The Research Of Airlines' Mergers & Acquisitions Performance Based On Integration Of The Value Chain

In recent years,global transaction scale and activity level of mergers and acquisitions have been raised off the floor,however,domestic and international studies found that about 70% of the world's mergers and acquisitions did not bring about the expected performance to enable enterprises to develop better.Research on the causes of the failure of mergers and acquisitions showed that poor consolidation was the main cause of the failure of M&A;this is also the case in the civil aviation industry with frequent M&A activities.The value chain theory shows that enterprise's value appreciation is influenced by the various activities on its value chain,so the effective integration of activities on the value chain after acquisition transaction can be an important way for enterprises to realize the value increment and enhance the performance of M&A.Then we should know that different integration operations of various activities on the value chain cause different effects on the performance of M&A during the integration process after acquisition transaction.In this paper some research results about the value chain,post-acquisition integration and the performance of M&A have been discussed,and the theoretical basis has also been elaborated,then we discussed the relationship between the value chain integration and the performance of mergers and acquisitions.Based on the method study on evaluating the performance of mergers and acquisitions in this field,the evaluation system of airlines' performance of M&A is constructed.Based on that,domestic and international airlines occurring mergers in 1997-2015 have been selected as samples for empirical multivariate regression analysis,to study how the specific activities on the value chain which includes procurement management,enterprises infrastructure,human resources management,technology development and management,brand management,marketing management and service management affect airlines' performance of M&A.The empirical results show that unified procurement management for the two side airlines can be conducive to the improvement of M&A performance both in the short term and in the long term,it is also true for unified marketing system;planning the fleet and adjusting transport capacity in a unified way can only support the performance achieving in the short term;sending executives to target firms and improving wages of the core staff brought about poor performance in the short run,this condition can be better in the medium to long term,which played a very limited role in improving the performance,though;the improvement of training cost is helpful to the realization of M&A performance,which presents a lasting effect;managing the technicians of the two sides and sharing technical resources in a unified way can continuously improve the performance.Retain the brand of the target airline or not? Manage code sharing in a unified way or not? It is not clear that which way can do better to the performance with this econometric model.Thus,corresponding suggestions are as follows: unify procurement management and share procurement system and resources of the two side airlines;fully consider the matching of network and revenue of the whole network for effective fleet integration;coordinate the relationship between executive mission,core staff incentive and integration cost;unify technology management of the two airlines and share technical resources to improve airlines' overall technical capability;manage marketing system of the two in a unified way to enhance the control of marketing channels.