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Trans World Airlines (TWA) merged with American Airlines (AA) in 2001 due to financial losses on TWA's part. AA got to keep thier name, employees, hubs, and just about everything they had while TWA seemed to be the loser in this situation. AA promised to keep open hubs, employees, etc. but hasn't cooperated with any of those demands. They now have hit a wall of terrible reputation once again (As they did Pre-TWA merger) and financial losses with another merger to put them back on their feet... again.
So in this scenario: What would you have done?
I have posted what I would have done myself below:
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First of all, if I was in charge of the merger, I would not have allowed American Airlines to keep their name because they were known as a classless fallen airline with no talent in the late 90's which drove people away, while TWA had a great reputation with awesome employees. So by keeping TWA's name, we would got to see more of their great livery they announced in 1997.
Secondly, I would have placed TWA and AA employees evenly on the seniority list.. and not throwing TWA employees to the bottom of the list... because some people had worked there 50 years and suddenly were placed on the seniority list like they worked for 1 month.
Next, I would have carefully looked at each of the hubs: TWA (St. Louis, Boston, New York-JFK) and AA (Chicago, Dallas, Miami, New York-JFK, San Juan) and I would have shut down operations immediately at San Juan while I would reduced flights at Chicago, St. Louis, Dallas and Boston.. but not significantly downgrade any of the hubs at all!
Then, I would have placed my Base at New York-JFK, also making JFK my largest hub.
Next, Due to rising Asian market... most US airline's made a mistake by NOT doing this... I would have had TWA have a significant prescence in Asia flying to Tokyo, Beijing, Seoul, Shanghai, Hong Kong, and Singapore. So in return I would have to close sme EUropean markets primarily in Eastern / Northern Europe down!
By this time it is probably 2006, and my aircraft is aging. So I would put in major orders of the 787, 737-900ER, and A320 series... proven to save money on expenses.
I then would add a western coast hub due to the rising Asian Market. So I would ramp flights up at LAX, and call it a hub alongside my other 7.
If I Did All This, I may have made TWA look like this by 2013:
Name: Trans World Airlines
IATA: TW
Callsign: Trans World
Hubs (Flights a day):
New York- JFK International Airport: 550
Miami International Airport: 450
St. Louis/Lambert International Airport: 400
Chicago O'Hare International Airport: 375
Boston/Logan International Airport: 280
Dallas/Fort Worth International Airport: 235
Los Angeles International Airport: 210
...AND THAT IS HOW I WOULD HAVE MANAGED THE TWA / AA MERGER.
Feel free to comment nicely about my suggestions...
NOW LETS HERE WHAT YOU WOULD DO?
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