The U.S. Airways Group: A post-merger analysis

America West Airlines acquired the bankrupt US Airways on September 27, 2005 to form the US Airways Group, improving its competitive position in the US airline industry. This paper analyzes the post-merger performance of the US Airways Group using airline operating metrics and financial ratios for the period 2005 to 2013. While the airline has still a long way to go to improve its leverage and liquidity ratios, its capital structure and ability to pay its obligations have improved since 2005. Moreover, although the airline is still inefficient in utilizing its assets, the efficiency improvements achieved since the merger have resulted in profits and positive returns to investors. Its share prices have also largely outperformed the S&P 500 and the XAL since the merger, an indication that investors are pleased with how the merger is developing over time. In view of the US Airways Group's improving financial and operating performance, the merger is, essentially, a success.

• Record URL:
  • https://doi.org/10.1016/j.jairtraman.2016.04.022
• Record URL:
  • http://www.sciencedirect.com/science/article/pii/S0969699716301648
• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/oclc/31005945
• Supplemental Notes:
  • Abstract reprinted with permission of Elsevier.
• Authors:
  • Manuela, Wilfred S
  • Rhoades, Dawna L
  • Curtis, Tamilla
• Conference:
  • 18th Air Transport Research Society World Conference (ATRS 2014)
  • Location: Bordeaux , France
  • Date: 2014-7-17 to 2014-7-20
• Publication Date: 2016-9

Language

• English

Media Info

• Media Type: Digital/other
• Features: Appendices; Figures; References; Tables;
• Pagination: pp 138-150
• Serial:
  • Journal of Air Transport Management
  • Volume: 56, Part B
  • Issue Number: 0
  • Publisher: Elsevier
  • ISSN: 0969-6997
  • Serial URL: http://www.sciencedirect.com/science/journal/09696997

Subject/Index Terms

• TRT Terms: Airlines; Competition; Financial analysis; Mergers and acquisitions
• Identifier Terms: US Airways
• Subject Areas: Administration and Management; Aviation; Economics; Finance;

Filing Info

• Accession Number: 01610931
• Record Type: Publication
• Files: TRIS
• Created Date: Sep 21 2016 2:41PM