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Mergers hinge on US Air bid, says JetBlue CEO

USA320Pilot said:
Mergers hinge on US Air bid, says JetBlue CEO

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Regards,

USA320Pilot
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DOJ understands this whole concept as well. This is exactly the reason the deal will not materialize due to competition reduction. With a democratic congress in favor of labor and competition the deal is "DOA".
 
DOJ understands this whole concept as well. This is exactly the reason the deal will not materialize due to competition reduction. With a democratic congress in favor of labor and competition the deal is "DOA".


And just for grins, I will take another view....The merger will be approved, and New Delta will be right back in Chapter 11 in 3 years🙂 The real story will be the rise of Jet Blue and Airtran. They will achieve Major Carrier status with the long awaited redistribution of East Coast gates. Congress does not just look out after certain airlines. The other labor groups, who want their airlines to grow, will be considered in the decision. There. You can spin this competition thing both ways. Best. Greeter.
 
In my opinion, if the merger does not proceed it will not be a Justice Department obstacle because regulators file suit to prevent the deal, it will be Boeing Corporation selecting Delta’s standalone business plan instead of US Airways’ merger proposal. Boeing is chairman of the creditor’s committee and the aircraft manufacturer holds a lot of influence on how the merger proposal will proceed, once Gordon Bethune issues his recommendation in mid-January.

Meanwhile, on December 21 US Airways held an analyst and news media conference call. A large portion of the call was spent on antitrust issues, with US Airways’ antitrust attorney, Rick Rule, providing an excellent summary of the regulatory review.

Rule’s background is very impressive and includes working for the Justice Department on the United Airlines-US Airways merger review. After listening to his comments I believe the Justice or Transportation Department’s will not have an antitrust objection that cannot be met.

To listen to the call and review the PowerPoint presentation click onto the following link:

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For more antitrust information click onto this link:

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Here is another merger link that has interesting information:

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Regards,

USA320Pilot
 
I do not think this merger is going to happen. I'd rather see the time money and effort going into this futile merger be spent on investing in and getting the CURRENT airline running properly.

Delta neither needs nor wants US Airways, so get over it and move on.

Meanwhile the ship is taking on water.


Oh well........
 
chevyman said:
DOJ understands this whole concept as well. This is exactly the reason the deal will not materialize due to competition reduction. With a democratic congress in favor of labor and competition the deal is "DOA".
Click to expand...

Methinks you place too much stock in a very dated view of the airline industry's competitive landscape.

DOJ will not block this deal. It may not happen - but it won't be antitrust that kills the deal.
 
Once again I must ask why other Mergers from Oil companies, to utilities are approved then? Don't they reduce competiton, and raise consumer costs? :shock:
 
wings396 said:
Once again I must ask why other Mergers from Oil companies, to utilities are approved then? Don't they reduce competiton, and raise consumer costs? :shock:
Click to expand...


Did you notice that the industries you mentioned have been subsidized by the U.S. at some point in history? We (consumers) pay for it one way or the other... either you pay for it through increased prices due to consolidation or you pay through taxes due to subsidization.
 
PineyBob said:
Once the true LCC's reached a 20 to 25 percent market share by virture of a superior business model the so called legacy carriers lost pricing power. So in many ways it doesn't really matter how big DL/US gets so long as their is significant gate space for competition.
Click to expand...
That is basically the US spin, Bob - the true LCC's will keep fares down and besides, US + DL isn't really that big if you look at their domestic market share.

However, to paraphrase the current Deputy Administrater of the DOJ's Antitrust Division, the fact that WN serves RDU-MCO or that B6 serves CLT-BOS is irrevelent to the person in ILM that needs to go to TLH.

That's why the DOJ isn't interested in "broad brush" generalizations, but looks at specific city pairs and airport pairs. Remove enough competition in enough of those individual markets and eyebrows get raised at the DOJ.

It's not the big markets that will be the problem, other than the Shuttle operations. It's the many small markets where this merger would eliminate either one of the major competitors or the only competitor.

Jim
 
EricLv2Fish said:
Okay here is a spin, ever see "The Aviator"? Congress wears a two-sided face when it comes to money and labor.
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Eric's on to something...

As someone I know that has absolutely nothing to do with aviation and the airline industry has said, "Follow the money." As long as CitiBank wants to loan LCC $4 BILLION, this deals going to happen. And there's so many "deals" hinging on this thing...money. Money. It's the only thing more powerful than labor. 😉

If for some reason this particular deal is stopped, Delta will not emerge "stand-alone". She'll be sold off in pieces -- the creditors stand a chance of a better return on their dollar this way.

JMHO...
 
BoeingBoy said:
That is basically the US spin, Bob - the true LCC's will keep fares down and besides, US + DL isn't really that big if you look at their domestic market share.

However, to paraphrase the current Deputy Administrater of the DOJ's Antitrust Division, the fact that WN serves RDU-MCO or that B6 serves CLT-BOS is irrevelent to the person in ILM that needs to go to TLH.

That's why the DOJ isn't interested in "broad brush" generalizations, but looks at specific city pairs and airport pairs. Remove enough competition in enough of those individual markets and eyebrows get raised at the DOJ.

It's not the big markets that will be the problem, other than the Shuttle operations. It's the many small markets where this merger would eliminate either one of the major competitors or the only competitor.

Jim
Click to expand...

Thank you for staying here.

Roaches will always be around, thank you sir for being a voice of reason.

Sky
 
Art at ISP said:
I do not think this merger is going to happen. I'd rather see the time money and effort going into this futile merger be spent on investing in and getting the CURRENT airline running properly.

Delta neither needs nor wants US Airways, so get over it and move on.

Meanwhile the ship is taking on water.
Oh well........
Click to expand...
Anyone remember Wolf! He screwed around trying to hook up with UA and wasted critical time running US and not to long later we entered BK!

History could soon repeat itself if Doug press's fwd with this foolish deal
 
USA320Pilot said:
... Boeing is chairman of the creditor’s committee and the aircraft manufacturer holds a lot of influence on how the merger proposal will proceed, once Gordon Bethune issues his recommendation in mid-January.
... USA320Pilot
Click to expand...
And Gordo was president of Boeing prior to taking over CAL, remember?
 
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