Word is AA/US have settled with the DOJ

[USFlyer]

From CNBC:  Shares in US Airways were halted Tuesday morning, as Bloomberg News reported that the airline and its prospective merger partner AMR were close to settling a U.S. government antitrust suit.
USAir shares were up 3.4 percent before the halt.

 

[MetalMover]

http://www.cnbc.com/id/101151956?__source=yahoo%257cfinance%257cheadline%257cheadline%257cstory&par=yahoo&doc=101151956%257cUSAir,+AMR+reach+antitrus

 

[swamt]

Yes just announced live; There is a settlement.  It includes Humongous divestures all over.  Many more airports involved than most others thought. 

 

[Overspeed]

MSNBC, trading halted
 
http://www.nbcnews.com/business/us-air-american-merger-back-track-after-antitrust-settlement-source-2D11577715

 

[WorldTraveler]

These are the most extensive divestitures required in any US airline merger.... yet AA/US agreed to it.

AA loses most of the slots it was bringing to the merger at DCA and more slots at LGA than DL had to divest as part of the slot deal with US.

"Under the terms of the settlement, the airlines will divest 52 slot pairs at Washington Reagan National Airport (DCA) and 17 slot pairs at New York LaGuardia Airport (LGA), as well as certain gates and related facilities to support service at those airports. The airlines also will divest two gates and related support facilities at each of Boston Logan International Airport, Chicago O'Hare International Airport, Dallas Love Field, Los Angeles International Airport, and Miami International Airport. The divestitures will occur through a DOJ approved process following the completion of the merger. Despite the divestitures, the new American is still expected to generate more than $1 billion in annual net synergies beginning in 2015, as was estimated when the merger was announced in February.

After completion of the required divestitures, the combined company expects to operate 44 fewer daily departures at DCA and 12 fewer daily departures at LGA than the approximately 290 daily DCA departures and 175 daily LGA departures that American and US Airways operate today.[ii] The divestitures required by the settlement are not expected to impact total employment at the new American.

To ensure much of the service currently operated by the carriers to small- and medium-sized markets from DCA is maintained, the new American has agreed with the DOT to use all of its DCA commuter slot pairs for service to these communities. The new American intends to announce the service changes that will result from the divestitures in advance of the sale of the DCA and LGA slots, so that the airlines acquiring those slots have the opportunity to maintain service to those impacted communities.

Significant to note that AA will be divesting its gates at Love Field.

Good news for AA and US to be able to move forward....
these are huge divestitures that most certainly change the financial dynamics of the new AA but, as I expected, AA/US would pay the price rather than remain separate.

 

[Jacobin777]

It is the most extensive divestitures required in any US airline merger.... yet AA/US agreed to it.

AA loses most of the slots it was bringing to the merger at DCA and more slots at LGA than DL had to divest as part of the slot deal with US.

"Under the terms of the settlement, the airlines will divest 52 slot pairs at Washington Reagan National Airport (DCA) and 17 slot pairs at New York LaGuardia Airport (LGA), as well as certain gates and related facilities to support service at those airports. The airlines also will divest two gates and related support facilities at each of Boston Logan International Airport, Chicago O'Hare International Airport, Dallas Love Field, Los Angeles International Airport, and Miami International Airport. The divestitures will occur through a DOJ approved process following the completion of the merger. Despite the divestitures, the new American is still expected to generate more than $1 billion in annual net synergies beginning in 2015, as was estimated when the merger was announced in February.

After completion of the required divestitures, the combined company expects to operate 44 fewer daily departures at DCA and 12 fewer daily departures at LGA than the approximately 290 daily DCA departures and 175 daily LGA departures that American and US Airways operate today.[ii] The divestitures required by the settlement are not expected to impact total employment at the new American.

To ensure much of the service currently operated by the carriers to small- and medium-sized markets from DCA is maintained, the new American has agreed with the DOT to use all of its DCA commuter slot pairs for service to these communities. The new American intends to announce the service changes that will result from the divestitures in advance of the sale of the DCA and LGA slots, so that the airlines acquiring those slots have the opportunity to maintain service to those impacted communities.

Significant to note that AA will be divesting its gates at Love Field.

Given the massive increase in costs the merger is creating, I wonder just how profitable the new AA will be with all of the slot/gates divestments.
 
I can't wait to see what happens in 2-3 years time when all the unions get tired of DP.
 

Regardless, congrats to everyone who wanted the merger and Parker to run the show!

 

[robbedagain]

Amazin aa gives up lga a lot yet dl controls nyc

 

[azstrik]

http://www.foxbusiness.com/industries/2013/11/12/report-amr-us-air-to-settle-anti-trust-suit-over-merger/

 

[swamt]

These are the most extensive divestitures required in any US airline merger.... yet AA/US agreed to it.

AA loses most of the slots it was bringing to the merger at DCA and more slots at LGA than DL had to divest as part of the slot deal with US.

"Under the terms of the settlement, the airlines will divest 52 slot pairs at Washington Reagan National Airport (DCA) and 17 slot pairs at New York LaGuardia Airport (LGA), as well as certain gates and related facilities to support service at those airports. The airlines also will divest two gates and related support facilities at each of Boston Logan International Airport, Chicago O'Hare International Airport, Dallas Love Field, Los Angeles International Airport, and Miami International Airport. The divestitures will occur through a DOJ approved process following the completion of the merger. Despite the divestitures, the new American is still expected to generate more than $1 billion in annual net synergies beginning in 2015, as was estimated when the merger was announced in February.

After completion of the required divestitures, the combined company expects to operate 44 fewer daily departures at DCA and 12 fewer daily departures at LGA than the approximately 290 daily DCA departures and 175 daily LGA departures that American and US Airways operate today.[ii] The divestitures required by the settlement are not expected to impact total employment at the new American.

To ensure much of the service currently operated by the carriers to small- and medium-sized markets from DCA is maintained, the new American has agreed with the DOT to use all of its DCA commuter slot pairs for service to these communities. The new American intends to announce the service changes that will result from the divestitures in advance of the sale of the DCA and LGA slots, so that the airlines acquiring those slots have the opportunity to maintain service to those impacted communities.

Significant to note that AA will be divesting its gates at Love Field.

Good news for AA and US to be able to move forward....
these are huge divestitures that most certainly change the financial dynamics of the new AA but, as I expected, AA/US would pay the price rather than remain separate.

I know you didn't personally.  But most out here did not think it would be this large.  I said it was going to be this large, huge was my words, from the announcement of merger.  Both you and I have stated that it will be more "concessions", if you will, than any other merger in the past, but I don't think any of you thought it was going to be this big.  They say that both sides agree, and this is what surprises me, I honestly thought the divestures were going to be too large for the airlines to agree, so I am a little surprised, however, I would love to know all the ins and outs of where the DOJ started with their request.  These are huge divestures from all over.   AA even has to give up the 2 gates at Dallas Love Field--WOW!!!

 

[AdAstraPerAspera]

And how, pray tell, is giving up our gates at DAL going to improve competition at that airport for the people of Dallas?
 
[that is] Stupid, stupid, stupid!

 

[MetalMover]

Amazin aa gives up lga a lot yet dl controls nyc

I wonder what is going to be left of LGA?

 

[AA Tulsa Mechanic]

Looks like Tulsa survives for at least 2 more years

 

[swamt]

Hey WT: can you explain in layman terms about these 104 non-reserved commuter slots at Regan National they were talking about???

 

[WorldTraveler]

And how, pray tell, is giving up our gates at DAL going to improve competition at that airport for the people of Dallas?
 
[that is] Stupid, stupid, stupid!

it means AA cannot block competition at DAL and also means that DAL will be "WN's airport" and DFW will be AA's.

I would strongly bet, though, that WN does not automatically get the two gates at DAL but will be able to use them only if no one else wants to.

DL and UA will undoubtedly continue if not expand their DAL service as the Wright Amendment restrictions change.

 

[WorldTraveler]

Hey WT: can you explain in layman terms about these 104 non-reserved commuter slots at Reagan National they were talking about???

I honestly don't know how many of AA/US' slots at DCA are commuter vs. non-commuter but I am betting from the text that was put in the press release that the DOJ's focus is on ensuring the maximum number of small/medium cities are served by AA/US because they will have the best chance of making small cities work because they have the largest operation.

However, AA/US says they will cut some cities and some slots will be returned to the DOT which means to me that the DOT will likely be having a number of route cases that involve adding service to small/medium cities.

Because low cost carriers do not generally use RJs, the slots will most likely end up going to DL and UA as I predicted with DL likely having the best shot because UA has a hub at IAD that serves many small cities on the east coast from the Washington area.