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 from acquisition in the following manner:
You get aircrafts at depreciated cost.
You get trained staffs.
You get the entire customer base.
You may get some subsidy from the government or you can avail the same offers circulated by the suppliers/vendors to the acquired airline.
You get the brand name and identity.
You can get better negotiated price which may be lesser than the market.
All these are valid only when the company doesn’t have a negative image or isn’t
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