The Merger of American Airlines and US Airways
1. Case papers should address the key issues that pertain to the financial strategy and then make clear recommendations with as much support as possible.
2. Papers should be no more than three double spaced pages (not including exhibits).
3. Papers should be organized into specific sections. For example, Background, Key Issues, Risk, Recommendations, and Detailed Support for Any Recommendations.
4. Reading the additional material I provide, then you have to answer the following question:
(1) First, was the valuation for American Airlines accurate?
(2) Did this transaction benefit the shareholders of US Airways?
(3) With the size of the new company and the dwindling number of international airlines operating around the globe, would this transaction impede trade or was it really creating an airline with the size and economies of scale to thrive in this highly competitive marketplace?
(4) From a financial perspective, what risks still exist for US Airways and its shareholders?
(5) What are the real benefits for US Airways and how do they really overcome their obstacles?
