Eolsen:
Eolsen said: Technically, DOJ didn't reject the merger, but how could they expect UAL not to back off after finding out that the sham known as DC Air wouldn't fly, and further slot/route/facility divestitures would have been required.
Chip comments: On July 23, four days before the parties mutually terminated the acquisition MOU; Hewitt Pate held a meeting in DCA at Justice headquarters. At that meeting Pate brokered a deal that would have required the parties to sell the DCA gates & slots to AMR, eliminate the joint shuttle venture, eliminate UA's ability to recapture assets if AA's market share grew past the agreed amount, and for AA to acquire at least 13 PHL gates.
Jim Goodwin and Stephen Wolf agreed to the proposal, provided the UA unions would not prove to be an obstacle. When the UA AFA filed their lawsuit over the scope issue, that earlier this year where the flight attendant's won a System Board Grievance (over the Air Willy case), UA pulled out of the deal and I understand the US Executive Suite was quit somber over the event.
Mike Boyd's comment on this issue is accurate.
Chip