KLM - Air France (merged)
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Terminal 3 Green
Why do I have the nagging feeling I pushed some button in you ?
You want to talk about it ? Get yourself comfy and give me 50 quids.
I feel honoured to be spanked by someone who is obviously a high flyer.
International mergers experience ?? Who the hell are you ? Having fun surfing the net between 2 board meetings to release the tension ??
Everything is going to go just fine and no one, exept Mr Edd and your good cranky self, is going to get grey hair.
I do concur with Lemurian, a very small number of workers succeeded in bringing total chaos in Heatrow not giving a toss about the people who were trying to leave the country. You'd think they were sent to summer camp in France to train !!
And by the way, trust me, I know a thing or two about chaos !
Why do I have the nagging feeling I pushed some button in you ?
You want to talk about it ? Get yourself comfy and give me 50 quids.
I feel honoured to be spanked by someone who is obviously a high flyer.
International mergers experience ?? Who the hell are you ? Having fun surfing the net between 2 board meetings to release the tension ??
Everything is going to go just fine and no one, exept Mr Edd and your good cranky self, is going to get grey hair.
I do concur with Lemurian, a very small number of workers succeeded in bringing total chaos in Heatrow not giving a toss about the people who were trying to leave the country. You'd think they were sent to summer camp in France to train !!
And by the way, trust me, I know a thing or two about chaos !
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There appears to be two points of view here. And it looks to be divided between those that have read their history books and those that hope/wish for the best. I would like to be the latter but years of dealing with management tends to lean me towards to former.
Pegase Driver
A /P disk you are probably correct in saying that the Royal "K" will have to go if KLM is privatised and in hands of another country.
But it does not mean that KLM name has to go, the K could have another meaning, I would propose "Kikkers" (that would translate in English as Froggs Airline Company) apropriate no ?
More seriously, I praise Otterman views ,but will they be shared by the VNV ? Also I find it strange that no official reaction ( yet ) from the US side . Normaly they are quick to react when their interests are shaken... And they will be be with this merger...
Anyway I wish the newly weds all the best, the latin ( a bit cahotic but financially successful) lover getting into bed with the clever, efficient nordic blond. The offsprings should look nice.
P.S: for the AFR crews wanting to play along : Bonjour is " Rouille Morgue " Au revoir is " Tott sinnss " ,and je t' aime " Ique rao fan yao." ( on reste Francais partout !)
More of those on request .
Watcher
But it does not mean that KLM name has to go, the K could have another meaning, I would propose "Kikkers" (that would translate in English as Froggs Airline Company) apropriate no ?
More seriously, I praise Otterman views ,but will they be shared by the VNV ? Also I find it strange that no official reaction ( yet ) from the US side . Normaly they are quick to react when their interests are shaken... And they will be be with this merger...
Anyway I wish the newly weds all the best, the latin ( a bit cahotic but financially successful) lover getting into bed with the clever, efficient nordic blond. The offsprings should look nice.
P.S: for the AFR crews wanting to play along : Bonjour is " Rouille Morgue " Au revoir is " Tott sinnss " ,and je t' aime " Ique rao fan yao." ( on reste Francais partout !)
More of those on request .
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I am repeating what i said in a previous thread.
the smaller company in any takeover always suffers, mind you it is kind of justice to KLM as they have always been so arrogant in the way they have treated competition and takeovers in the past they really deserve a taste of what is to come!!!(remember the AirUk takeover!!!)
The French really believe the world revolves around them and if KLM and their pilots believe they can influence things they have a rude awakening coming to them.
tel est la vie
Zulk is levens
the smaller company in any takeover always suffers, mind you it is kind of justice to KLM as they have always been so arrogant in the way they have treated competition and takeovers in the past they really deserve a taste of what is to come!!!(remember the AirUk takeover!!!)
The French really believe the world revolves around them and if KLM and their pilots believe they can influence things they have a rude awakening coming to them.
tel est la vie
Zulk is levens
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wallabie
Who am I? I'm a consultant who deals at board level with global organisations in the area of project management and organisational change.
I'm glad that things are going well, because you are starting the planning phase of the change lifecycle. Some people will be pleased/excited by this and others disappointed. But just wait until you are in the executing phase, you can expect disbelief, denial and depression amongst others and it is at that stage (quite some way in the future) that your leaders will, by their actions, determine whether the new organisation integrates and succeeds.
Let's make a deal - I won't claim to be an expert on flying ('cos I only drive a little spam can), but please accept that I do have a least some competence in the aftermath of international acquisitions.
BTW, please note that I have not criticised AF or KLM, if the acquisiion is successful, then the emergent organisation will be very strong indeed; Its just that experience leads me to believe that it will be very challenging and that is why BA stand to gain in the medium term, whilst AF/KLM go through a period of understandable introspection.
Who am I? I'm a consultant who deals at board level with global organisations in the area of project management and organisational change.
I'm glad that things are going well, because you are starting the planning phase of the change lifecycle. Some people will be pleased/excited by this and others disappointed. But just wait until you are in the executing phase, you can expect disbelief, denial and depression amongst others and it is at that stage (quite some way in the future) that your leaders will, by their actions, determine whether the new organisation integrates and succeeds.
Let's make a deal - I won't claim to be an expert on flying ('cos I only drive a little spam can), but please accept that I do have a least some competence in the aftermath of international acquisitions.
BTW, please note that I have not criticised AF or KLM, if the acquisiion is successful, then the emergent organisation will be very strong indeed; Its just that experience leads me to believe that it will be very challenging and that is why BA stand to gain in the medium term, whilst AF/KLM go through a period of understandable introspection.
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Final 3 greens, could you explain a bit more extensively what you mean by the challenges that will face us in the future?
I know a lot about pouring coffee and very little about macro-business
but eager to learn what our joint future might hold in store for the work forces of both AF and KLM.
Would also appreciate an insight in the various courses of action you think might be taken by our Glorious Leaders and what their effects might probably be on the success of this venture.
Quite understand if the answer to my questions would take too much time for you, but if you do have some spare time, I would genuinely be interested in knowing a bit more......
I know a lot about pouring coffee and very little about macro-business
but eager to learn what our joint future might hold in store for the work forces of both AF and KLM.Would also appreciate an insight in the various courses of action you think might be taken by our Glorious Leaders and what their effects might probably be on the success of this venture.
Quite understand if the answer to my questions would take too much time for you, but if you do have some spare time, I would genuinely be interested in knowing a bit more......
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Flaps
Its a big subject, but some pointers to what you may experience would be:
- integration of two fine national cultures, which are different in some ways
- the decomposition of the big picture into detailed plans, with the complexity and confusion often arising, typically extending timelines well beyond original estimates
- resistance by people in both companies who don't like the changes (and what it means for them personally), often in the form of passive resistance, e.g. lip service and inaction to promote hidden agendas
- large amounts of management time required to manage the people and other issues that arise
The above are an oversimplification, but change is so culturally contextual that it is difficult to be more precise.
In terms of the leadership required, again an oversimplification, but:
- create a clear and strong vision of where the company is going to
- constancy of purpose (don't be deflected from the goal, but be prepared to be flexible to get there)
- strong and continuous communication (2 way)
- where necessary, take tough decisions and implement them, but understand the impacts and be sensitive/humane
If you are really interested in managing change, there is a good book (quite readable) by 2 Brits, Binney & Williams, called leaning into the Future, ISBN 1-85788-082-X, which explains the process in practical steps and talks about working at an operational level, which is often missed out in some other references, that focus on the strategic space.
Hope this has been of at least some use.
And by the way, about 70-75% of large change initiatives fail to deliver their objectives (Depending on what research one believes), but that means that 30% are steered to succuessul conclusions, so it can be done
Its a big subject, but some pointers to what you may experience would be:
- integration of two fine national cultures, which are different in some ways
- the decomposition of the big picture into detailed plans, with the complexity and confusion often arising, typically extending timelines well beyond original estimates
- resistance by people in both companies who don't like the changes (and what it means for them personally), often in the form of passive resistance, e.g. lip service and inaction to promote hidden agendas
- large amounts of management time required to manage the people and other issues that arise
The above are an oversimplification, but change is so culturally contextual that it is difficult to be more precise.
In terms of the leadership required, again an oversimplification, but:
- create a clear and strong vision of where the company is going to
- constancy of purpose (don't be deflected from the goal, but be prepared to be flexible to get there)
- strong and continuous communication (2 way)
- where necessary, take tough decisions and implement them, but understand the impacts and be sensitive/humane
If you are really interested in managing change, there is a good book (quite readable) by 2 Brits, Binney & Williams, called leaning into the Future, ISBN 1-85788-082-X, which explains the process in practical steps and talks about working at an operational level, which is often missed out in some other references, that focus on the strategic space.
Hope this has been of at least some use.
And by the way, about 70-75% of large change initiatives fail to deliver their objectives (Depending on what research one believes), but that means that 30% are steered to succuessul conclusions, so it can be done
Last edited by Final 3 Greens; 2nd Oct 2003 at 21:43.
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Thank you kindly Final!
Paperback edition of the book "currently unavailable" from Amazon, so I'll have to see if I can get hold of it some other way.
Slightly pessimistic about the abilities of our management to suddenly understand the impacts and be sensitive/humane.
But who knows what miracles their French counterparts will be able to wrench from my countrymen?
Paperback edition of the book "currently unavailable" from Amazon, so I'll have to see if I can get hold of it some other way.
Slightly pessimistic about the abilities of our management to suddenly understand the impacts and be sensitive/humane.
But who knows what miracles their French counterparts will be able to wrench from my countrymen?
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Flaps
If B&W are out of print, there are a few morsels on this site to look at .... http://www.change-management.org/articles.htm
Talking about Dutch sensitivity, I did a piece of change work in Amsterdam and found the culture in that company to be very conducive to sensistivity.
That didn't mean they avoided the tough decisions, but the obvious empathy for the workers meant that the decisions were largely accepted as being bona fide.
Of course, the client was not KLM and I do not know the culture of your management team (although I have worked with other airlines), but heres hoping that they have those qualities too.
The bottom line is that change is always more difficult to implement than envisaged and big change os the same, but big time!
Thus my comments to wallabie, whilst tongue in cheek, were based on over 10 years of observation.
If B&W are out of print, there are a few morsels on this site to look at .... http://www.change-management.org/articles.htm
Talking about Dutch sensitivity, I did a piece of change work in Amsterdam and found the culture in that company to be very conducive to sensistivity.
That didn't mean they avoided the tough decisions, but the obvious empathy for the workers meant that the decisions were largely accepted as being bona fide.
Of course, the client was not KLM and I do not know the culture of your management team (although I have worked with other airlines), but heres hoping that they have those qualities too.
The bottom line is that change is always more difficult to implement than envisaged and big change os the same, but big time!
Thus my comments to wallabie, whilst tongue in cheek, were based on over 10 years of observation.
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Final 3 greens
Now I know why a Scout leaders' course is so valued on a job application in business
What you're writing seems almost to a word taken from a Scout troop management manual,sensitivity and al.
I submit to you that we in Air France have had the sort of experience you refer to :the integration of UTA (privately owned with an important employees share holding) and Air Inter (ditto but used to a fierce railway competition) has been quite a success in incorporating two vastly different cultures into state-owned ,civil servant staffed AF,don't you agree?
Furthermore,that integration went along with another sense of purpose among the employees (as wallabie said we worked our toush off but we can be proud of what has been achieved).
There is something that you did'nt explicitly list in your post,though;it's called Vision. It is probably due to the lack of it so far that this merger is the first one in Europe.
I believe it will be followed by quite a few others.
Regards.
Now I know why a Scout leaders' course is so valued on a job application in business
What you're writing seems almost to a word taken from a Scout troop management manual,sensitivity and al.
I submit to you that we in Air France have had the sort of experience you refer to :the integration of UTA (privately owned with an important employees share holding) and Air Inter (ditto but used to a fierce railway competition) has been quite a success in incorporating two vastly different cultures into state-owned ,civil servant staffed AF,don't you agree?
Furthermore,that integration went along with another sense of purpose among the employees (as wallabie said we worked our toush off but we can be proud of what has been achieved).
There is something that you did'nt explicitly list in your post,though;it's called Vision. It is probably due to the lack of it so far that this merger is the first one in Europe.
I believe it will be followed by quite a few others.
Regards.
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Here's what The Economist has to say.
I think Final 3 Greens is spot-on with his first comment "integration of two fine national cultures, which are different in some ways", except that I would say "different in most ways". Read Hofstede's "Dimensions of Cultural Difference" (1980) to see what I mean.
I think Final 3 Greens is spot-on with his first comment "integration of two fine national cultures, which are different in some ways", except that I would say "different in most ways". Read Hofstede's "Dimensions of Cultural Difference" (1980) to see what I mean.
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Lemurian
Having had little contact with scouting, I don't know much about the 'best practices' (apart form learning to tie some useful knots as a kid!), but change management isn't rocket science .... just difficult to do well in complex environments.
You probably missed this line about 2/3 down in the post, as the first point about what is required from leaders .....
And it is vital, I agree.
As to Air France, Air Inter and UTA, I don't know much about that operation, but seem to remember that the two companies were acquisitions, rather than mergers? (please correct me if wrong.)
Acquisitions tend to be marginally easier to deal with than mergers and rather easier than joint ventures, because on company has purchased the other and is in a better position to drive the change process.
Some are easier than others, e.g. the BA acquisition of Dan Air, where the alternative to losing much of the Dan Air was to lose all of Dan Air.
A little like in negotiation, when people can focus on the best alternative to the change, it is easier to gain acceptance.
In other words, if you will have no job next week, then you are more likely to accept what you would consider otherwise to be inferior conditions. The great danger for change managers is when people focus on today (which is well known and often comfortable) and then judge the future change against that experience.... resistance is the usual result.
However, none are easy and any well run integration is impressive, so well done to AF if the Air Inter and UTA integratiosn went well
Pax Vobiscum
Hofstede is an excellent reference.
His 1994 work 'Cultures and Organizations; Software of the Mind"\ is a good work too, for anyone on the forum interested in this type of thing.
With regard to the cultures being 'different in most ways', there is a trap that we can fall into of noticing only the cultural differences and not the samenesses.
So yes, some aspects of Dutch and French culture are very different, but many of the underpinning values and behaviours of Af and KL are pretty well aligned, e.g. safety, customer service orientation, flight deck standards excellence.
In this airline oriented context, I'd therefore stand by the 'some differences' view, although at the macro level, there are many differences as you say.
Having had little contact with scouting, I don't know much about the 'best practices' (apart form learning to tie some useful knots as a kid!), but change management isn't rocket science .... just difficult to do well in complex environments.
There is something that you did'nt explicitly list in your post,though;it's called Vision
create a clear and strong vision of where the company is going to
As to Air France, Air Inter and UTA, I don't know much about that operation, but seem to remember that the two companies were acquisitions, rather than mergers? (please correct me if wrong.)
Acquisitions tend to be marginally easier to deal with than mergers and rather easier than joint ventures, because on company has purchased the other and is in a better position to drive the change process.
Some are easier than others, e.g. the BA acquisition of Dan Air, where the alternative to losing much of the Dan Air was to lose all of Dan Air.
A little like in negotiation, when people can focus on the best alternative to the change, it is easier to gain acceptance.
In other words, if you will have no job next week, then you are more likely to accept what you would consider otherwise to be inferior conditions. The great danger for change managers is when people focus on today (which is well known and often comfortable) and then judge the future change against that experience.... resistance is the usual result.
However, none are easy and any well run integration is impressive, so well done to AF if the Air Inter and UTA integratiosn went well
Pax Vobiscum
Hofstede is an excellent reference.
His 1994 work 'Cultures and Organizations; Software of the Mind"\ is a good work too, for anyone on the forum interested in this type of thing.
With regard to the cultures being 'different in most ways', there is a trap that we can fall into of noticing only the cultural differences and not the samenesses.
So yes, some aspects of Dutch and French culture are very different, but many of the underpinning values and behaviours of Af and KL are pretty well aligned, e.g. safety, customer service orientation, flight deck standards excellence.
In this airline oriented context, I'd therefore stand by the 'some differences' view, although at the macro level, there are many differences as you say.
Last edited by Final 3 Greens; 3rd Oct 2003 at 15:18.
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Schiphol becoming a regional airport?
These so called Air France guarantees are soft as hot butter. Guarantees granted by Air France that Schiphol will keep their lucrative intercontinental destinations are subject to the clause that these are in the interest of the shareholders, which are in majority the French State and Air France. No doubt if it's in the interest of AF the majority of shareholders will vote against KLM/Schiphol.
Of the original 58 intercontinental destinies KLM can only continue 42 the next 5 years (if it's in the interest of the shareholders), the other 16 have still to be negotiated. Neither are the frequencies agreed upon, neither are there any agreements about the European network.
Another point, AF has ordered 10 A380's which no doubt will be operating from CDG and will seriously inflect the stream of passengers from ASD. Delivery of the 380 will start in 2007 (5 years from now...).
Schiphol's position has become unclear overight and I abhor the possibility to be forced to fly intercontinental through CDG. I absolutely HATE this apt.
"integration of two fine national cultures" is crap. There will be no integration because Air France owns KLM and we know how autocratic French companies are. Van Wijk after his former merger disasters had to close this deal. His head would have been on the block if it hadn't been. Most mergers are anticipated way to optimistic, I've just seen one gone down the drain completely from one of my business partners, involving a lot of dismissals and loss of capital. I'm very pessimistic about this.
Of the original 58 intercontinental destinies KLM can only continue 42 the next 5 years (if it's in the interest of the shareholders), the other 16 have still to be negotiated. Neither are the frequencies agreed upon, neither are there any agreements about the European network.
Another point, AF has ordered 10 A380's which no doubt will be operating from CDG and will seriously inflect the stream of passengers from ASD. Delivery of the 380 will start in 2007 (5 years from now...).
Schiphol's position has become unclear overight and I abhor the possibility to be forced to fly intercontinental through CDG. I absolutely HATE this apt.
"integration of two fine national cultures" is crap. There will be no integration because Air France owns KLM and we know how autocratic French companies are. Van Wijk after his former merger disasters had to close this deal. His head would have been on the block if it hadn't been. Most mergers are anticipated way to optimistic, I've just seen one gone down the drain completely from one of my business partners, involving a lot of dismissals and loss of capital. I'm very pessimistic about this.
Paxing All Over The World
Just as an observer in this but with 23 years in commerce and working for UK, German, USA and Hong Kong companies and having seen the fall out of international mergers and acquisitions over the years ...
When you want to combine two organisations, irrespective of whether it is a merger or take over, one of the good paths is speed. That is, devise the new plan and get it in place. If people have to go (duplication or other reason) then they must go FIRST. Then gather together all that are left and tell them how much you love them and ask them to love the customer.
Here, the process will be drawn out. Decisions about which people have to go (the back office first) will be delayed. This will dampen the mood of everyone as they wait for the axe to fall. Some will drift away of their own accord but most will cling on, hoping for a pay off or to reach retirement age.
After five years, most of the merger will be deemed a fantastic success and a new livery will be revealed. Meanwhile, thousands of folks will continue to grumble to the press about how bad it is.
Sorry but that seems the most likely. The problem is heightened by the fact that cross border ownership of airlines has been delayed too long. The problems have got very big, so the resolution will not be as simple as it might have been five years ago.
From The Economist (edited): "Air France and KLM aim to create a complicated structure that will protect KLM’s Dutch identity: there will be a holding company of which KLM will be an “independent” subsidiary, if that is not a contradiction in terms."
They go on: "... and there are no redundancies planned, despite both airlines’ bloated staffs. All of this will make it tough to achieve the cost savings that inspired the deal in the first place."
Many countries still see the airline as the highest representation of the country and, consequently, it's take over is seen as losing the 'war' and a national disgrace. It isn't but it seems that way to them.
In another ten years we shall see a truly different set of carriers. Most of which will have new names except that we already know these names. They are:
oneworld
Sky Team
Star Alliance
etc.
As for CDG and AMS, I don't use either very much so am not greatly affected. From all that I read, they both have equal strengths ... at losing your case.
When you want to combine two organisations, irrespective of whether it is a merger or take over, one of the good paths is speed. That is, devise the new plan and get it in place. If people have to go (duplication or other reason) then they must go FIRST. Then gather together all that are left and tell them how much you love them and ask them to love the customer.
Here, the process will be drawn out. Decisions about which people have to go (the back office first) will be delayed. This will dampen the mood of everyone as they wait for the axe to fall. Some will drift away of their own accord but most will cling on, hoping for a pay off or to reach retirement age.
After five years, most of the merger will be deemed a fantastic success and a new livery will be revealed. Meanwhile, thousands of folks will continue to grumble to the press about how bad it is.
Sorry but that seems the most likely. The problem is heightened by the fact that cross border ownership of airlines has been delayed too long. The problems have got very big, so the resolution will not be as simple as it might have been five years ago.
From The Economist (edited): "Air France and KLM aim to create a complicated structure that will protect KLM’s Dutch identity: there will be a holding company of which KLM will be an “independent” subsidiary, if that is not a contradiction in terms."
They go on: "... and there are no redundancies planned, despite both airlines’ bloated staffs. All of this will make it tough to achieve the cost savings that inspired the deal in the first place."
Many countries still see the airline as the highest representation of the country and, consequently, it's take over is seen as losing the 'war' and a national disgrace. It isn't but it seems that way to them.
In another ten years we shall see a truly different set of carriers. Most of which will have new names except that we already know these names. They are:
oneworld
Sky Team
Star Alliance
etc.
As for CDG and AMS, I don't use either very much so am not greatly affected. From all that I read, they both have equal strengths ... at losing your case.
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Paxboy
I had the good fortune to listen to a very experienced M&A man talking about this very facet.
The reckoned that speed was the absolutely crucial driver in delivering benefits - you observations align with what he said precisely.
Kwasi Mensa
No it is not. To leverage the benefits, you have to integrate.
However, integration is not the sunny uplands of contentment.
irrespective of whether it is a merger or take over, one of the good paths is speed
The reckoned that speed was the absolutely crucial driver in delivering benefits - you observations align with what he said precisely.
Kwasi Mensa
"integration of two fine national cultures" is crap.
However, integration is not the sunny uplands of contentment.
Paxing All Over The World
F3Gs, thanks for that. Having been in Telecommunications and IT for many years, we were at the sharp end of this process! Sometimes, the benefits were by linking the technology and cutting the people or just cutting the people! In technology, I have worked in retail, government, freight transport (air and sea), banking, agri-business, pharma and others. I have no doubts that the air line business will be subject to the same problems.
Other airlines will be watching closely to see the mistakes and learn from them, as the consolidation gets under way. With regards to speed, when BA was getting ready for sell off, I understand that the process was I mentioned in my earlier post: Complete the deal. Cut the staff heavily. Love them. Get them to love the customer. (I sit to be corrected)
From what I saw of BA as a customer - it worked. It is on this that I predict the final 'medicine' required for AF/KL will be worse than if folks were tough now. If humans have decided that financial targets are the ones by which we wish to live, then national pride is going to meet the money head-on.
Whilst the parties may say that this is a new experiment - it isn't. Cross border partnerships and take-overs have been happening for many years. BMW and Rover failed in cross border cultural exchange. I worked for both nationalities and was not surprised. I have never worked for the French or Dutch, so cannot say if they will encounter similar problems. However, this deal is being driven by a fear of being the next Sabena or Swiss, rather than more positive ideas.
If I was a small fish in either company, I'd probably just hang on in or find another job. The pay-offs are too far away to make it worth waiting for them. Sorry to be so negative, I have no doubt that many decent people will be hurt in the next few years.
Other airlines will be watching closely to see the mistakes and learn from them, as the consolidation gets under way. With regards to speed, when BA was getting ready for sell off, I understand that the process was I mentioned in my earlier post: Complete the deal. Cut the staff heavily. Love them. Get them to love the customer. (I sit to be corrected)
From what I saw of BA as a customer - it worked. It is on this that I predict the final 'medicine' required for AF/KL will be worse than if folks were tough now. If humans have decided that financial targets are the ones by which we wish to live, then national pride is going to meet the money head-on.
Whilst the parties may say that this is a new experiment - it isn't. Cross border partnerships and take-overs have been happening for many years. BMW and Rover failed in cross border cultural exchange. I worked for both nationalities and was not surprised. I have never worked for the French or Dutch, so cannot say if they will encounter similar problems. However, this deal is being driven by a fear of being the next Sabena or Swiss, rather than more positive ideas.
If I was a small fish in either company, I'd probably just hang on in or find another job. The pay-offs are too far away to make it worth waiting for them. Sorry to be so negative, I have no doubt that many decent people will be hurt in the next few years.
With limited, but some, experience in M&A, I can see the next few years being very challenging for the new entity. The multi-national aspect makes the job harder.
What no-one on this thread has mentioned is how the real competitors will react. I mean FR and EZY. The latter has small operations at both CDG and AMS, and they must be licking their lips at the thought of any errors in KL/AF delivering more pax to them.
If I was an orangeman, I'd be looking at putting some of my shiny new 319s into AMS to challenge KLM on its most lucrative trunk routes.
Even if AF and KLM get it right, the necessary introspection a merger creates will take management eyes off the ball to some extent, and there are lots of new hungry locos out there...
What no-one on this thread has mentioned is how the real competitors will react. I mean FR and EZY. The latter has small operations at both CDG and AMS, and they must be licking their lips at the thought of any errors in KL/AF delivering more pax to them.
If I was an orangeman, I'd be looking at putting some of my shiny new 319s into AMS to challenge KLM on its most lucrative trunk routes.
Even if AF and KLM get it right, the necessary introspection a merger creates will take management eyes off the ball to some extent, and there are lots of new hungry locos out there...
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F3G
I will throw into the conversation the following- there is not much functional difference between a merger and an acquisition- almost always somebody get's the short or shorter end of the stick. But let's hope I'm wrong.
I will throw into the conversation the following- there is not much functional difference between a merger and an acquisition- almost always somebody get's the short or shorter end of the stick. But let's hope I'm wrong.
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OldAg84
In my experience there are only really acquisitions and joint ventures.
Mergers inevitably get driven by the dominant pary, as you imply, but often get distracted by the need to be seen to bbe acting in the spirit of the merger - e.g. balancing the allocation oef executive and management roles.
JVs are a potential nightmare, with the vested interests of the partners impacting on the new organisation too.
LGS6753
Agree that introspection is inevitable - and it is a cruel world out there.... however, if they do get it right - it will be a strong outfit, so lots of risks and potential benefits to juggle
In my experience there are only really acquisitions and joint ventures.
Mergers inevitably get driven by the dominant pary, as you imply, but often get distracted by the need to be seen to bbe acting in the spirit of the merger - e.g. balancing the allocation oef executive and management roles.
JVs are a potential nightmare, with the vested interests of the partners impacting on the new organisation too.
LGS6753
Agree that introspection is inevitable - and it is a cruel world out there.... however, if they do get it right - it will be a strong outfit, so lots of risks and potential benefits to juggle