Merger, Acquisition, and International Strategies Assignment - 1

Merger, Acquisition, and International Strategies - Assignment Example From this paper it is clear that the company served 138,417 million customers. Further, the company employs four marketing concepts in order to generate higher revenues. The company sells quality air travel services. Service is sold at popular prices. The company excellently ferries the customers from one domestic location in the United States to another domestic location on time and in styly. Furthermore, the company offers its in-flight services at reasonable prices. The reasonable prices do not necessarily equate to the lowest airline ticket prices. Reasonable prices are meant to recuperate the expenses of operating the company’s airline business. Reasonable prices allow the company to squeeze out a certain profit percentage from the daily flight schedules. Additionally, the company promotes the benefits of riding in one of the company’s huge jet planes. Promotions include offering discounts to customers to increase loyalty. This research paper declares that promotio n increases customer loyalty. One of the promotion activities is advertising the company’s services on the Internet and other media advertising venues. Likewise, the promotion includes company granting 10 percent discounts to the elderly passengers. Elderly passengers are those aged from 65 years and above. U.S. Airways. U.S. Airways has its main office in Tempe City, Arizona. The company ferries passengers from one United States location to another domestic location. The company ferries international passenger clients from domestic locations to South American destinations, the European Union member states, and different parts of the Middle Eastern territories. During 2012, U.S. Airways generated $13.83 billion revenues. With the merger of U.S. Airways and American Airlines, the new head office of the merged company will be the American Airlines head office. Further, the merger will result in stockholders of American Airlines owning estimated 70 percent of the amalgamated com pany. The U.S. Airways stockholders will own 30 percent of the combined company. The combined company will retain the name of American Airlines. In accounting parlance, when the name of the combined company retains the name of one of the companies, the joining of the companies into one bigger company is classified as a merger. According to the Edgar online website, American Airlines generated passenger revenues amounting to $4,326 million during the first three months of 2007. American Airlines earned $558 million from the regional affiliate revenues during the same year. The company further generated additional $201 million cargo revenue during the same accounting year. Revenues include cash inflows from other revenue sources amounting to $317 million. Further, the merger is a beneficial strategy.