Mergers and acquisitions have been a growing trend in the airlines industry during all these years. As reported, American Airlines and US Airways have cleared the last major hurdle to merging days ago. However, many people are still worrying about such changes among airlines companies and hoping they can get as less loss as possible.

In fact, mergers and acquisitions benefit both airlines companies and customers. Not only do they expand the scope of services, but also they can bring the two companies more revenues than before by raising the ticket price and offering more flights in the new services scope. Take American Airlines and US Airways as an example—US Airways passengers will gain access to American’s international destinations, particularly London and Latin America. American’s passengers will be able to better connect to smaller U.S. cities that US Airways serves. However, it’s common that merged companies push up the airfare because of less competitions.

Before merging with each other, airlines companies need to pay great attention to some specific elements. One is to check the scope of services for both companies to avoid overlap because overlap in the airlines companies will make mergers and acquisitions less profitable and companies may suffer huge loss. The other is to avoid merging with companies that have bad reputations, or it will bring the loss of customers.