richard Quest of CNN, Thomas Horton the new CEO of American Airlines stated that the company was forced into bankruptcy because of the cost disadvantages it faced compared to it’s competitors that had already gone through a bankruptcy. The news came as a shock to many. The company had enough money  to sustain the losses that it may incur through the next year. Although the company had the money to operate, the company still decided to go through with filing for bankruptcy (Isidore Ellis, 2011). At one time American was the world largest carrier, it had dropped to third in the recent years. The company has reported only one quarter where a profit was made since 2007, and lost 4.8 billion over those three and a half years. The company was projected to continue to suffer losses. Now that the merger has been approved, American will be able to get themselves out of their Chapter 11 bankruptcy protection (Isidore Ellis, 2011). Now that the merger is complete, the new American Airlines has ordered over 600 new aircrafts that are updated and more modern. The new aircrafts will allow them to compete with their competitors. In the past they have lost a great deal of money from their business class travelers due to their lack of the amenities that their competitors carry on their aircrafts (American, US Airways reach merger deal., 2013). The two jo ining airlines will offer over 6,700 daily flights to 336 destinations in 56 countries. The merger will not distress any of the hubs presently served by American Airlines and US Airways. American Airlines has been in bankruptcy for a little over a year, and the merger will be effected pursuant to a plan of reorganization under Chapter 11. The combination of American and US Airways brings together two highly complementary networks with access to the best destinations around the globe and gives us a strong platform to provide our customers the most connected, comfortable travel experience available, Horton said The operational and financial strength of the combined airline is expected to enable continued investment in new products and technologies and will create exciting new opportunities for our people, even as we deliver strong cash flow and sustainable profitability. (American, US Airways reach merger deal., 2013). The merger with Us Airways allowed American Airlines to come out of the Chapter 11 bankruptcy in December. Being able to do so was the first time that a ma jor airline has been able to satisfy a bankruptcy with a return on equity for its shareholders. By deciding to partner with a smaller, but stable US Airways, the company was able to raise the value of the combine stock. Pursuant to the plan of reorganization, so-called double-dip, single-dip, and intercompany claims were settled through a delivery process which distributed the proceeds of America Airlines estate based on the  trading price of the new companys common shares. This quick fix solution lessens the opportunity of appraisal disputes by guaranteeing creditors got a current market value. When it was all said and done, American Airlines creditors, including its unsecured creditors were given payment in full. For the first time in a major airline reformation, shareholders were able to accept a return on their equity. The approved stock exchange merger left American Airlines shareholders with 72% of the new company and the US Airway investors with the lingering 28%.US Airways decided to do what most company who are going through a merger wouldn’t. They negotiated with American Airlines unions before finalizing the merger. This established a foundation of a cooperative negotiating agreement for the new company, so that labor disagreements would not disrupt or lengthen the merger development. Following numerous noteworthy airline merges it was predictable that the formation of one of the worlds largest carriers would raise some anti-trust hurd les. The first curtailed from the US government. The airline seized a proactive tactic, agreeing to surrender some of it apertures at airports around the US, leading to court approval of the merger (Thomas, 2014). Although the two companies have merged and are legally one entity, they have both agreed to operate separately until they can integrate both systems successfully. As with any merger, both sides will suffer losses of their employees. Majority of the top leadership positions will be held by US Airways top executives in the new American Airlines. US Airways CEO Doug Parker will head the merged carrier. Of the top eight executive positions, five of those positions come from the US Airways side. American CEO Tom Horton will be the chairman of the board, and will continue on through until the first meeting of the new board next year. Parker will keep the executives that he is more familiar with. The new leadership team includes US Airways President Scott Kirby and others who have worked alongside Parker for several years (American and US Airways name merged airline leadership, 2013). American Airlines has suffered tremendously over the last few years. Us Airway which is a smaller company, was in a better position financially than American. Although Us Airway was more stable, they didn’t have access to many of the locations that American Airlines did. The merger was a great idea for both. American was able to get out of their Chapter 11 bankruptcy protection earlier than anticipated. They have switched over from the Star  Alliance and move to One world global alliance. The new company now has over a 100,000 employees worldwide. Nothing but positive results seems to be coming from the merger of the two. In the beginning, the merger was questionable, and the Justice Department along with six other states filed a lawsuit against the company. The reason for the lawsuit is that they were in fear of the creation of the world largest airline raising prices on travelers. The slight raise in ticket sales, fees for flight changes, check bags, would be detrimental to consumers. American Airlines and US Airways were able to settle the suit and bring everyone to ease. In summary, the merger has run smoothly thus so far and according to plan. Currently both companies are operating individually although they are legally identified as one entity. The companies are working to collaborate their systems together as well. At the point in time, they are honoring each other’s flier miles and plan. Some of them have been eliminated to coincide with the polices of the company. American Airlines decided to merge with Us Airways to regain its place as the world largest airline. The reason for the merger has been negative on American’s side, but will benefit their company in the long run. In my essay, I have attempted to explain In the circumstances that resulted in the merger, assess the significant positive (or negative) effects of the merger, and examine the organizational structure that has resulted from the merger.

Politics of the people Essay -- Analysis, South American Politics

Politics of the People touches on a multitude of topics discussed this term. The article brings to light the issues in South America. Specifically in the Amazon, surrounding big oil companies, the destruction of land and environment, and the destitution of the people of Ecuador and how the people and NGO's have taken action to fight it. In this territory of the Amazon according to Judith Kimerling, â€Å"the oil spills and contamination of this region of Ecuador equal or supersedes those of the 1989 Alaskan Exxon Valdez oil spill.†(81). What this means is that this area has been polluted greatly and since 1993 the inhabitants of this territory have been fighting big oil. The land is unusable with that level of pollution. This land has been taken over by OCP's which are large pipelines running through the land to transport oil, this is a fantastic example of the industrialization of a 3rd world country. An NGO by the name of Accion Ecologica was one of the groups that early on spoke out in recognition of the devastation happening to the land. The devastation of the land in Ecuador reminds me of a film about fracking I saw and how the people who lived on the land were the first to notice the problems with big companies taking over the natural resources. In the article they spoke of â€Å"large flames that soar through the sky, creating an immense heat and loud, searing noises.†(82). This is just one example of the inconvenience of the developing oil company in the Territory. Additionally the people live on this land have been speaking out and noting they are having health problems and that it is spreading to the animals, one man's home was destroyed by an explosion of a pipeline behind his home (82). Due to these extreme concerns ... ...with. Lastly the companies that go to these lesser countries to mass produce whether it be oil or denim do so because the laws are less strict and they see a loop-hole around taxes and fees and environmental laws. In the Texaco/Chevron case â€Å"Chevron's attorney argues that the local communities should blame their government†(90). I think that the people are already blaming their government but the at the end of the day the oil companies are to blame too. The goal of this whole ordeal was to â€Å"raise awareness among its partners about the struggles of other around the globe† (92). I would deem their goal as successful, and as oil companies continue to make mistakes whether it be bypassing human rights and environmental rights knowingly or just have neglected equipment and back up plans in case of a spill like in the gulf coast, the people of the world are aware now. Politics of the people Essay -- Analysis, South American Politics Politics of the People touches on a multitude of topics discussed this term. The article brings to light the issues in South America. Specifically in the Amazon, surrounding big oil companies, the destruction of land and environment, and the destitution of the people of Ecuador and how the people and NGO's have taken action to fight it. In this territory of the Amazon according to Judith Kimerling, â€Å"the oil spills and contamination of this region of Ecuador equal or supersedes those of the 1989 Alaskan Exxon Valdez oil spill.†(81). What this means is that this area has been polluted greatly and since 1993 the inhabitants of this territory have been fighting big oil. The land is unusable with that level of pollution. This land has been taken over by OCP's which are large pipelines running through the land to transport oil, this is a fantastic example of the industrialization of a 3rd world country. An NGO by the name of Accion Ecologica was one of the groups that early on spoke out in recognition of the devastation happening to the land. The devastation of the land in Ecuador reminds me of a film about fracking I saw and how the people who lived on the land were the first to notice the problems with big companies taking over the natural resources. In the article they spoke of â€Å"large flames that soar through the sky, creating an immense heat and loud, searing noises.†(82). This is just one example of the inconvenience of the developing oil company in the Territory. Additionally the people live on this land have been speaking out and noting they are having health problems and that it is spreading to the animals, one man's home was destroyed by an explosion of a pipeline behind his home (82). Due to these extreme concerns ... ...with. Lastly the companies that go to these lesser countries to mass produce whether it be oil or denim do so because the laws are less strict and they see a loop-hole around taxes and fees and environmental laws. In the Texaco/Chevron case â€Å"Chevron's attorney argues that the local communities should blame their government†(90). I think that the people are already blaming their government but the at the end of the day the oil companies are to blame too. The goal of this whole ordeal was to â€Å"raise awareness among its partners about the struggles of other around the globe† (92). I would deem their goal as successful, and as oil companies continue to make mistakes whether it be bypassing human rights and environmental rights knowingly or just have neglected equipment and back up plans in case of a spill like in the gulf coast, the people of the world are aware now.

Bantay-Dagat Program (Unfinished)

Introduction Our environment is our primary concern today, for the environment that have nurtured us and provided us with everything that we need for sustenance is now in peril. Pollution, destruction of forests, extinction of floral and faunal species, coral bleaching, loss of arable due to erosion – all of these, and more, are the products of man’s destructive activities that continually threaten our fragile environment. Furthermore, the constant ruining of the environment often creates catastrophes that can, and will, endanger our very own lives.Therefore, we must conserve, protect, and save our environment for environment’s sake, for our children’s sake, and for our sake. In connection, we, the students of the University of the Philippines in the Visayas of the NSTP-CWTS program AY 2012-2013 heed to the call of the world for a new wave of young people who can bring change towards their fellowmen in the context of environmentalism, envisioned to do our part in the fruitful conservation of Mother Nature.This plan of action of ours is our own way as students to meet local and national conservation efforts towards a more sustainable development of our beloved country. Description The Bantay Dagat Project as proposed by the National Service Training Program (NSTP) officers is a program in which the beautification of native beaches and awakening of the community’s awareness regarding proper waste disposal are accentuated as the principal goals.Background The beaches of Brgy. Santo Nino Sur are said to be one of the best beaches in the province of Iloilo, visited annually by many local and foreign tourists alike. However, decades of human occupation have tarnished the beauty of the site, and is now littered with a lot of garbage. There are lot of floating debris in the sea, and the coast is strewn with many unwanted materials, suggesting years of uncareful management of the area.

Matewan Essay - 1726 Words

Matewan The citizens of Matewan, a coal -mining town in West Virginia lived amidst a feudalistic class process. One may think of medieval times in connection with feudalism, but the film â€Å"Matewan† directed by John Sayles was based on historical events that took place in 1920. The feudal lord was not a European king, and the serfs were not farming his land. Nevertheless, feudalism existed in this southern town, as the workers did not have the ability to choose their employer. Unlike Capitalism, the members of Matewan could not go out into the free labor market and choose the businesses for which they wished to work. The Stone Mountain Coal Company made choice nonexistent and in doing so gained feudal power over the employees.†¦show more content†¦Due to the monopolistic control by the coal company, perfect competition didn’t exist in Matewan. Businesses were not competing to gain workers, as there was only one source of employment for the inhabitants. One member of the town said, â€Å"If you ain’t with the company, there ain’t no work.† Because of the lack of competition, the employer does not have the need to market their establishment to a potential workforce or maintain desirable working conditions. Poor working conditions are sometimes a characteristic of a feudalistic class process, but certainly not the main trait. The absence of choice is the focal point of feudalism. For example, The Jungle, by Upton Sinclair contains graphic descriptions of miserable working conditions in the meat packing industry. While the immigrants worked for a meager wage under hideous conditions and were often abused, the main character in the story had other options for employment within the town. Albeit, the other options may not have been desirable ones, but they existed. His ability to choose is what makes the class process in The Jungle capitalistic as opposed to the existence of feudalism in Matewan. The workers for the Stone Mountain Coal Company were not paid in currency that could be used outside of Matewan; they were paid in company script that could be used only in Stone Mountain owned establishments. By the time the company hadShow MoreRelated`` Storming Heaven `` As Well As By John Sayles s Movie, Matewan1534 Words   |  7 Pagesstill hold true. If you push people into an unpleasant enough position, eventually they are going to fight back. It is just our nature. Examples of this can be seen in Denise Giardina’s novel, Storming Heaven; as well as, in John Sayles’s movie, Matewan. Both plots tell stories of the Appalachian miners and their fights against the overwhelming coal companies. On the surface, we can see that the stories revolve around themes of injustice. The coal companies take everything they can from the minersRead More Matewan Essays1281 Words   |  6 PagesMatewan Ignorance promotes fear. The Stone Mountain Coal Company exploits the ignorance of its employees to maintain power in Matewan. Keeping Matewan’s residents fearful of their future, fearful of change and fearful for their lives, the Stone Mountain Coal Company retains absolute control over the town of Matewan. Controlling all four social and cultural processes at work in Matewan, the company is able to extract the fear, work, and â€Å"loyalty† they desire out of their workers. They areRead MoreEssay about Matewan1256 Words   |  6 PagesMatewan In the film, Matewan, director John Sayles paints a 1920’s picture of a small, West Virginia coal-mining town. Over the course of the film, this seemingly American Township reveals itself as the site of feudal hardship for its citizens. The Stone Mountain Coal Company was the sole employer in Matewan. The company’s laborers struggled for autonomy and for freedom from the company’s grasp. The ideal method for this achieving such autonomy was organization of a union. ThisRead MoreBattle of Blair Mountain1437 Words   |  6 Pagesask him to get out of the servants’ quarters.† Because of this cruel and spiteful method of prohibiting unionization, UMWA set up tent colonies to house the homeless miners and their families. On May 19, 1920, 12 Baldwin-Felts agents arrived in Matewan, including Lee Felts who met up with his brother Albert Felts who was already located in the area. The afternoon of their arrival, the Felts brothers along with 11 of their men headed to Stone Mountain Coal Company property and began evicting familiesRead MoreEssay on Matewan and Norma Rae922 Words   |  4 PagesMatewan and Norma Rae Theoretically, the characters of both Matewan, and Norma Rae take part in a capitalistic society. In both situations the people are partaking in a form of labor market, where they are selling their time and energy. However, the town of Matewan, governed by the Stone Mountain Coal Companies monopoly on the land and businesses, and isolated by distance and limited technology, as fallen into a feudalistic condition. Despite the fact that Norma Raes small hometown of AlabamaRead MoreEssay on The Economic Structure of Matewan1293 Words   |  6 PagesThe Economic Structure of Matewan The film Matewan, written and directed by John Sayles, depicts the small rural townof 1920s Mingo County, West Virginia as a society undergoing complete social unrest, a result of clashing ideals and economic systems. The film is an illustration of how different social systems come to be so intertwined that they cannot be defined independently of one another. Unfortunately for the people of Matewan, the feudalistic economic system imposed on them by theRead MoreMovie Reflection1301 Words   |  6 Pagesthis reflective paper, I will be talking about the two movies: Matewan and On the Waterfront. I will tell you how each of these movies made me feel while I was watching them. Also, I will talk about how they relate to our HR book. Another thing that I will mention are the different acts and how the outcomes would’ve been different if they would have been in act at this time. The first movie I will be talking about is Matewan. Matewan is a movie about the mines in Mingo County, WV. In the beginningRead More Norma Rae Essay1517 Words   |  7 Pagesenvironmental and cultural processes all played a part in the workers struggle to form an effective union. Unlike the film, Matewan, in which the coal miners worked under feudal control, the employees of the O.P. Henley Mill worked amidst a Capitalistic Economy. The key difference between the two, is that the inhabitants of the town of Matewan did not have other choices of employment and the characters in Norma Rae had the ability to go into the free labor market and be active participantsRead MoreAnalysis Of Watching John Sayles Film2695 Words   |  11 Pagesdisappointing to see how he abandons his community without even saying anything to them, which to me makes him selfish and a hypocrite for not staying true to his word of god. In the contrary, John Sayles illustrates a formalistic society in the film, Matewan. Matewan is a mining town in West Virginia controlled by the Stone Mountain Cole Company. The company creates much of its labor opportunity in town, providing positions for inadequate laborers as miners so like that they did not pay them the money theyRead MoreEssay on Feudalism and Capitalism3836 Words   |  16 Pageseconomic theory or set of theories (which can be contradictory), to teach particular theories (including economic theories), and to provide an objective for analysis using economic theory. (Professor Gabriel) It is with this in mind that the films of Matewan and Norma Rae are of importance to us when analyzing the concepts of feudalism and capitalism, because they are films that contain in them examples from these two types of economic systems. While the concept of unions is prevalent in both films