Corporate Mergers – Where Do the Brands Go?

During the previous decade, the travel industry entered a period of Darwinism. Survival of the fittest became the reoccurring theme and that resulted in a number of large mergers. Acquisitions were not frequent due to frozen capital markets in the Great Recession and fear over where the global economy was headed. As the travel industry contracted and new brands emerged where the did the previous ones go? And what exactly happens to brand recognition during the merger?

Airline mergers are a great example because of their size and impact on the whole travel industry. Remember America West? They became part of US Airways. How about Northwest Airlines? They are now part of Delta Air Lines. Continental has recently begun is rolling itself into United Airlines.

While the airlines try to limit confusion during the conversion process, brand managers know that featuring the best of each individual brand often works best. For example, Delta took what they felt were the best parts of both Delta SkyMiles and Northwest’s WorldPerks and developed one that both client bases would enjoy. The new United is adopting Continental’s most recent livery while keeping the name “United” on their jets.

I think brands take their place in history and never really evaporate. Use the link below to see the Delta Air Lines family tree and the parts of it’s sum:

http://blog.delta.com/2009/06/17/we-love-to-fly-celebrating-80-years-of-nonstop-service/

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