JUSTICE DEPT SUES TO BLOCK US/AA MERGER

[robbedagain]

cnn.com is reporting that the justice dept is suing to block the us/aa merger

 

[AANOTOK]

Yep,

http://aviationblog.dallasnews.com/2013/08/justice-department-files-suit-to-block-the-us-airways-american-airlines-merger.html/

 

[737823]

No USAIR (maybe)!!!

They will likely make more concessions and reach a settlement, but as I've said before its far from a done deal,

Josh

 

[freedom]

We cannot allow the government to threaten our job security ... we must fight them ... Every single US Airways and American Airlines employee's future is now at stake , along with that of your families ...

 

[robbedagain]

I do not see the doj winning this given that the same or similar issues were raised when dl/nw ua/co and wn/fl did their mergers
and the slot swap deal us n dl did

 

[Rogallo]

So, how long will this delay the merger process?

 

[dfw gen]

Freedom you are funny. Best thing for aa is for the take over NOT to happen. Job security that's a joke

 

[700UW]

DOJ Press Release:

http://www.justice.gov/opa/pr/2013/August/13-at-909.html

 

[eolesen]

I do not see the doj winning this given that the same or similar issues were raised when dl/nw ua/co and wn/fl did their mergers
and the slot swap deal us n dl did

The difference is that the DOJ didn't object to those mergers. They approved them because there were still other competitors, although arguably, UACO was probably too big to approve.

The other fact here is that the last time DOJ filed to block a merger, they won. US and UA didn't merge, much to the chagrin of Wolf and Chip Munn....

Unlike some of the other things the DOJ has done lately, the anti-trust division is probably right on this one, in that US as a bottom feeder is better for consumers.

 

[1AA]

So why wait until now to file an objection?
The Merger plans have been laid out over a period of time.

 

[freedom]

Without a merger YOUR jobs will be put in jeopardy .. Are you going to let your fellow employee's that you've worked with for 20 years go to the street ?

Are you going to take increased pay cuts that will have to result due to the lowered future CASM's ?

Are you going to sit there and just take it ? OR are you going to fight back !!!

I say we FIGHT BACK !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

 

[Rogallo]

Official DOJ release

 

[TWU informer]

The difference is that the DOJ didn't object to those mergers. They approved them because there were still other competitors, although arguably, UACO was probably too big to approve.

The other fact here is that the last time DOJ filed to block a merger, they won. US and UA didn't merge, much to the chagrin of Wolf and Chip Munn....

Unlike some of the other things the DOJ has done lately, the anti-trust division is probably right on this one, in that US as a bottom feeder is better for consumers.

Yep, the Federal Government wants deregulation which has put many out of business, and now they want to regulate when those going under try to survive. Can it really be a hybrid form of government and survive? How ridiculous can the law makers be?

 

[xUT]

The difference is that the DOJ didn't object to those mergers. They approved them because there were still other competitors, although arguably, UACO was probably too big to approve.

The other fact here is that the last time DOJ filed to block a merger, they won. US and UA didn't merge, much to the chagrin of Wolf and Chip Munn....

Unlike some of the other things the DOJ has done lately, the anti-trust division is probably right on this one, in that US as a bottom feeder is better for consumers.

Yep, UA/CO shouldn't have happened.
also, from your link:

President Scott Kirby said, “Three successful fare increases – [we are] able to pass along to customers because of consolidation.”
· At an industry conference in 2012, Kirby said, “Consolidation has also…allowed the industry to do things like ancillary revenues…. That is a structural permanent change to the industry and one that’s impossible to overstate the benefit from it.”
· As US Airways CEO Parker stated in February 2013, combining US Airways and American would be “ the last major piece needed to fully rationalize the industry.”
· A US Airways document said that capacity reductions have “enabled” fare increases.

Sometimes, people have to just shut up...
B) xUT

 

[WorldTraveler]

Unlike some of the other things the DOJ has done lately, the anti-trust division is probably right on this one, in that US as a bottom feeder is better for consumers.

that's the role they said US created for itself.

The lawsuit is not dependent on the problem at Reagan, Baer said. "Our complaints talks in great detail about other issues." He noted the antitrust unit's concerns about speciality pricing offered by US Airways going away as an additional issue.

http://blogs.marketwatch.com/capitolreport/2013/08/13/live-blog-of-justice-department-conference-call-after-blocking-us-airways-amr-deal/?mod=MW_home_latest_news