Question

If British and American pilots and their respective unions merge after their airlines merge, how would...

If British and American pilots and their respective unions merge after their airlines merge, how would the merger affect costs and income of the pilots?

Homework Answers

Answer #1

Mergers refer to coming together abd merging of two different firms which operate in the same market. Merging between 2 big firms creates a concentration of power or a situation of monopoly in the market. It curbs competition and strengthens the hold of the merging firms in the industry.

If two of the most important airline firms British airlines and American airlines decide to merge, it will create their dominance in the market. If the pilots in these firms belong to different unions, they will demand higher wages, as they know that the firm merger will help the company in economies of scale and thus lower costs. Also, they being the most important input for these firms to work, they will demand high wages, thereby increasing the firms' costs.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
How will the coup affect the auto and other American and British companies doing business in...
How will the coup affect the auto and other American and British companies doing business in Thailand?
Case Study: Merger of US Airways and American Airlines In February 2013, US Airways and American...
Case Study: Merger of US Airways and American Airlines In February 2013, US Airways and American Airlines (AA) announced plans to merge, a union that would create the world’s largest airline. Because this was the fourth major U.S. airline merger in recent years and because the merger would take place in the context of bankruptcy protection sought by American Airlines in 2012, the parties anticipated intense scrutiny of the merger’s competitive effects by the U.S. Department of Justice (DOJ) and...
Shortly after being hired as an analyst with Global American Airlines, Kim Williams was asked to...
Shortly after being hired as an analyst with Global American Airlines, Kim Williams was asked to prepare a report that focused on passenger ticketing cost. The airline writes most of its own tickets (largely through reservations personnel), makes little use of travel agents, and has seen an ever-increasing passenger interest in e-ticketing (i.e., electronic reservations and tickets handled over the Internet). After some discussion, Williams thought it would be beneficial to begin her report with an overview of three different...
The Wall Street Journal presented data suggesting that United Airlines was not covering its costs on...
The Wall Street Journal presented data suggesting that United Airlines was not covering its costs on flights from San Francisco to Washington D.C,. The article quoted analysts saying that United should discontinue this service. The costs per flight included the costs of fuel, pilots, attendants, food, etc. used on the flights. They also included shared costs associated with running the hubs at the two airports, such as ticket agents, building charges, baggage handlers, gate charges, etc. Suppose that the revenue...
American Airlines is considering adding a Los Angeles to Singapore route. The new route would require...
American Airlines is considering adding a Los Angeles to Singapore route. The new route would require the investment in a new A350 plane costing $300 million. The airline plans on flying this route for only 5 years, because it could not obtain the necessary landing slots after such time. American will slavage the plane for $200 million after five years. The plane will be depreciated straight-line to zero over its five-year life. This route will bring in estimated revenues of...
suppose that American dollar depreciate against Japanese yen. explain how would this affect the current account...
suppose that American dollar depreciate against Japanese yen. explain how would this affect the current account balance in Japan
Using a clearly-labeled graph, show how an increase in consumer income would affect the equilibrium price...
Using a clearly-labeled graph, show how an increase in consumer income would affect the equilibrium price and quantity of an inferior good. Show the consumer and producer surplus after this increase in income.
5. How does an increase in the value of the Egyptian pound affect American businesses in...
5. How does an increase in the value of the Egyptian pound affect American businesses in Egypt? 6. When the dollar is worth more in relation to currencies of other countries, are you more likely to buy American-made or foreign-made jeans? Are U.S. companies that manufacture jeans happier when the dollar is strong or when it is weak? What about an American company that is in the business of importing jeans into the United States? 7. "In a world without...
Delta airlines case study Global strategy. Describe the current global strategy and provide evidence about how...
Delta airlines case study Global strategy. Describe the current global strategy and provide evidence about how the firms resources incompetencies support the given pressures regarding costs and local responsiveness. Describe entry modes have they usually used, and whether they are appropriate for the given strategy. Any key issues in their global strategy? casestudy: Atlanta, June 17, 2014. Sea of Delta employees and their families swarmed between food trucks, amusement park booths, and entertainment venues that were scattered throughout what would...
11.) If you put $10,000 in the bank today, how much would you have after 4...
11.) If you put $10,000 in the bank today, how much would you have after 4 years if you earned 3% compounded monthly? A. $11,255.09 B. $10,940.51 C. $10,927.27 D. $11,273.28 E. None of the given choices. 12.) If you save $3,000 a year, and earn 6.5% interest annually, how much will you have in your account after 25 years? $101,478.92 $188,146.13 $79,875.00 $176,663.04 13.) If your credit card company tells you that the interest rate is 19.0%, what is...