Airline labor-management conflict Case Study Example | Topics and Well Written Essays - 1000 words

Airline labor-management conflict - Case Study Example Therefore, he was balanced in his assessment of the situation. Ott (2006) had clearly pointed out that the fate of the airline rested with the management, ALPA representatives, the industrial court and the team of arbitrators who are mandated to manage the ALPA contract in the event that both sides in the conflict failed to reach an amicable solution. According to Ott (2006), the collapse of Delta would have created a big gap in the America’s aviation industry, leaving the remaining players to heighten their competition and inherit Delta customers and clientele base. A consensus on the issue of picketing pilots who were protesting pay cuts would stem the fallout following the airline’s move to control labor expenditures. The article is extensive in the sense that it touches on the future of would-be pilots who may start to wonder how they will survive in an industry coupled with risks and lower incomes. Factually, such cuts could have had negative repercussions on the then aviators, other professionals and stakeholders in the industry as well as subsequent pilots. Ott (2006) had painted out a clear picture of the short-term and long-term impacts of the likely collapse of Delta, suggesting that an estimated 50,000 jobs would be lost immediately. And with the exit of such a significant population of human resources and profitable assets, key Delta hubs such as Jackson International Airport would be reduced to idleness due to under capacity. And whereas other busy hubs that are dominated by Delta such as Salt Lake City and Cincinnati would face a similar fate, the airline’s rivals in the market like Continental Airlines would struggle to provide alternative air transport mechanisms. Ott (2006) had foreseen that the failure of Delta’s rivals to fit in its shoes would reduce the former busy hubs to hubs for more local flights. A complete reversion to the current bee-hive of activity in those hubs from fewer regional

Mergers and Acquisitions Essay Example | Topics and Well Written Essays - 2500 words - 1

Mergers and Acquisitions - Essay Example It is done either through merger and acquisition where one company either devours another one or decides to merge together and form a new entity (Andrews and Smith, 2006). A significant number of these mergers and acquisitions either goes smoothly whether the companies emerge victorious and successful in the process, while in other case the deal fails to get through, and the companies suffer massive financial damages. a) Increased globalisation across the world has increased the number of across borders mergers and acquisitions around the world. The authors of the article named 'Dubious Logic of Global Mega-Mergers’, argue that most of the time the megamergers that take place, does not substantiate into something extra ordinary, as was thought to be. The article represents how the mega companies are still living under the shadows of the age old theory of the capitalists (Benner and Sandstrom, 2012). Most of the mighty and strong companies in and around the world strongly belie ve that the prevalence of one can only be guaranteed, if the prevalence of the others can be weakened. For example most of the big companies resort to constant and innumerable number of mergers and acquisitions in order to stay big and strong. ... As companies engage in innumerable cases of mergers and acquisitions the length and breadth of the industry begins to get shortened. Thus slowly the industry begins to shrink and thus there remains only limited number of players. These players happen to call the shots. This argument is favoured by various researchers. Although the authors Cravens (2010) state that in reality there is no cause and effect relationship between globalisation and mergers and acquisitions. In fact globalisations after the World War II has lead to decreased concentration in certain industrial sectors. Companies engage in engage in merger and acquisition to take advantage of the economy of scale. Apart from that the other advantages are transfer of technical know-how, sharing of intellectual resources and other strategic advantages. The authors are right in their view that the history of merger and acquisitions is strewn with numerous failures but close review of the failures will indicate that the failures were partly due to the management incompetency (David, James and Arthur, 2011). Due to incompetency, the management of the acquiring companies could not evaluate the exact economic value and the subsequent risks. Despite the fact that the history of mergers and acquisitions are riddled with innumerable failures but there are various successes stories also. The following table indicates the mergers and acquisitions in and round the world. It is indicated that the number of cross border as well within the border mergers and acquisitions increased by almost 100 times in the last period 1995 to 2000. If there were no successful cases of cross border mergers, then the number of cross border mergers and acquisitions would not have