logo
episode-header-image
Apr 2024
28m 22s

Merging Competitors: U.S. Airways and Am...

Harvard Business Review
About this episode

In February 2013, U.S. Airways announced that it would merge with American Airlines to create the world’s largest airline. During the acquisition, then-CEO Doug Parker and his board had transformative decisions to make.

How should two large corporations merge their operations? Which members of each company’s C-suites should stay? How fast should they move on these changes? Parker knew that these strategic decisions would send important signals to employees, customers, and competitors.

In this episode, Harvard Business School senior lecturer David Fubini breaks down the strategy underlying this historic airline industry merger. He explains how Parker approached each of these strategic decisions — especially in areas, like culture and operations, where American and U.S. Airways had huge differences.


Key episode topics include: strategy, corporate governance, mergers and acquisitions, operations strategy, aerospace sector, airlines, leadership.

HBR On Strategy curates the best case studies and conversations with the world’s top business and management experts, to help you unlock new ways of doing business. New episodes every week.

· Listen to the original HBR Cold Call episode: How to Lead through a Merger: U.S. Airways and American Airlines (2021)

· Find more episodes of Cold Call

· Discover 100 years of Harvard Business Review articles, case studies, podcasts, and more at HBR.org

Up next
Jun 25
An Announcement from HBR On Strategy
For the last two years, HBR On Strategy has been a collection of the best conversations and case studies with the world’s top business and management experts, to help you unlock new ways of doing business. But the time has come for HBR On Strategy to hit pause on new episodes. We ... Show More
1m 5s
Jun 25
The Strategic Advantage of Tapping Freelancers
The rapid pace of technological change is making a big impact on hiring. Some organizations are dynamically securing freelance workers through platform apps like Upwork and Freelancer. Other companies are investing heavily in work enabled by artificial intelligence. John Winsor a ... Show More
30m 26s
Jun 18
The Promises, Pitfalls, and Trade-offs of the Circular Economy
Most businesses are built on a linear model: take, make, and discard. But that norm is reaching its limits, and leaders are under pressure to find smarter, more sustainable ways to operate. Weslynne Ashton is a systems scientist and professor at the Illinois Institute of Technolo ... Show More
20m 36s
Recommended Episodes
Mar 2016
#140: Gary Kelly—How Southwest Airlines Cultivates Amazing Company Culture
Is it possible to keep your company’s culture intact and offer unbelievable customer service—even when your business is growing fast? Gary Kelly, CEO of Southwest Airlines, believes you can. Even though Southwest employs 50,000 and serve 118 million passengers per year, he and hi ... Show More
54m 26s
Apr 2023
Airlines are looking to reclaim their groove
Airlines aren’t doing the hottest at the moment — just look at the headlines about Southwest’s latest spate of flight cancelations. According to Samuel Engel, senior vice president at the consultancy ICF, that’s been due to higher labor costs and a slowdown in highly-profitable b ... Show More
8m 49s
Apr 2023
Airlines are looking to reclaim their groove
Airlines aren’t doing the hottest at the moment — just look at the headlines about Southwest’s latest spate of flight cancelations. According to Samuel Engel, senior vice president at the consultancy ICF, that’s been due to higher labor costs and a slowdown in highly-profitable b ... Show More
8m 49s
Sep 2018
Southwest vs American - The Darling of Deregulation | 4
As deregulation dawns, Southwest Airlines’ founder and CEO are locked in a power struggle. In the middle is Herb Kelleher, Southwest’s corporate attorney. And after 18 months serving as a punching bag for the company’s top brass, he’s had enough.But as Southwest deals with a succ ... Show More
23m 37s
Oct 2023
Vada Manager | Leadership lessons from a career of service
For Vada Manager, everything comes back to relationships. Throughout a career serving on countless Boards of Directors and advising everyone from Nelson Mandela to Nike founder Phil Knight to the New York Yankees’ George Steinbrenner, Manager has accumulated more than 14,000 cont ... Show More
42m 43s
Jul 2021
Encore: Southwest vs American Airlines | Free LUV | 6
Thanks to deregulation, no-frills knock offs of Southwest take to the skies like crows. About 120 airlines have gone out of business or filed for bankruptcy since the industry was deregulated in 1978.American’s SABRE system optimizes...everything. It manages ticket pricing so fli ... Show More
24m 53s
Apr 2021
Does business travel have a future?
Why fly when you can videoconference? After a year of Covid lockdowns, that's the question many business executives are asking themselves.Manuela Saragosa speaks to one frequent flyer, Juliette Kayyem, who says that after a year of being grounded, she now thinks more about time w ... Show More
18m 15s
Feb 2023
Ryanair: Low Cost Obsessed - [Business Breakdowns, EP. 98]
This is Matt Reustle and today we are breaking down Europe's largest airline, Ryanair. As we do more breakdowns, we start to look for patterns of successful business models that succeed across different industries. Ryanair is another case study in low-cost shared economies of sca ... Show More
47m 43s
Sep 2023
Boeing: Turbulent Times - [Business Breakdowns, EP.129]
This is Zack Fuss, an investor at Irenic Capital, and today we’re breaking down Boeing. Founded in Seattle in 1916 by William Boeing, the company has produced thousands of commercial and military aircraft over the past century. It is an important national and global asset and one ... Show More
47m 8s
Mar 2021
Boeing vs Airbus – Mayday | 6
Nous sommes en 2011. Airbus et Boeing se battent pour savoir lequel des deux va réussir à décrocher le plus gros contrat de l’histoire commerciale de l’aviation. American Airlines veut en effet commander 460 avions monocouloir et, comme le géant européen de l’aviation fait tout s ... Show More
27m 41s