Southwest and AirTran merger
- What would make the arrangement between Southwest and AirTran a merger and not an acquisition?
- What were the reasons that Southwest and AirTran had for merging? What approach(es) did they use?
- What would cause the Southwest/AirTran merger not be successful?
- What strategies would you recommend to Southwest should it need to restructure?
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A merger occurs when two companies, which are often of about the same size, agree to move forward as a single company instead of remaining separately owned and operated. An acquisition on the other side is where one company takes over another one clearly establishing itself as the new owner. In this case, southwest and AirTran agreed to work together to gain the overall benefit and thus the agreement resulted in a merger and not an acquisition. There are a number of reasons why Southwest and AirTran had for merging. One of them is becoming stronger to their competitors. They eliminated the competition that existed between them and this made them stronger against other airlines…
APA
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