Air France-KLM

17 Pages 4298 Words

MARY

This business case offers us the opportunity to analyze the strategic goals of KLM and possible implications that the merger will have on KLM’s future settings and objectives, ass well as any difficulties that have to be overcome by KLM and her suitor, Air France in tying the knot. Therefore we aim to describe the economic, governance and other factors that drove both companies to search for partnership, and to conduct research into the governance choices made in the face of these factors. Furthermore we wish to gain insight into the pitfalls that are met during mergers and acquisitions. Consequently, we try to find out to what extent these findings apply to KLM’s situation and to what extent they can be applied to the airline industry or mergers in general. Ultimately we will conclude with the possible corporate advantage that can be attained by the merger in the light of these pitfalls, i.e. how these pitfalls hinder the creation of corporate advantage.

In our analysis of the merger and its pitfalls we will rely on theoretical...