DOJ Spectacular Retreat

Discussion in 'General Discussion | Travel' started by MX, Nov 4, 2013.  |  Print Topic

  1. MX

    MX Gold Member

    Messages:
    2,215
    Likes Received:
    4,805
    Status Points:
    2,545
    The Justice Department is positioning to drop its objections against the US/AA merger in exchange for token concessions. Anti-competitive consolidation has won.
     
    anileze and Newscience like this.
  2. Wandering Aramean
    Original Member

    Wandering Aramean Gold Member

    Messages:
    28,226
    Likes Received:
    61,778
    Status Points:
    20,020
    Not really a retreat IMO. My guess is that DoJ asked for concessions and AA/US said no, figuring that DoJ would approve anyways. DoJ called their bluff. Now AA/US have to cede some slots to improve competition over what it would have been without that and the DoJ can say they did their job.
     
    LETTERBOY, MX, anileze and 1 other person like this.
  3. Newscience

    Newscience Gold Member

    Messages:
    14,694
    Likes Received:
    45,079
    Status Points:
    16,475
    M7VO,
    Thank you for posting! The Reuters article is an interesting point of view of "reading the tea leaves" about the AA/US potential merger.
    I've often thought that the DOJ objections were based upon any impact that could occur at DCA, where our nation's politicians (to say nothing of the legions of lobbyists) are used to flying in and out of, and don't want anything to substantially change. And I'm sure that Milepointers with status in AA and US are following these events closely. I certainly am! :confused:
    Newscience
     
    MX and anileze like this.
  4. MX

    MX Gold Member

    Messages:
    2,215
    Likes Received:
    4,805
    Status Points:
    2,545
    Maybe DoJ was just posturing earlier, when they released Doug Parker's own emails as their evidence. Their arguments then were that consolidation at this point in the industry is not only theoretically anti-competitive, but it was the specific intent of the deal. The alleged threat was systemic, not limited to one or two markets.
     
    Newscience likes this.

Share This Page