Summary1. IntroductionThis comparison between American Airlines (AA) and US Airways (AWE) starts with the 2008 year-end report, after AWE finally completed the integration of America West into its operations in October, a process that began in 2005. Neither has taken part in any merger or acquisition. since then, and although AWE briefly flirted with the idea of taking over United Airlines in 2008, merger and acquisition plans for both have been contingent on recovery from the global financial crisis (GFC). They have operated as passenger and cargo carriers, albeit under different corporate identities, since the inception of commercial aviation in the 1930s. They have weathered the cycles faced by airlines and the aviation industry in general: political, economic, environmental and social; as well as embracing the technological advancement offered to the sector. Both airlines are Legacy Carriers (Holloway, 2008), each with an American domestic network and an international network. Each operates a hub and speak network; American from hubs in Dallas Fort Worth, John F Kennedy NY, Los Angeles, Miami and Chicago O'Hare: US Airways from Charlotte, Philadelphia, Phoenix and Washington DC and has many competing industries and market segments. Unlike low-cost airlines (LCCs) (Wensveen, 2011), both offer the full range of services expected from Legacy Carriers; three-class cabins (two on some routes), full meal services, in-flight entertainment (IFE), airport lounges and frequent flyer programs and, unlike LCCs, are members of global alliances. AWE managed to emerge from the global financial crisis and improve its balance sheet while AA consistently recorded losses until the end of 2011 it filed for Chapter 11 bankruptcy protection for...... half of paper...... yment. Competitors began to record profits and apply competition throughout their network. Creditors, customers and investors were increasingly concerned about AA's performance. Finally, in November 2011, American Airlines filed for bankruptcy protection – the first time it had done so. During this period, all comparisons show that US Airways was in a better economic position than American Airlines: with the exception of some metrics in select years where AA was able to improve due to Chapter 11 protection. AWE consistently produced higher revenues high ASM combined with lower CASM: the recipe for sustainable competitive advantage. With few overlapping routes, a domestic network improvement for AA, as well as an international improvement for AWE; antitrust courts expressed few reservations and approved the merger that created the world's largest airline.
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