Bradley Tilden’s Dilemma Following the Alaska Airlines-Virgin America Deal (French)

ABSTRACT

This award winning case discusses the merger of Alaska Airlines and Virgin America, two leading airlines in the US. In April 2016, Alaska Air Group acquired Virgin America for US$ 2.6 billion, bringing together two airlines known for their distinct customer service, low fares, and operational consistency. The case describes the consolidation in the US aviation industry and the rationale behind the merger. The objective of the merger is to expand Alaska Airlines’ footprint in California and to strengthen its competitiveness against some of the major carriers in the US. The case discusses the perceived synergies from the merger for both airlines and how the combination will create a bigger, stronger airline offering a premium product with an expanded presence across the West Coast. The merger would also propel Alaska Airlines into the ranks of the top five air carriers in the US...

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Issues

The case is structured to achieve the following teaching objectives:

• Understand the rationale behind the Alaska Airlines and Virgin America merger and its potential synergies and evaluate the benefits of the deal to Alaska Airlines and Virgin America.
• Understand the need for consolidation in the US aviation industry and evaluate the impact of the Alaska Airlines-Virgin America merger on the industry.
• Understand the importance and challenges in post-merger integration.
• Understand the importance of cultural compatibility in making mergers successful.
• Understand the importance of brand image and brand dilution in the aviation sector.
• Identify the issues and challenges faced by Tilden following the merger and explore strategies he may adopt to overcome these challenges.

Keywords

Alaska Airlines-Virgin America merger, Merger and Acquisitions, Strategic Alliances, Post-merger integration, Brand dilution, US Aviation Industry, Cultural Compatibility, Synergies

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