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November 17, 2006

Company Naming: Does Bigger Equal Better?

Muara Teweh points out the following today on her Education Information blog:

US Airways“If US Airways succeeds in buying Delta Air Lines, the giant that would emerge would retain the Delta name and be the largest airline in the country, with annual revenues of about $28 billion and service to 350 cities on five continents.”

Her blog post elegantly points out that in the airline business, bigger is not always better for either passengers or staff. In fact, there is much glumness out there about the merger. The Airline Bulletin has an interesting post up today entitled The Messy Mechanics of the US Airways-Delta Merger.

DeltaIn short, there is a fear that this will create an “East Coast powerhouse” that will force higher fares and employee lay-offs. US Airways and America West Airlines pilot groups picketed in Charlotte and Phoenix against the creation of a juggernaut company that some are saying will be the world’s “largest bankrupt airline.”

If the merger does go through, it is sure to be met with suspicion by travellers and workers alike, not to mention potential shareholders.

But mergers seem to be so popular today.

MotorolaMotorola, for instance, has announced that it will snap up Good Technology, which produces software that allows companies to “push” email to mobile devices.

Neil Thompson at ITPro applauds this move, which “makes absolute sense to both parties” and is further proof that Motorola is shooting to be a major player in the mobile technology world. As Thompson points out, their recent buyout of Symbol Technologies was the precursor to this yet bolder transaction.

Symbol TechnologiesBut a few people have noted that the Motorola-Symbol Technologies merger has led to some interesting naming dilemmas - specifically, how to rename executive bonuses so they do not rankle so much with beleaguered shareholders. They are now to be referred to as “separation payments” or else “transaction bonuses.”

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Posted by William Lozito at November 17, 2006 9:40 AM
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I suspect that one reason why bigger does not result in better is that "better" is not the real reason for the merger. Something else is going on. The impact on customers and employees is not the outcome driving the action.

And the naming dilemmas surrounding executive bonus payments is a "hoot".

Always get a lot of good from your observations and take on the crazy world of business, names and people. Thanks for stirring out minds out here in the blogosphere!

I agree, Mike!

Please write more about this!
Agreed. Long haul flights in economy are just not something I look forward to.

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