Ib_business_management_-_1.6c_activity_-_growth_and_evolution.pdf

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IB Business Management Business Organisation and Environment 1.6C: Growth and Evolution: Activity IB Business Management : www. Business Management IB .com 1.6 GROWTH AND EVOLUTION: ACTIVITY C Read the case study information below and answer the questions that follow. GROWTH STRATEGIES Jet Airways takes over Air Sahara India s largest private airline, Jet Airways, says it has agreed to buy its smaller rival, Air Sahara, for $140 million. The takeover gives the airline a combined market share of 32%. Jet Airways acquires the aircraft, equipment and landing and takeoff rights at t he airports Air Sahara had. “The deal is definitely going to be good news for Jet Airways shareholders”, Jet Airways founder and chairwoman, Indira Goyal said. Some analysts are predicting substantial synergy (cost reductions and other benefits) from this takeover. Better deals from aircraft manufacturers are expected. Streamlining the two head offices into one unit should reduce fixed costs. The interlinking of the different air routes should allow more passengers to
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