DOJ sues to prevent LCC/AMR link up

I'm glad I didn't buy any AAMRQ stock yesterday, as its down over 45% right now! Do you think it would be good to buy today and catch the rebound?
 
Word around the DeathStar from connected folks is that AMR/USAir's collective board is now scrambling for a "what now?!". I don't think they really had a plan beyond the merger.

It'll be interesting to see how much they have to give up to make the merger go. Or if the DOJ really means business and it won't go at all. The stock dropped 45% today.

In other news, the collective of ALPA carriers in the FFD sector unanimously decreed they would never accept a 'B scale'. It would appear the landscape is shifting. It's gonna be an interesting time to be a pilot.
 
I don't think that either company can survive on it's own...USAirwaysExpress wholly-owned, AWAC are very vulnerable even in the merged airline scenario and even more so without. Can't even begin to imagine what is going to happen to EN if the merger is indeed DOA.
 
This is pure politics. All you have to do is read the tea leaves. You have 6 State Attorney Generals involved in the lawsuit all with an agenda. Arizona doesn't want to lose their PHX hub. (which they won't) Pennsylvania is pissed that they lost their PIT hub. (because PHL was a better hub) Tennessee is pissed that they lost the MEM hub. (because DL doesn't need two southern hubs) Texas--I'll leave that one alone right now, but there is an agenda much deeper than most realize, DC because they aren't happy with airfares and bag fees, Virginia because of the proximity to DC.

DOJ wanted US/AMR to divest slots at Reagan to get below the 50% mark. US/AMR refused and now the DOJ shows up at the 11th hour to block an airline merger. The same type of airline merger that they have approved the last 5 times. (TWA/AA. AW/US, NW/DL, CO/UA, SW/AT).

Before the last five airline mergers were approved, the same DOJ turned down the US/UA merger in 2001. One would think that the DOJ has an agenda against US?

This pretty well stops the merger from happening in 2013 unless the DOJ backs off. If DOJ doesn't back off then it will be a 2-3 year court battle which US/AA would probably win in the end.

However, I'm not convinced that AA can flounder in bankruptcy court for the next 2-3 years while this is going on and stay in business. AA is getting killed with the loss of passenger feeds from the shift in business travel to UA and DL. AA really needs this merger more than most realize. It's simply a feed issue.

Has the DOJ considered what would happen if there were no AA to emerge from bankruptcy?

What would happen to airfares (and capacity) if AA were not in business?

Joe
 
Has the DOJ considered what would happen if there were no AA to emerge from bankruptcy?

What would happen to airfares (and capacity) if AA were not in business?

Joe

No. Like your first sentence--it's politics. They're posturing. Playing for the masses. They're making sound bites for Wolf Blitzen to rehash ad nauseam. "The AG is keeping those airline fat cats in check...doing right by the traveling public....looking out for the little guy." Speaking of nausea...
 
Welcome to our wannabe socialist state. ZOMGS, if the merged company has all of these slots in DCA that doesn't leave any for anyone else...lets make them give some up so we can offer it to someone else. What a pile!
 
Pick the hometown of any Congressperson, and you'll have identified a flight that won't get cut with the slot shuffle.
 
I don't think that either company can survive on it's own...USAirwaysExpress wholly-owned, AWAC are very vulnerable even in the merged airline scenario and even more so without. Can't even begin to imagine what is going to happen to EN if the merger is indeed DOA.
US Air made almost $300 million this past quarter alone. AA just had it's highest ever recorded revenue per seat mile. Both look pretty good moving forward.

That being said, they've done a LOT to integrate the two companies already - Eagle and PSA changed their flight numbers even.
 
US Air made almost $300 million this past quarter alone. AA just had it's highest ever recorded revenue per seat mile. Both look pretty good moving forward.

Eagle and PSA changed their flight numbers even.

so has mainline.
 
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