4/22/2021
Gateway - SCS Mock 1 Debrief
Strategic benefits of Merger
• •
There may also be revenue enhancing
synergies (cross -selling opportunities
generating new revenue streams)- e.g.
Offering Skylaine customers landing
slots in Arrfield airports in which there
is spare capacity at attractive prices as
well as offering Arrfield customers
slots in Skylaine airports, without
incurring significant additional costs
© Peter Plant - First Financial Training
Gateway - SCS Mock 1 Debrief
Strategic benefits of Merger
• Optimises the use of the recent
upgrade in IS/IT /IM by Skylaine can
be exploited by rolling it out across
the Arrfield airports.
• There is already evidence of potential
Shareholder wealth enhancement
(Increase in PAT N$400m - total
group PAT= $1,465m + $551m +
$400m = N$2,416m), which is likely to
be reflected in the post-merger share
price
© Peter Plant - First Financial Training
Strategic Benefits of Merger
Acquisition & integration of Skylaine
will also reduce competition with
increases in future revenue streams
possible. The ability of Airlines to
create price/service competition
between Arrfield & Skylaine will be
eliminated
• Skylaine has a strategically located
airport within 50 miles of the Capital
City. This could have the potential to
add extra capacity to the capital
(provided enhanced infrastructure can
be put in place).
Strategic benefits of Merger
• Enhanced knowledge capital - the
combined experience of the two
boards & senior management teams
should improve the overall business
• Enhanced relationship capital -
Skylainey will has developed
relationships with other Norland
Regional Development Authority etc. &
other corporate clients to add to the
Arrfield's relationship portfolio etc.