Virgin Jumps Into Debate Over US Airways, American Merger

Discussion in 'US Airways | Dividend Miles' started by Newscience, Nov 11, 2013.  |  Print Topic

  1. Newscience

    Newscience Gold Member

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    Virgin America Inc won permission on Monday to file a brief with the court hearing the Justice Department's bid to stop a big airline merger, giving it an opportunity to argue for lower barriers to enter the U.S. market.
    The government filed a lawsuit in August arguing that US Airways (LCC) and American Airlines (AAMRQ) should be forced to scrap a proposed merger that would create the world's largest airline.
    Virgin, noting that it was the most recent airline to enter the U.S. market, said in a filing that the proposed deal between U.S. Airways and American would further solidify already considerable impediments to new entrants.

    See:
    http://www.foxbusiness.com/investin...-into-debate-over-us-airways-american-merger/
     
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  2. Mike Reed

    Mike Reed Gold Member

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    Interesting. If anything, this really looks like a thinly veiled attempt to keep the merger from happening or be rewarded much too handsomely if it does.

    Sent from my iPhone using milepoint
     
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  3. Newscience

    Newscience Gold Member

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    Friends of the DOJ? :confused:
     
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  4. Mike Reed

    Mike Reed Gold Member

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    Competitors who prefer two weaker competitors to one stronger one, especially WN vs. AA in the DFW market.
     
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  5. LETTERBOY
    Original Member

    LETTERBOY Gold Member

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    I'd expect all of the LCCs to ask to file briefs with the court, if they haven't already. They'll say either the merger should be blocked, or that US/AA should have to give up a lot of slots at DCA if it goes through.
     
    Last edited: Nov 11, 2013
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  6. Newscience

    Newscience Gold Member

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    Absolutely! IMHV, ensuring that our "lawmakers" and their "friends" (i.e., powerful lobbyists) have access to what they want in terms of air fares and flights out of DCA has been a big factor in stopping the AA/US merger all along. ;)
     
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