Merger approved between AA and US Airways!

Discussion in 'US Airways | Dividend Miles' started by enichols22124, Nov 13, 2013.  |  Print Topic

  1. enichols22124

    enichols22124 Silver Member

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    jbcarioca likes this.
  2. Mike Reed

    Mike Reed Gold Member

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    I think most folks are discussing in the AA forum since the new airline will be AA.
     
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  3. NYCUA1K

    NYCUA1K Gold Member

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    The NYT Editorial Board believes that this is "An Unwise Airline Merger":

    In August, the Justice Department’s antitrust division filed a lawsuit to block the merger of American Airlines and US Airways, which would create the world’s largest airline and concentrate 80 percent of the domestic air-travel business in the hands of four companies.

    This week, the department dropped its opposition after the companies agreed to give up some space at a few airports — hardly sufficient to ensure the vigorous competition in the airline industry needed to keep fares down.

    In agreeing to the merger, the department seems to have forgotten the crucial arguments it made in its suit. It said that competition would decline significantly on more than 1,000 routes where the two companies currently compete head-to-head. And it said that the new combined American Airlines would control 69 percent of the limited takeoff and landing slots at Ronald Reagan National Airport near Washington, giving it a near-monopoly there.

    Under the proposed deal, which is subject to public comment and has to be approved by a federal judge, the two airlines will divest 15 percent of the takeoff and landing slots they control at Reagan National Airport and 7 percent of the slots they control at La Guardia Airport in New York to low-cost airlines like JetBlue. This would give travelers at those airports more choice and possibly lower fares, but the change may not be significant.

    The combined airline would also have to give up two gates at Boston Logan International, Miami International, Chicago O’Hare International, Los Angeles International and Dallas Love Field. With the exception of Love Field, where American has just two gates, the two airlines control many gates at those airports and relinquishing two at each will not make a big difference.

    These steps do virtually nothing to address the issue of reduced competition in dozens of other markets and on routes where the two airlines currently compete for customers. In some cities like Phoenix, Charlotte and Philadelphia, the merged airline will have such a dominant position that its competitors will have a very hard time challenging it.

    Continue reading...
     
  4. Art234
    Original Member

    Art234 Milepoint Guide

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    The merger has NOT been approved. The DOJ suit has been settled. That's all. While final approval is likely, it has not been granted at this time.
     
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