Justice Department challenges airline...

Justice Department challenges airline merger

There are 4 comments on the Boston.com story from Aug 13, 2013, titled Justice Department challenges airline merger. In it, Boston.com reports that:

The federal government is challenging the proposed merger of American Airlines and US Airways, saying it would cause ''substantial harm'' to consumers by leading to higher fares and fees.

Join the discussion below, or Read more at Boston.com.

Since: May 08

Santee CA

#1 Aug 13, 2013
If you can afford to give TH $20 million to leave merge and leave BK, you can surely afford to donate some to .......... Love DOJ.
JetBlast

Perry, MI

#2 Aug 13, 2013
I'm guessing that AA/US refusal to divest any DCA slots was the real kicker to this. You can't expect to own 69% of slots at a slot-controlled airport and not get any resistance from regulators.

I have a feeling that they will eventually end up negotiating quite a few more slots giveaways than they could have got by with had they offered to give them up last week.

AA ordering (and bragging about) over 460 new aircraft orders, while in BK, probably didn't do much to prove their point that they needed the merger to survive.

Since: May 08

Santee CA

#3 Aug 13, 2013
JetBlast wrote:
I'm guessing that AA/US refusal to divest any DCA slots was the real kicker to this. You can't expect to own 69% of slots at a slot-controlled airport and not get any resistance from regulators.
I have a feeling that they will eventually end up negotiating quite a few more slots giveaways than they could have got by with had they offered to give them up last week.
AA ordering (and bragging about) over 460 new aircraft orders, while in BK, probably didn't do much to prove their point that they needed the merger to survive.
The judge had to ok the orders in BK. The justification was fuel economy. Ironically it was the DOJ that approved the slot swap with DL that gave US control over DCA.(they have over 50% without AA). You are right though, you open your mouth now a days and someone has it recorded and on youtube or FB in minutes. That and AA has BS'd the government so much trust isn't there. You can give up a hand full of DCA slots and still make a fortune.
Merger Mania

United States

#4 Aug 14, 2013
It is obvious, NOW.

UA and DL are the big players

AA US and WN are the semi big players

and now it is time for

AS HA or F9 to get bigger or become substantial enough large enough so at the end we have

2-3 truely global worldwide airlines left and
DL UA (AA) or maybe even and preferably (US +??)

3-4 North American airlines with global growth aspirations

WN (AS +??)(B6 +??)(HA +??) or (F9 +??)

in the end there will probably be rooom for only
5 but hopefully 6 or 7 major airlines so competition is maintained. However we are still left with the fact that US needs a merger and AA is the smallest of the Airline Alliance groups and will need to find a way to get bigger in its major markets too.

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