Hrm 587 the Change Analysis - Images of Change

Brandon Story

HRM 587

Professor

Week 2

Images of Change 

March 11, 2015

Change frequently occurs in a company. That change can manifest itself in a change in leadership-like a new CEO, downsizing due to structural reordering, or acquiring new companies to improve business output and diversifying ones product line. From an employee (and for some members of management) standpoint change can cause fear and stress, because change shakes people from where they were comfortable and it asks them to do something different, something they may be uncomfortable with-however, the only constant in life (both personal and professional) is change. For my project, I have selected two companies that have under gone changes throughout the past year: American Airlines and US Airways. These two companies recently merged to form one of the largest airlines after American Airlines filed for bankruptcy. We will be reviewing some of the changes that have occurred to both companies through the merger and a few now that the merger is complete.

In February 2013, American Airlines and US Airways announced plans to merge, creating, by some measurements, the largest airline in the world. In the deal, which was expected to close in the third quarter of 2013, stakeholders of AMR would own 72% of the company and US Airways shareholders would own the remaining 28%( Chicago Tribune Company, 2014). The combined airline will carry the American Airlines name and branding; the holding company will be renamed American Airlines Group Inc. The US Airways' management team, including CEO Doug Parker, will retain most operational management positions. The headquarters for the new airline will also be consolidated at American's current headquarters in Fort Worth, Texas(Charlotte Business Journal, 2012). US Airways will exit Star Alliance upon completion of the merger, and American will retain its Oneworld alliance. Judge Sean Lane approved the merger on March 27, 2013, but declined to approve a...