The completion of the merger means American Airlines has risen from the ashes of bankruptcy. This means four major airlines control more than 80 percent of the U.S. air-travel market. But what are the challenges they face?
Ready for takeoff.
The New American Airlines Group is expected to deliver over $1 billion dollars in synergies by 2015.
"By combining the strengths of both companies, we will be delivering the most value to our owners and greatest benefit to our customers," Thomas Horton, Chairman of American Airlines, says.
But the merger survived a challenge from local governments on worries of monopoly practices.
And criticism from consumer groups that it will lead to higher prices.
"More and more mergers. Prices are worse. Choices are less," says a traveller in U.S.
The real challenge lies in the next two years is post-merger integration. Doug Parker, CEO for the brand new American Airlines says the two firms have different corporate cultures that need to be melded into one over time.
The other issue is size. Failures in the past have shown that bigger is not always better in the corporate world.
Source:CCTV
