(Answered) : 3) How do airlines benefit from acquisitions of other airlines? How does it affect the market? How does it affect the consumer?

3) How do airlines benefit from acquisitions of other airlines? How does it affect the market? How does it affect the consumer?

Expert Answer

Airlines benefit birth positively and negatively from acquisitions of other airlines.

Usually the airline merges with the airline that has a different route operation than its own. It also helps in expansion of service coverage and avoiding any overlapping of airline schedules.

The quality of service and brand image of the other airline.

It helps the airlines by pushing the prices and reducing competition. Airline mergers and acquisitions have an important effect on the airline employees who participate

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