Itrade:
That is an awesome picture, which by the way could occur.
A few days ago I visited your website and I was very impressed. You did an outstanding job puting together an informative site which looks at US.
There is one area of the OMB regulations that discuss the ATSB’s shaping power. When discussing how a loan guarantee can be applied, the regulation says, “If loan funds are to be used to purchase an existing firm, or the substantial assets of an existing firm, the business plan of the combined entity shall contain a discussion of an existing firm, the business plan of the combined entity shall contain a discussion of the way in which any required regulatory or judicial approvals will be obtained, including antitrust approval for any proposed acquisition.â€
It is clear the ATSB has extraordinary authority, the rules discuss M&A activity, and the board can even make a condition for a loan guarantee such things as a bankruptcy filing, an asset divestiture, or a corporate combination.
I do not know if UA & US will combine in some fashion and it will be up to the parties involved to decide their course of action, but there are some unusual signs and something has to be done with the industry in crisis. In addition, I believe there are so many moving parts that even the players do not know how this will all wash out; however, nothing will be decided until its known whether or not UA seeks bankruptcy protection.
What I find interesting is that Norm Mineta serves on the ATSB and is the DOT Secretary. UA & US asked the DOT to not disclose their code share details and the DOT declined the ACAA (with DL & AA support) for a full docket review, which would have made the proceedings public. Why the secrets and why did the UA pilots obtain pre-nuptial seniority language in their agreement, if nothing could happen to combine the company's?
Chip