"The new American could be a dream come true if it chooses to take the actions that'll make it real."
American Airlines CEO Tom Horton (L) and US Airways CEO Doug Parker at the airline merger announcement at Dallas-Fort Worth International Airport (Photo: Los Angeles Times) |
Baskin concludes with this: "Past experience is that big mergers end up being nightmares for most everyone involved, except those profiting from their implementation." Some of us have a long memory: the Ciba-Geigy and Sandoz in 1996 to create Novartis was not only a success corporate merger, fairly universally recognized as good for everyone, but also spurred an industry re-branding away from drug or pharmaceutical companies to a "healthcare" industry. Exxon-Mobil in 1999 didn't do badly for itself either. Even, for all the mishegas of the recession, the JPMorganChase merger of 2005 still looks pretty good -- as a brand as well as an enterprise. The question of what makes a big-merger brand success needs a bit more exploration and evidence.