As US Airways shares rally, AMR merger may be more likely, Bloomberg reports

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PilotAction Merger News for US Airways & American Airlines: September 20, 2013

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As US Airways shares rally, AMR merger may be more likely, Bloomberg reports

See Story: http://finance.yahoo...-111933943.html


AMR, US Airways Seek U.S. Data on Airline Deal Approvals

The Justice Department, which sued the airlines in August, has refused to turn over records about its approval of previous airline deals such as the 2010 United Airlines-Continental Airlines merger, the companies said in a court filing today in federal court in Washington. “Even more remarkable than DOJ’s abrupt and unexplained reversal is the fact that it contends that the dramatic change in its view of consolidation in the airline industry is off-limits in the discovery process here,” they said.

See Story: http://www.bloomberg...html?cmpid=yhoo


US Airways and American Airlines to DOJ: Show us your papers from four previous mergers

“DOJ seeks to prevent Defendants from learning the facts on which it approved the other four mergers. But DOJ cannot assert that the American-US Airways merger should be blocked because it could cause the same results as the prior mergers, and, at the same time, contend that those mergers have no relevance here. Plaintiffs raised this line of inquiry themselves, and the discovery sought will be used to demonstrate that this merger offers significant procompetitive benefits. Accordingly, Plaintiffs should be compelled to provide the requested discovery.”

See Story: http://aviationblog....s-mergers.html/


NOTICE OF SUBMISSION TO SPECIAL MASTER OF DEFENDANTS’ MOTION TO COMPEL PRODUCTION OF FACTUAL MATERIALS AND INFORMATION REGARDING DOJ’S APPROVALS OF FOUR PRIOR AIRLINE MERGERS: September 20, 2013

See Story: http://blogs.star-te...document-84.pdf


Airline Employees See Big Gains in Merger

See Story: http://www.kjzz.org/...ig-gains-merger


AA, US Airways Rally Video & Interview with APA Vice President Neil Roghair

See Story: http://www.myfoxdfw....&autoStart=true


Fly In Rally Photo Gallery Now on Wings

TEMPE (US Daily) - More than 300 US Airways and American Airlines employees gathered on Capitol Hill earlier this week to urge elected leaders and the DOJ to "Let us compete. Together." Speakers included members of Congress and union leaders. Leading up to the rally, hundreds of pilots, flight attendants, gate agents, baggage handlers and other employees from the two companies traveled to Washington, D.C. to meet with more than 300 members of Congress to discuss the benefits of the proposed combination of American Airlines and US Airways. To view the photos from the rally please click here.


APA Latest Q&A's: September 19, 2013

As APA continues receiving questions regarding contract implementation-related issues, the American Airlines-US Airways merger, monetization and distribution of the equity stake and other timely topics, our subject-matter experts (SMEs) will continue providing answers. Here are the latest questions your APA leadership has received, along with answers from the appropriate SME.

Q: If I have a direct conflict with a sequence in the next month and the sequence drops, am I pay protected?

A: No, there is no sequence protection for a sequence dropped in the next month as a result of a direct conflict with a sequence from the previous month. In such cases the Company does not have the right to give you a recovery obligation.

Q: I was unable to pick-up (make-up in the old agreement) a fly through trip at the end of the month because it made me illegal for my first trip of next month. We could do this in the past. Has this changed with our new contract?

A: Yes, per Section 15. L. 5. c., pilots may not pick up open time in the current month that would create a conflict with a sequence in the current month or subsequent month unless such transaction is permitted by TTS or Crew Schedule.
 
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usa in your opin how damaging is that against either the airlines or the doj and in favor etc and also how relevant is it for this it seems to me that it might be a factor or it might be more
 
PilotAction Merger News for US Airways & American Airlines: September 20, 2013

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US Airways and American counterpunch with the DOJ
  • US Airways and American Airlines turned up the heat on the DOJ in court today as lawyers for the carriers argued that the government has approved similar mergers to the US Airways-American combination before.
  • What to watch: If a deal is worked out in advance of more courtroom action, airline watchers think the divestiture of landing slots at Ronald Reagan National Airport will be integral.

US Airways, American push back on Justice Department merger lawsuit

The motion for the material, which could be quite extensive, will likely be granted, said Robert Skitol, an antitrust expert with Drinker Biddle & Reath LLP. "There's no doubt about it being very burdensome," said Skitol. "This is very resource-intensive."

See Story: http://finance.yahoo...-183349553.html


Airlines want to know why US OK'd previous mergers

The carriers want to know why regulators approved four deals — Delta-Northwest, United-Continental, Southwest-AirTran and US Airways-America West — but now argue that the American-US Airways merger would hurt consumers.

See Story: http://finance.yahoo...-191752860.html


The Deal: An Unscheduled Departure

There remains a widely held belief inside the industry that the DOJ has a weak case. Attorneys for the airlines, echoed by industry analysts and pundits, have loudly trumpeted what they see as flaws in the government's arguments that they say make going to court a poor option for regulators.

See Story: http://www.thestreet...-departure.html


International Air Transport Association (IATA) Director & CEO Defends American Airlines and US Airways Defends Merger

See Story: http://www.internati...ds-merger-96909


IATA DG weighs in on US DOJ AA/US Airways merger lawsuit

See Story: http://atwonline.com...-merger-lawsuit
 
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usa in your opin how damaging is that against either the airlines or the doj and in favor etc and also how relevant is it for this it seems to me that it might be a factor or it might be more

Robbed,

I'm not sure the lobby campaign rally will effect the DOJ's thinking one way or another. I do believe the two-day event raised awareness of the merger's importance on Capital Hill and within the Executive Branch of the government from the eyes of the employees. Labor leaders met with members of the Justice and Labor Department's Senior Executive Service to voice labor's view. And, a letter is being floated through the Senate and House seeking hundreds of congressional signatures supporting the deal, which will be sent directly to President Obama.

In addition, I believe it is noteworthy that today International Air Transport Association Director (the international airline trade group) and CEO Tony Tyler spoke in favor of the merger at today's Wings Club luncheon/meeting at the Yale Club in New York City. The Wings Club proclaims itself as "The Premier Global Society of Aviation Professionals and the Leading Forum for Aerospace Issues." With the world's leading airlines supporting the deal I believe industry, political, and labor (including the AFL-CIO) support for the proposed corporate transaction is growing.

In my opinion, if the two companies push too hard the DOJ may fight the merger even more, which is why a rally with a measured amount of employee participation may have been the best approach. Certainly, Asst. AG Bair knew what was happening at the Capital Building with his office a few blocks west of the rally on Pennsylvania Avenue.

One more point on the IAM's strategy to not support the merger. A combined AA-US Airways will have higher margins to support better union contracts. Does it not make sense for all of the unions to support the proposed merger so the New American Airlines can afford richer union contracts? I don't want this thread to to degrade into another union contract or SLI debate. But, I do want to point out this important thought because I too want to see IAM members get an improved contract sooner-than-later.

I hope this thread remains about proposed merger related news and discussion and not morph into labor issues.

Regards,

USA320Pilot
 
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i do agree with you usa320 that this should stay as merger and i see your point n understand it regarding the iam as far as im concerned i wish we get new contracts even if its 2 yr deal and then do transition agreement which would yield higer wages and better benes etc... i read the articles and it sounds like it might be a slam dunk by no one knows what the doj might have up their sleeves.. also does the iata have any kind of power to help push or no?
 
i do agree with you usa320 that this should stay as merger and i see your point n understand it regarding the iam as far as im concerned i wish we get new contracts even if its 2 yr deal and then do transition agreement which would yield higer wages and better benes etc... i read the articles and it sounds like it might be a slam dunk by no one knows what the doj might have up their sleeves.. also does the iata have any kind of power to help push or no?

Robbed,

IATA is the international extension of the U.S. based Airlines for America (A4A), which was formerly known as Air Transport Association of America, Inc. (ATA). These organizations are made up of the airlines and represent corporate or company views where the airlines lobby together. These organizations band together to lobby for programs that benefit the companies as a whole. I think it's just one more important lobby group that supports the deal because IATA believes it will benefit the industry by creating more stability, which cannot hurt.

I find it interesting that IATA, ATA, the AFL-CIO, a large number of Senators and Congressman, local politicians, the U.S. Bankruptcy Court, and the majority of both airline's labor groups/non contract employees support the proposed deal. This is unprecedented.

Regards,

USA320Pilot
 
yet those organizations and other airlines have NOT said they support the merger UNCONDITIONALLY.

AA and US have argued for months that other airlines merged and they should get the opportunity to do so. Antitrust law does not work that way and the DOJ spelled out a number of reasons why they found fault with the AA/US merger that weren't issues with previous ones.

The DOJ will ultimately show their documents but it might come during the trial. The worst that can happen from their perspective is that the judge tells them they have to provide the documents, they argue they cannot provide them and meet the deadline of the trial, and they ask for delays which end up getting denied. Either way, they slow AA and US' ability to prepare.


They are slowing the process down to force a trial and to gain more leverage in a settlement.

This stuff isn't unique to this trial or even the DOJ.
 
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wt while i do think that eventually the doj and the 2 airlines may in fact settle its just a matter of when... also due to the judge schedy and with the holidays coming fast with a nov 25 id imagine that it be mighty harder for the doj to do much considering the articles but i do see where youre coming from with what your saying i think its gonna be very interesting to see what happens over the next number of weeks
 
PilotAction Merger News for US Airways & American Airlines: September 21, 2013

US-AA-family-button.jpg


Airlines want to know why US OK'd previous mergers

See Story: http://finance.yahoo...-191752860.html


American Airlines doesn’t want a too-speedy trial in private antitrust lawsuit

See Story: http://aviationblog....t-lawsuit.html/


Arrivals (American Airlines & US Airways' Weekly Newsletter): September 20, 2013

See Story: http://newamericanar..._20_Edition.pdf


APFA Hotline (DOJ Update, DC Fly-In, Capwiz, W9s and Threshold Details): September 21, 2013

AA/US Airways Merger News

Today, legal counsel for AA/US Airways in the antitrust lawsuit filed a motion with the court seeking DOJ documents from past mergers. Despite previous requests for specifics on the four previous successful airline mergers, the DOJ has not been forthcoming. To read the Motion, click here:

A particularly interesting article from McClatchey sums up the Motion in detail:

"American Airlines and US Airways want the Justice Department to explain why it approved four previous mergers but filed an antitrust suit to block theirs.

The airlines sought in a federal court filing Friday to force DOJ to turn over documents related to those mergers. In the 111-page motion, the airlines accused the government of "a dramatic change in its view of consolidation."

American and US Airways also wondered, incredulously, why the Justice Department considered the documents in the previous four mergers "off-limits" in the current case.

"DOJ seeks to prevent Defendants from learning the facts on which it approved the other four mergers," the motion said.

The government filed suit last month against the $11 billion deal, which would create the world's largest airline. The case is scheduled to go to trial in federal district court in Washington in late November.

An excerpt from the motion:

"Over the past eight years, DOJ has approved four airline mergers similar to the one at issue here. Each time, DOJ issued press releases explaining that, after careful consideration, it had determined that the merger would enhance competition in the airline industry and benefit the traveling public.

"Those mergers—the 2005 US Airways-America West Airlines merger, the 2008 Delta Air Lines-Northwest Airlines merger, the 2010 United Airlines-Continental Airlines merger, and the 2011 Southwest Airlines-AirTran merger—spurred competition and allowed United and Delta to create broad airline networks with global reach.

"But in the Amended Complaint, DOJ alleges that those mergers “hurt passengers” and that the American Airlines-US Airways merger would exacerbate the harm caused by the previous mergers.

"Even more remarkable than DOJ’s abrupt and unexplained reversal is the fact that it contends that the dramatic change in its view of consolidation in the airline industry is off-limits in the discovery process here. DOJ seeks to prevent Defendants from learning the facts on which it approved the other four mergers.

"But DOJ cannot assert that the American-US Airways merger should be blocked because it could cause the same results as the prior mergers, and, at the same time, contend that those mergers have no relevance here. Plaintiffs raised this line of inquiry themselves, and the discovery sought will be used to demonstrate that this merger offers significant procompetitive benefits. Accordingly, Plaintiffs should be compelled to provide the requested discovery."

Below are some of the most recent news articles this week.

AMR, US Airways Seek Records on Past Airline Merger Approvals (Bloomberg) - 9.20.13
Papers, please: Airlines demand documents from Justice Department (McClatchey) - 9.20.13
IATA DG weighs in on DOJ AA/US merger lawsuit (ATWonline) - 9.20.13
US Airways/American Workers' Merger Blitz Is Unique, Expert Says (The Street) - 9.20.13
AA US Airways employees lobby in DC for merger (Ft. Worth Star Telegram)- 9.19.13
AMR-US Airways Unions Meet U.S. Official on Merger Suit (Bloomberg Businessweek) - 9.18.13
US Airways, American Airlines looking for merger support on Capitol Hill (Charlotte Business Journal) - 9.17.13
DOJ Airline Lawsuit Is Much Ado About Nothing (The Motley Fool) - 9.16.13

To review documents and news related to the AA/US Airways merger, click here
To reach out to your Senators, Representative and the U.S. Attorney General, click here.


Merger Fly-In

This week, APFA members and union leaders along with APA, TWU and US Airways' unions and employees took to Capitol Hill to meet with Congressional leaders and voice our support for the merger. The message, "Let us compete, together" was shared in more than 300 different meetings in House and Senate offices throughout both days.

While in Washington, APFA President Laura Glading, along with presidents from several other unions, met with Assistant Attorney General William Baer, head of the Justice Department’s antitrust division. Laura reiterated to the Ass't AG that this merger is the only path to long-term viability for our airline which is why consumers and employees alike will benefit from it.

The events culminated in a widely attended and well-covered press conference in front of the Capitol at which representatives of both companies, the various unions, and members of Congress voiced their support. Among the distinguished guests were: Rep. Marc Veasey (D-TX), Rep. Michael Burgess (R-TX), Rep. Robert Brady (D-PA), Rep. Ed Pastor (D-AZ), Rep. Eddie Bernice Johnson (D-TX), Rep. Pat Meehan (R-PA), , Rep. Robert Pittenger (R-NC), and Rep. Joyce Beatty (D-OH).



Thank you to all the APFA members who participated and helped make the event a tremendous success. To see photos and read stories about this event, visit APFA's Facebook and Instagram pages.

W-9 and the Equity Claim

There are still about 800 FA who have yet to certify their W-9 form. AA has chosen to extend the deadline for now, however, your W-9 must be completed prior to the distribution of shares (which will not happen until AA exits bankruptcy). This, in order to avoid extra deductions from your equity claim payout.

To fill out your W-9, visit www.retireonline.com. If you've already completed your W-9 with Computershare, either recently or in connection with a different distribution, there is no need to re-certify since a W-9 does not expire. Visit APFA's equity claim page for more information.

Thresholds: Employment, Sick, Vacation and Health

Due to the likelihood that we may not see a merger between AA and US Airways prior to December 31, 2013, all FAs should be focused on meeting the current thresholds as outlined in the LBFO.

Employment Threshold: You must have 420 paid hours (or an average of 35 paid hours per active month) during the 2013 calendar year.
 


Sick and Vacation: You must have 600 paid hours (or an average of 50 paid hours per active month) during the 2013 calendar year.
 


Health Benefits: Due to the delay of the merger, the decision has been made not to apply the July 31, 2013 look back for 2014 Health Benefits. Rather the threshold for benefits will remain the current 420-paid hours (or an average of 35 hours per active month) on a rolling 12-month look-back basis.


AmericanAirlines + US Airways
"MERGE!"

Leslie Mayo
APFA National Communications Coordinator
 
I'm not a lawyer but th following paragraph is included in the DOJ's press release about the DL/NW merger and may provide some reason why they could argue they do not have to provide all of the information AA/US is requesting.....

“The Division provides this statement under its policy of issuing statements concerning the
closing of investigations in appropriate cases. This statement is limited by the Division’s obligation
to protect the confidentiality of certain information obtained in its investigations. As in most of its
investigations, the Division’s evaluation has been highly fact-specific, and many of the relevant
underlying facts are not public. Consequently, readers should not draw overly broad conclusions
regarding how the Division is likely in the future to analyze other collaborations or activities, or
transactions involving particular firms. Enforcement decisions are made on a case-by-case basis, and
the analysis and conclusions discussed in this statement do not bind the Division in any future
enforcement actions. Guidance on the Division’s policy regarding closing statements is available at
http://www.usdoj.gov/atr/public/guidelines/201888.htm.
”
 
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“The Division provides this statement under its policy of issuing statements concerning the
closing of investigations in appropriate cases. This statement is limited by the Division’s obligation
to protect the confidentiality of certain information obtained in its investigations. As in most of its
investigations, the Division’s evaluation has been highly fact-specific, and many of the relevant
underlying facts are not public. Consequently, readers should not draw overly broad conclusions
regarding how the Division is likely in the future to analyze other collaborations or activities, or
transactions involving particular firms.
Enforcement decisions are made on a case-by-case basis, and
the analysis and conclusions discussed in this statement do not bind the Division in any future
enforcement actions
.
Guidance on the Division’s policy regarding closing statements is available at
http://www.usdoj.gov...nes/201888.htm.
”
Pay attention to the bolded, underlined italics above. What the DOJ was saying (at the conclusion of the DL-NW investigation no less) is "allowing Company A to merge with Company B does not in any way require the DOJ to allow Company C to merge with Company D."

AMR and LCC are playing with fire with this demand to see all the documents from prior airline mergers. You're talking about huge amounts of paper. The DOJ can readily petition (and get) a delay in order to have time to provide the documents. They can also petition for extensions to discuss certain proprietary information documents with the judge alone. They could then insist that the judge rule individually on each of those documents as to whether they should be made public.

DL could then step in and challenge the disclosure of any document that the DOJ had previously agreed contained proprietary information and would remain confidential to the DL-NW merger discussion.

Any delay in consummation of the merger will make it more and more evident that neither airline needs the merger to continue in operation. At some point AMR would probably decide to just walk away from the merger, and go back to Plan A. After all, the drop dead date for walk away penalties for either party comes in early December. I know that they have petitioned for an extension, but it hasn't been granted. I'm just sayin'.
 
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If nothing else, I would like to see their published numbers on the city pairs of both DL & UA in comparison to what they whipped up with the 1000+ of a combination of AA & US. I'm willing to bet they are all in the same ballpark.
 
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wings i agree with you i too think it would have to be close in proximity to the ual/co and nw/dl city pairs there could be a good basis for argument and may be thats what the 2 airlines want to see
 
Jim is absolutely right that pushing for details on the documents could further delay the merger.... the DOJ has their reasons why and they can certainly show them to the judge which is all that matters at this point in their efforts to demonstrate what they are asking of AA/US is reasonable.


If nothing else, I would like to see their published numbers on the city pairs of both DL & UA in comparison to what they whipped up with the 1000+ of a combination of AA & US. I'm willing to bet they are all in the same ballpark.
there were far fewer markets involved because consolidation was not near as far along in the industry. DL and NW were the first and UA and CO had very different strengths, and has been noted, UA and CO's strengths are far more in their hubs than in secondary cities "attached" to their hubs. DL and NW were highly complementary in terms of regions as was UA and CO. That was not true with WN and that is where I think the DOJ wishes they could have a redo... but they bought the notion that low fare carrier is good when that isn't necessarily the case. Now that the industry has consolidated, AA/US will have a larger list of markets.

As has been noted before, antitrust law IS NOT based on the notion that one company in an industry can be approved for a merger so that others down the road should as well.

AA/US is the last major merger and they may well pay a higher price because of the level of consolidation in the industry by the time they got around to merging.... which was driven by AA's BK.

However, however, the vast majority of the problem is DCA and that doesn't have anything to do with the sequence of mergers; US grew to 55% of the slots at DCA as a result of the slot transaction and that size would most certainly create problems down the road.

I still think the settlement will involve 20-30 slot pairs at DCA plus gates at CLT and a few other cities.... along with prohibitions on AA/US initiating certain pricing actions.

A settlement is possible and could move the merger on to the next step.
 
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I'm talking about a side by side comparison of the current day market numbers of DL & UA, not what they were at the time of the mergers. I'm sure there are plenty of city pairs with and without a connection that they have a monopoly on with no competition.
And let's not forget to put SWA into the mix as well. That alone is total BS.