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Southwest airlines to buy AirTran

Read the article Southwest Airlines to buy rival US carrier AirTran (you can do this in the window below or follow the previous link to read the article in a separate window) and then consider answers to the questions below.


You may also like to read a further article on the joint venture:

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For more background information on the airline industry you may want to watch these short videos from CNN:


Question 1

Define the terms 'merger' and 'takeover' and explain which of these terms would be most appropriate to describe Southwest Airlines and AirTran.

Question 2

Explain four consequences of the acquisition.

Question 3

Analyse methods by which Southwest Airlines has attempted to differentiation itself from its competitors.

Question 4

Evaluate external growth as a method of achieving Southwest' Airline's growth objectives.