DOT Tentatively Approves Delta/Aeromexico Joint Venture

[jimntx]

Final approval will require divestiture of slots at JFK and at Mexico City. Can't tell more than that. Have to have paid subscription to get full article.

http://atwonline.com/regulation/dot...m=email&elq2=40d3b470c93c4e579b7dbe9deff7c5b0

 

[jimntx]

Delta and Aeromexico to reconsider JV if DOT does not reduce the conditions--especially slot divestitures and limiting the JV to 5 years.

http://atwonline.com/airlines/delta...m=email&elq2=8cb63e51a2ba4f20ba73937a8ed1f1f5

 

[eolesen]

I almost wonder if DL got a slightly worse ruling from DOT/DOJ on this based in part on the antics they pulled after the SEA-HND ruling.

Rumor has it that DL might walk away or sit on accepting the tentative approval, and hedge their bets on a friendlier administration under Elaine Chao.

Then again, the people ruling on things like this tends to be mostly career civil servants and not political appointees. Chao having been on NWA's board might not help here.

 

[jimntx]

DOT gives final approval to the JV, BUT...with all the "onerous" conditions still attached. DL was unable to convince DOT that the specified conditions made the JV not worth it. Evidently the DOT doesn't care one way or the other. What goes around comes around?

http://atwonline.com/regulation/dot...m=email&elq2=15779ddaf92b4a48a87063e46a5bdec6

 

[eolesen]

I suspect they call DOT's bluff and withdraw their application, just as AA and QF did last month when DOJ tentatively denied expanding their existing JV.

 

[Glenn Quagmire]

I almost wonder if DL got a slightly worse ruling from DOT/DOJ on this based in part on the antics they pulled after the SEA-HND ruling.

Rumor has it that DL might walk away or sit on accepting the tentative approval, and hedge their bets on a friendlier administration under Elaine Chao.

Then again, the people ruling on things like this tends to be mostly career civil servants and not political appointees. Chao having been on NWA's board might not help here.

If Richard Anderson could have called Elaine, it would have been a done deal.

 

[eolesen]

Come January (or whenever she gets confirmed), that might be what happens.

 

[jimntx]

Considering her past relationship with what is now part of Delta, do you think she will risk charges of cronyism or have other airlines demanding equal treatment in JVs and mergers? It would not be easy in a court case to justify giving special treatment to DL and not to other airlines.

 

[eolesen]

What makes you think that her treatment of DL would be any better or worse than it would be for AA, UA, or anyone else looking to get ATI approval?

 

[jimntx]

I didn't say she would or would not. Go back and read my question. The "professionals" in the DOT have approved the JV with conditions. Conditions that DL doesn't happen to like. If the head honcho has a previous relationship with DL and the honcho overrules the "professionals", you don't think that will make other airlines look askance at the situation, or use it as proof that they were mistreated at the DOT, but DL got a pass because of Chao's prior relationship? If so, I find that level of naivete refreshing in someone your age.

 

[eolesen]

Oh, I was just thinking Chao might consider overriding the negative decisions because it was the right thing to do regarding both of the applications in question.

 

[Glenn Quagmire]

Oh, I was just thinking Chao might consider overriding the negative decisions because it was the right thing to do regarding both of the applications in question.

Yeah, that's it. Or she could get the nudge from the top saying that appearances no longer matter...

 

[jimntx]

E, I suspect you were ready to get on your high horse that one of us 'tards would dare to suggest that a Republican appointee was not without sin or error..

 

[eolesen]

All a moot point, DL agreed to DOT's onerous terms, and Jim won't have to worry about any alleged croneyism or purported conflicts of interest.

It does in a way screw over AA, in that they won't have someone else with an open application to be considered, and it also sets a precedent for route divestitures when AA/QF reapply for expanded ATI.

 

[topDawg]

All a moot point, DL agreed to DOT's onerous terms, and Jim won't have to worry about any alleged croneyism or purported conflicts of interest.

It does in a way screw over AA, in that they won't have someone else with an open application to be considered, and it also sets a precedent for route divestitures when AA/QF reapply for expanded ATI.

American and Qantas isn't the same animal as Delta/Aeromexico.

Look at the marketshare numbers......