Air Cargo Community Ambivalent About Carrier Mergers

When the Justice Department joined six states and the District of Columbia in a lawsuit to block the proposed merger of American Airlines and US Airways, supply chain managers may have good reason for mixed emotions

By ·

When the Justice Department joined six states and the District of Columbia in a lawsuit to block the proposed merger of American Airlines and US Airways, supply chain managers may have good reason to feel ambivalent.

“It’s sort of ‘good news-bad news’ story,” said Brandon Fried, executive director of the Airforwarders Association.

On the one hand, shippers may be relieved that less consolidation will provide them with more route options. But at the same time, we have to be concerned with the sustainability of both carriers in the deal.”

Indeed, American Airlines had planned to emerge from bankruptcy in the next few weeks before teaming with US Airways and take on its larger competitors.

Meanwhile, both airlines plan to fight the lawsuit.

Should the proposed merger eventually prevail, it would mean the creation of the world’s largest airline, making 70% of the U.S. market dependent on US Airways-American Airlines, United Airlines, Southwest Airlines, and Delta Airlines.

The European Commission and the judge overseeing the bankruptcy proceedings of AMR Corp. – the parent company of American Airlines – had already given the green light to the deal before the Justice Department weighed in with its objection.


About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at [email protected]

Subscribe to Logistics Management Magazine!

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your entire logistics operation.
Start your FREE subscription today!

Article Topics

All Topics
Latest Whitepaper
Digital Issue: The Current State of Third-Party Logistics Services
It has become quite clear that logistics professionals are now facing an unprecedented set of challenges. From tightening capacity, to ongoing regulation hurdles, to the complexity brought on by e-commerce, today’s shippers are transforming the way they manage their logistics operations.
Download Today!
From the June 2017 Issue
Here are five trends that every shipper­—and potential shipper—must watch as the demand for experienced logistics and supply chain professionals soars.
2017 Rail/Intermodal Roundtable: Volume stable, business steady
Cross-Border Logistics: NAFTA tune-up time
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Women in Logistics: Breaking Gender Roles to Win the War for Talent
In this session you'll hear from a panel of women who are now leading top-level logistics and supply chain operations. The panel will share their success stories as well as advice for women who are now making their way up the ladder.
Register Today!
EDITORS' PICKS
2017 Top 50 3PLs: Investment and Consolidation Maintain Traction
The trend set over the past few years for mergers and acquisitions has hardly subsided, and a fresh...
The Evolution of the Digital Supply Chain
Everyone is talking about terms like digitization, Industry 4.0 and digital supply chain management,...

2017 Salary Survey: Fresh Voices Express Optimism
Our “33rd Annual Salary Survey” reflects more diversity entering the logistics management...
LM Exclusive: Major Modes Join E-commerce Mix
While last mile carriers receive much of the attention, the traditional modal heavyweights are in...