Will the DOJ approve the AMR US Airways merger?

[Claxon]

The wagon before the horse. I am sure the powers to be sent many feelers out regarding regulatory approval. Some things will have to be given away. Will it be you?

http://www.antitrustinstitute.org/~antitrust/sites/default/files/AAI_BTC_USAir-AA_White%20Paper_8-7.pdf

 

[johnny kat]

I find it amusing that Kevin Mitchell was all for consolidation a couple of years ago...arguing that it was necessary for USA security and preferred for the sake of the nations GDP. (Please don't ask for the link as I don't have it)

I especially enjoyed Pg. 19 D 1. "The Merged Network Potentially Increases Control Over Connecting and Intra Regional Service in The US." I think this is what is really keeping World Traveler and others up late at night.

Thanks for the link pdf. This report pretty much makes the case FOR a merger from an employee stand point. What's not to like about working for a company with so much pricing power that it scares the hell out of other airline companies and their employees. It would be nice to work for a company that will pretty much be around in any event and that can handily compete with anyone. I would rather be employed by a strong company than a weak one. Just saying.

 

[FWAAA]

The fact-checking leaves a little to be desired:

Similarly, the bankruptcy of America West resulted in a merger with US Airways in 2005, a deal that
went unchallenged by the DOJ.10

Page 5 of the .pdf

 

[etops1]

Simple answer .. Yes .

 

[Walmartgreeter]

Yes.

Greeter

 

[700UW]

http://www.thedeal.com/content/regulatory/benefits-of-us-air-american-tie-up-questioned.php

 

[wings396]

I'm willing to bet that Parker has already inquired a bit about what they may be looking for months ago in order to get the deal done. While I'm sure that they will want some slots etc. divested, it will be tough for them to say no after letting all of the previous mergers take place.

 

[cynic]

Outside of some DCA slots, and US is dominant there without the merger, there really isn't anything that the DOJ could really the merged carrier to cut.

 

[furlopro]

West (PHX) going to Spirit.

 

[dca319]

I think it's been made more than clear that this merger will be approved. The little overlap that there between our two airlines will be taken care of to alleviate any anti-trust concerns. I think you could have sparred a whole thread just by pulling up one or two articles on the topic.

 

[necigrad]

With enough knowledge anyone could argure for or against and make a damned good case. I don't envy the DOJ.

 

[Phoenix]

With enough knowledge anyone could argure for or against and make a damned good case. I don't envy the DOJ.

Indeed on any given day there is ample evidence for the DOJ to support a "yes" or a "no", in any merger, which is perfectly suited to the reality behind the curtain. IMHO it's a political decision hiding in voluminous justifications, lawyerly trappings, and an august declaration by the DOJ. But some folks call me cynical.

IMHO the United/USAir deal back in the days of Wolf is a perfect example. United got buyer's remorse as soon as the economy tanked and all the economic realities no longer met the assumptions that supported a $60 share price purchase. The DOJ gave them the out.

 

[firedougparker]

I actually think DOJ would probably approve this in the end. There would be some fighting about giving up some slots or routes, but it would get through considering that UA-CO and DL-NW went through.

Doesn't mean that it's right or good for competition, but it would probably get approved anyway.

 

[whatkindoffreshhell]

Yes. But after Obama throws out the rule of law, burns the secured creditors' claims, demands the firing of Doug Parker, prohibits those weasley rich 1% corporate managers from flying on the company planes and gives the union 50% ownership of the business.

Obama will also offer a 50% subsidy to every money-losing product the new company can dream up (no matter if the market wants it or not) so every Ma & Pa Kettle can fly for free (by cashing in those SNAP vouchers) to every E.Bumfuch destination.

Finally, for his heroic service for touting this UCT, a certain Airbus pilot will be rewarded with a widebody left seat.

That should do it.

 

[johnny kat]

Whoa there momma! Time to put down the wine glass and go to bed. Seems like the crazies always interject Obama into any situation that doesn't suit their sensibilties. Reminds how the other side blames Bush for everything.