Airline航空公司收购合并案例分析

ConnectingwithOneWorld-AirlinesTeamMembers:HongruWangYunshengYangChengranWangZhuoranZhouShengjieLiMinLiDirectInvestmentandCollaborativeStrategiesQ1SignificantMergersintheIndustryDelta+NorthwestAirlines(2008)—SkyteamTheacquisitionprovedtobefruitful,catapultingDeltatothetitleoflargestairlineandgeneratingsignificantcostsavingsforboththeairlines.Q1UnitedAirlines+ContinentalAirlines(May2010)—StarAllianceThismergerusurpsDeltatobecomethenewlargestairline,positioningtheairlinesforglobalanddomesticcompetitionandimprovedserviceandperformance.Q1M&AAdvantage1.Costreductionandrevenueincrease2.Resourcespooling3.ServiceoptimizationQ1M&ADisadvantage1.Layoffs2.Reducecompetitionsignificantlyandmarketmonopolies3.Oftenaccompaniedbyconflictrelatedtoseniorityissues,newworkrules,etc.Q1Non-EquityAllianceAdvantage1.Attainingthetechnicalefficienciesoflowerproductioncosts/betterservice2.ReachofSeamlessServiceNetworksandincreaseloadfactors3.Enhancedfrequentflyerprograms4.Shareinformation(Code-sharing)Q1Non-equityallianceDisadvantageToobroadsettingofobjectives/IncongruentobjectivesAsymmetryofpartners,inthesizeAsymmetryofbenefitsversusexpectationsDifferingproduct/servicestandardsLackofExclusivityQ2Someairlineshavesurvivedwithoutextensiveinternationalconnections.Cantheycontinuethisstrategy?Whenthereissufficienttrafficonthecitypairsthatarouteserves,thereislittleneedtohavefeederorconnectingroutesforanairlinetobeprofitable.Withouttheneedforhubstomakeconnections,someairlinescanoperateinsmallerbutcloser-to-downtownairports.Theycanavoidthecostsassociatedwiththetransferandthepaymentofovernightexpensestopassengers.Q2Someairlineshavesurvivedwithoutextensiveinternationalconnections.Cantheycontinuethisstrategy?Theymaybeabletoovercomeanydisadvantagesfromsmall-scaleoperationsbytargetingtheirpromotiontoregionalandnichegroupsandbyrunninglow-costoperationsthatchargelowfares.Conventionalwisdomwouldsuggesttheycaninfactsurviveintheirpresentoperationalmodeandthatattemptstoexpandandmodifytheiroperationsmightmakethemmorevulnerable.Q3Whyshouldanairlinenotbeabletoestablishserviceanywhereintheworldsimplybydemonstratingthatitcanandwillcomplywiththelocallaborandbusinesslawsofthehostcountry?ConsideringeithertheinternationalorsimplythedomesticenvironmentAmajorconsiderationiswhethereconomicinterestsintheairlineindustryarebetterservedthroughregulationviathemarket.Whyregulatedomesticairlineindustries.Q3ProponentsCompetitionhasforcedcarrierstobecomeefficientorelsegooutofbusiness,insteadofbeingsubsidizedbyregulatedrouteandfarestructuresEconomiesofscaleinhandlingpassengersandcargo.OpponentsLocalinterestsareoftenill-servedbyderegulationOpponentsarguethatlocalinterestsareoftenill-servedbyderegulationsinceairlinesarefreetodiscontinueserviceandtowagepredatorypricewarsthatputcompetitorsoutofbusinessThehighbarrierstoentryintheindustryfurtherexacerbatethissituationQ3Anothermajorconsiderationdealswiththepoliticaldimensionsofthequestion.Becausemostgovernmentsseeairlinesasakeynationalindustry,theyopposegivingforeigncarriersaccesstodomesticroutesongroundsofbothnationalsecurityandconsumerwelfare.Countriesbelievetheycansavemoneybymaintainingsmallairforcesandrelyingondomesticairlinesintimesofunusualairtransportneeds.Forexample,U.SgovernmentusedU.ScommercialcarrierstohelpcarrytroopstoandfromIraq.Aswell,airlinesareasourceofnationalpride,andaircraftsymbolizeacountry’ssovereigntyandtechnicalcompetence.Q4TheForeignOwnershipRestrictionsonAirlinesTheUnitedStatesandCanadarestrictforeignownershipto25%TheEUhastakenstepstoliberalizewithinEuropeandsetsa49%limitonnon-Europeanownership.InAustraliaandNewZealand,foreignersarepermittedtoacquireupto49%oftheequityofaninternationalcarrierandupto100%ofadomesticairline.Q4Reasons1.WeneedUScarriersfornationalsecurityUSbelievetheycansavemoneybymaintainingsmallairforcesandrelyingondomesticairlinesintimesofunusualairtransportneeds.Argument:ItwouldbecheaperandbetteriftheUSgovernmentsimplytenderedforchartersontheopenmarketQ4Reasons2.ForeignAirlinesDon'tHavetheSameSecurityStandardsUShaveworriedaboutprotectingtheirairspaceforsecurityreasons.Argument:AUSairlineownedbyforeigninvestorsisoperatedbyUSpermanentresidentsandcitizens,andfollowingallUSstandardsandprocedures,subjecttoallUSregulationsandcontrols.Q4Reasons3.ForeignAirlinesWouldTakeAwayJobsfromAmericansThedesiretomaintainexistingjobsthreatenedbyforeigncompetitionisprobablythesinglemostimportantsourceoftoday’’sprotectionistpoliciesArgument:AllUScarriershavetoemployeitherlawfullyadmittedforeignnationalsonspecialworkvisas,orUSpermanentresidents,andindeed,forsomejobs,theycanonlyemployfullUScitizensQ4Reasons4.AForeignAirlinewould'cherrypick'onlytheProfitableRoutesTheforeignownedairlinewouldonlyflyonthe'easymajorroutesthatanyairlinecanmakeaprofiton‘‘Argument:TheownershipofanewstartupairlineagainmakesnosubstantialdifferencetotheexternalmarketplacefactorsthatinfluenceallairlinesandtheirpresentoperationsQ4Reasons5.ProfitswillbeTakenOffshoreAllowingforeignerstoownUSairlinesmeansthatthey'lltakealltheprofitsoffshoreandsomehowharmtheUSeconomyintheprocessArgument:NoUScarrierismakingsomuchprofitthattransferringsomeshareofitoffshorewouldharmtheeconomyRealityTheU.S.lawlimitingforeignownershipofU.S.airlinesisconsideredananachronismbecausepeopledesiretobenefitfrommorecompetition,lowerfares,betterservice,andnomoretaxpayerbailoutsofold,irrelevantairlinesthatshouldbeallowedtoquietlyexpireanddisappearQ4Q5Q5Q5Ifafewlargeairlinesornetworkscometodominateglobalairservice………MoreconvenienceRiskreductionLowercostQ5Ifafewlargeairlinesornetworkscometodominateglobalairservice………UnderoligopolyconditionsHighpricesPoorserviceNospecialofferQ6TheAirlineBailoutManyairlineshaverecentlybeennomorethanmarginallyprofitable.Q6TheAirlineBailoutAirlineisavitalindustry.Facilitateeconomicgrowth,worldtrade,internationalinvestmentandtourismGovernmentinterventiontoguaranteetheirsurvivalAirportsandairtrafficcontrolinfrastructureEmployeetrainingforpilots,mechanics,etc.ProtectionfromforeigncompetitionCreditinstrumentstoaircarriersDeferredtaxationQ7Two-StageModelofAirlinesGameCost&RevenueSharingMethodQ7ContributionApproachCost&RevenueSharingMethodThecontributionapproachisusedtoarriveataprofitsharingpercentageforeachoftheairlines.Sincethepartiesmaycontributelabour,managementandcapitaltothejointventure,itisreasonabletodividetheincomeorexpensesbasedontherelativecontributionsofeachparty.Theunderlyingprincipalisthatreturnsaretobesharedinthesameproportionasthecostsandcapitalarecontributed.Q7ValuingContributionCost&RevenueSharingMethodAvailableSeatMiles(ASMs)Acommonindustrymeasurementofairlineoutputthatreferstooneaircraftseatflownonemile,whetheroccupiedornot.Anaircraftwith100passengerseats,flowna