Los Angeles Business Merger & Acquisition Attorneys Talk Combining Business Operations

As Los Angeles business merger and acquisition attorneys, we understand the mistakes that are often made when it comes to combining business operations.  In recent months there has been plenty of speculation regarding the merging of U.S. Airways and American Airlines, both good and bad.  In fact, some opponents of the merger have filed lawsuits, claiming the merger of the two would ultimately drive up prices, hurting consumers.  One such lawsuit was recently filed in a San Francisco federal district court on behalf of nearly 40 consumers, according to an article at The Huffington Post.

In recent years there have been two occasions on which major airlines merged.  Executives in the US Airways-American Airlines merger have certainly had an opportunity to examine the mistakes made in similar mergers in order to avoid them in combining business operations.  Derek DeCross, who is vice president of global sales for American Airlines, recently said lessons could be absorbed from the two most recent airline mergers, Continental and United in 2010, and Northwest and Delta in 2008.

In past airline mergers, problems have cropped up which could have been prevented.  In 2005 when AmericaWest and US Airways merged, the reservation system of AmericaWest was used and issues ensued due to using the smaller system.  Even United admitted that after merging with Delta, there were numerous problems including flight delays and cancellations.

In recent days., employees of American and US Airways have been planning methods of pressuring lawmakers to support the merger after an antitrust lawsuit was filed by the U.S. Department of Justice.  In fact, officials at both airlines have been engaged in planning an employee “fly-in” on September 17 and 18, where employees will actually arrive in Washington, D.C. so that they can take a personal approach in pressuring lawmakers.

Time will tell what happens with the merger, but if all goes well perhaps all consumers, including those in California, will benefit from the new American.

At the Law Offices of Spotora & Associates, our Los Angeles business attorneys specialize in mergers and acquisitions as well as many other areas of business technology and family law, intellectual property, labor and employment, and more.

This entry was posted on Monday, September 9th, 2013 at 12:29 pm and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.