skyw82
Well-Known Member
I doubt the doj would let that happen.
If this merger doesn't go through don't expect anyone else allowed to tie the knot either.
DOJ sues to prevent LCC/AMR link up
- Thread starter sherpa
- Start date
I doubt the doj would let that happen.
If this merger doesn't go through don't expect anyone else allowed to tie the knot either.
PhilosopherPilot
Well-Known Member
AA and Airways are much larger than B6. Smaller mergers will probably be allowed.
skyw82
Well-Known Member
True but the doj's argument is that is reduced competition. If AA merges with b6 they will have over 50% market share out of jfk and 70% out of Boston, and let's not forget about south Florida.
Seggy
Well-Known Member
I'm thinking that if I was at JetBlue, I'd wish we had a union negotiated scope clause in our contract in place
.
TFaudree_ERAU
Mashin' dem buttons
Weren't people here calling for re-regulation a few weeks ago?
PhilosopherPilot
Well-Known Member
I'm thinking that if I was at JetBlue, I'd wish we had a union negotiated scope clause in our contract in place
I hear ya, though I'm not sure it would matter. There are plenty of examples where the smaller airline gets screwed even with a union CBA. From a purely academic standpoint, it would be interesting to see if our PEA is worth the paper it is printed on. Even if we are just stapled to the bottom of AA's list, that's not that bad in the long run.
PhilosopherPilot
Well-Known Member
In either case (AA-Airways or AA-JetBlue), divestitures would have to take place, no question. I'm thinking the AA-Airways deal will go through, just with some DCA slot losses, etc. But who knows?
Cherokee_Cruiser
Bronteroc
Well, the union negotiated scope clause worked very well at my last airline.I'm thinking that if I was at JetBlue, I'd wish we had a union negotiated scope clause in our contract in place
Seggy
Well-Known Member
Well, the union negotiated scope clause worked very well at my last airline.
Yes it did!
There is one list in case you didn't notice there.
CirrusMonkey
No Real Usefulness
I too think the merger will go through, eventually. For now, I am going to sit back and relish in watching Dougie squirm a bit. I am surprised at how many pilots are offended that the DOJ did this after what PHX tried to do to AE a few weeks ago.
amorris311
Well-Known Member
Well, since you still can't seem to comprehend, I'll make it simple for you. It worked the exact way it was written! You blame everyone else for your problems. Let it go! Your poor me, everyone at Colgan stole my upgrade diatribe is not only old, but pathetic.Well, the union negotiated scope clause worked very well at my last airline.
Cherokee_Cruiser
Bronteroc
I'm talking about even before then. You know, a holding company buying another one (non union) and then growing them at the expense of the ALPA one. Back then, a judge ruled single carrier and that we should have one list operation, but then later the judge reversed that decision. This was well before the 3-way screw job.
Firebird2XC
Well-Known Member
I'm in the schoolhouse this week, and one of the types that puts his name on memos dropped by. He was there with the man in charge when the call came down that the DOJ is trying to block the deal. Allegedly, it was said that "We had a plan A,B, and C and have absolutely no idea what to do with *this*."
In other words, expect a mild frenzy for the paper pushers. This apparently changes a lot- they really believed the merger was a done deal.
In other words, expect a mild frenzy for the paper pushers. This apparently changes a lot- they really believed the merger was a done deal.
JOEFRIDAY2
Well-Known Member
Here is the complaint filed by the DOJ against American and USAir:
http://www.scribd.com/doc/159988211/US-Airways-American-Airlines-Complaint
http://www.scribd.com/doc/159988211/US-Airways-American-Airlines-Complaint
JOEFRIDAY2
Well-Known Member
Ya know,
If the DOJ would spend time investigating and prosecuting the folks involved with price rigging, and gaming of the system, that has been going on with price of fuel and gasoline over the past 7 years, airfares would drop by 20% across the board.
Airlines are paying out 35% of the price on an airline ticket just for fuel. That is their single largest expense and the primary reason for the capacity reduction. Airlines just can't start adding routes and flying around planes with empty seats with the fuel cost at the present levels.
Joe
If the DOJ would spend time investigating and prosecuting the folks involved with price rigging, and gaming of the system, that has been going on with price of fuel and gasoline over the past 7 years, airfares would drop by 20% across the board.
Airlines are paying out 35% of the price on an airline ticket just for fuel. That is their single largest expense and the primary reason for the capacity reduction. Airlines just can't start adding routes and flying around planes with empty seats with the fuel cost at the present levels.
Joe
Kingairer
'Tiger Team' Member
I agree with AA s lawyer and say this isn't very well done. They start using snapshots from Kayak as justification on pricing? SW doesn't even use kayak.
CamYZ125
Well-Known Member
According to this article: http://www.thestreet.mobi/story/120...-is-weak-say-american-us-airways-lawyers.html it sounds like the lawyers were expecting resistance from the DOJ, and are surprised at how weak their case is. Sounds pretty cocky if you ask me.
L-16B
Well-Known Member
This is boo boo amorris311
Firebird2XC
Well-Known Member
Well, this is the initial filing. It might've been a last minute effort to stall for time. I don't know- I'm not a lawyer. I just think it interesting that something that so many had assumed was a done deal is suddenly being held up this way. I wonder what the underlying politics really are.
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