Justice gives up on US AA Merger

[x3 skier]

http://www.usatoday.com/story/travel/flights/2013/11/12/justice-merger-american-us-airways/3506367/

When you have a lousy case, punt. What a colossal waste of time and money.

Cheers

 

[Ron98GT]

http://www.usatoday.com/story/travel/flights/2013/11/12/justice-merger-american-us-airways/3506367/

When you have a lousy case, punt. What a colossal waste of time and money.

Cheers

The Low-Cost carriers don't thing so. USA & American had to give up gates (loss of revenue) to lower priced competition (loss of revenue). To the consumer, it could be a mixed blessing, depending who you fly with.

 

[dougp26364]

This sucks if you're in a small town market. It's either drive to the larger markets or pay higher prices. I believe this will take us down to 4 choices, UA, American, Delta and Southwest with Southwest being tentative. Southwest is only in town because of the merger with Airtran. Before that they had consitantly stated our airport didn't fit their corporate vision. Somehow I'm doubting they'll stay in town more than a few token years to say they gave it a shot. If that happens we'll have three airlines and higher prices. Pretty soon it will be back to driving 3 to 6 hours one way in order to fly for at reasonable airfare.

 

[am1]

When will the us airways credit card stop? I will need to add that to my portfolio before then.

 

[Ron98GT]

I don't think most low-cost carriers will want those expensive gates anyway. Example: SW is @ Midway instead of O'hare, Allegiant is @ Colorado Springs instead of the Denver Airport.
It also provides for lower priced.



Sent from my iPhone using Tapatalk

 

[T_R_Oglodyte]

This sucks if you're in a small town market. It's either drive to the larger markets or pay higher prices. I believe this will take us down to 4 choices, UA, American, Delta and Southwest with Southwest being tentative. Southwest is only in town because of the merger with Airtran. Before that they had consitantly stated our airport didn't fit their corporate vision. Somehow I'm doubting they'll stay in town more than a few token years to say they gave it a shot. If that happens we'll have three airlines and higher prices. Pretty soon it will be back to driving 3 to 6 hours one way in order to fly for at reasonable airfare.

Those of us in the Northwest have the good fortune of having Alaska in the mix as well.

I have some worry about what this means for Alaska, though. While Alaska isn't as tight with American as with Delta, American and Alaska are significant code share partners, whereas USAir isn't at all. So does that mean that the link with American will disappear, or will the new combined airline try to maintain the relationship with Alaska?

None of Delta, American, or USAir have significant north-south presence on the West Coast. Both Delta and American have filled that gap by partnering with Alaska. I suspect that Delta may have some issues with Alaska filling that kind of a strategic hole for the airline that is going to be Delta's biggest competitor. Seems to me that it might leave Alaska in a pretty strong position to negotiate some favorable terms.

 

[x3 skier]

The Low-Cost carriers don't thing so. USA & American had to give up gates (loss of revenue) to lower priced competition (loss of revenue). To the consumer, it could be a mixed blessing, depending who you fly with.

Per the article, Delta already plans on trying to acquire the slots being given up. Hardly a low cost carrier.

So the net result may be one gigantic airline gives up a few slots to another gigantic airline. Your DoJ at work.

Cheers

 

[sfwilshire]

This sucks if you're in a small town market. It's either drive to the larger markets or pay higher prices. I believe this will take us down to 4 choices, UA, American, Delta and Southwest with Southwest being tentative. Southwest is only in town because of the merger with Airtran. Before that they had consitantly stated our airport didn't fit their corporate vision. Somehow I'm doubting they'll stay in town more than a few token years to say they gave it a shot. If that happens we'll have three airlines and higher prices. Pretty soon it will be back to driving 3 to 6 hours one way in order to fly for at reasonable airfare.

I've been hoping we'd get Southwest Airlines for years, but when they merged with Airtran, they immediately pulled Airtran out of our city. I drive 200 miles to fly with them, but really shouldn't. We should boycott them until they decide to service our town.

I'm kind of excited about the AA/US Airways merger. I barely fly US Airways enough to keep my account active, but this year I could have made status on AA if my few US Airways flights were counted (especially the one to Puerto Rico).

Sheila

 

[Kauai Kid]

I'm just hopeful that when the dust settles we will be able to get from Texas to Maui or Kauai with only a single stop.

Right now American has a lousy single stop to Kauai getting in a 830 pm.
Use to be we could get into Lihue with American 330-4pm

Sterling

 

[Carolinian]

I could care less about the number of stops. I care about the loss of competition. Consumers and especially frequent flyers are going to get screwed by this.

The DOJ sold us out.

 

[cissy]

I wonder what will happen in Hilton Head. Currently, the only airline to fly there is USAir. At one time, both American and Delta flew in. From the East Coast, American isn't a good choice flying south, because all of their flights seem to connect in Dallas, way out of the way.

 

[Kauai Kid]

I could care less about the number of stops. I care about the loss of competition. Consumers and especially frequent flyers are going to get screwed by this.

The DOJ sold us out.

More stops=longer time to get to your destination.

Go for four stops and get to destination 32 hours later.

Then see if you care about the number of stops.

Amazing 9362 posts and you still haven't joined. For shame :annoyed:

Sterling

[When this board was first added to the TUG website many years ago, TUG's founder Bill Rogers made it available to everyone, whether TUG member or not. Bill did not countenance criticizing bbs users for not joining TUG and there have been numerous threads to that effect, although, thankfully, none have been necessary for quite a while. Bill has retired and his son Brian now holds the reins, but nothing has changed in this regard. You have been around long enough to know all this. - mg]

 

[Ken555]

The DOJ sold us out.

You expected something else? Over the last 10-15 years there's been little evidence the DOJ has much of a backbone...the lobbyists win again.


Sent from my iPad

 

[SueDonJ]

I wonder what will happen in Hilton Head. Currently, the only airline to fly there is USAir. At one time, both American and Delta flew in. From the East Coast, American isn't a good choice flying south, because all of their flights seem to connect in Dallas, way out of the way.

I don't know where you're flying from, but Jetblue is beginning service between BOS and SAV, and JFK and SAV, effective 2/13/14. I can't wait! Jetblue is my favorite carrier, by far, and it looks like they'll have more non-stop options than USAir has.

 

[Ron98GT]

Per the article, Delta already plans on trying to acquire the slots being given up. Hardly a low cost carrier.

So the net result may be one gigantic airline gives up a few slots to another gigantic airline. Your DoJ at work.

Cheers

Your right, contradictory information in the article.

In the first paragraph, per Justice:
"
The Justice Department announced Tuesday it is settling its lawsuit against the merger of American Airlines and US Airways by requiring the combined airline to give up slots at key airports across the country to low-cost competitors.

"
The settlement will increase presence of low-cost airlines in Boston, Chicago's O'Hare, Dallas Love Field, Los Angeles, Miami, New York's LaGuardia and Washington's Reagan National airports
"
And:

"
"By guaranteeing a bigger foothold for low-cost carriers at key U.S. airports,
"

So, does Delta consider itself a "Low-Cost Carrier"

"
Delta Air Lines issued a statement welcoming the agreement and saying the airline "looks forward to the opportunity to acquire slots that will be divested under the agreement
"



Hopefully, Justice will have a say in who can acquire those gates and what they will have to pay.

Either way, I can't see this affecting me living in Las Vegas. I wish Justice would have stepped in when Hawaiian purchased Aloha. Less competition and higher fares.

 

[Pat H]

I wonder what will happen in Hilton Head. Currently, the only airline to fly there is USAir. At one time, both American and Delta flew in. From the East Coast, American isn't a good choice flying south, because all of their flights seem to connect in Dallas, way out of the way.

I don't remember AA flying into HHI. It's such a small airport that was originally scheduled to be closed with the cutbacks. AA no longer flies SAV-MIA either so I'm glad that they will merge with US. Sometimes I drive to JAX for better flights/prices although UA is quickly becoming my airline of choice.

 

[x3 skier]

Hopefully, Justice will have a say in who can acquire those gates and what they will have to pay.

What Justice says to save face for giving up on a losing position in a suit and what really happens are two completely different things. The FAA and the Airports control gates and landing slots and AFAIK, Justice has zero input on who eventually takes over the slots.

They are requiring the relinquishing of slots to drop the suit but I believe they cannot direct who gets them. That's the FAA and depending who applies based on what the airport operator charges among other things including if the airline thinks they can make money, either Delta, United, Jet Blue, Spirit, Grandma Moses Aluminum Siding and Airline Company or whoever will wind up with the slots. OTOH, in a few years, the competition (what there is of it) will determine who eventually winds up with whatever AA/US gave up.

Cheers

 

[csxjohn]

What Justice says to save face for giving up on a losing position in a suit and what really happens are two completely different things. The FAA and the Airports control gates and landing slots and AFAIK, Justice has zero input on who eventually takes over the slots.

They are requiring the relinquishing of slots to drop the suit but I believe they cannot direct who gets them. That's the FAA and depending who applies based on what the airport operator charges among other things including if the airline thinks they can make money, either Delta, United, Jet Blue, Spirit, Grandma Moses Aluminum Siding and Airline Company or whoever will wind up with the slots. OTOH, in a few years, the competition (what there is of it) will determine who eventually winds up with whatever AA/US gave up.

Cheers

You forgot the Mrs Grace L. Ferguson Airline and Storm Door Company.

http://www.youtube.com/watch?v=8yFLA10CF88

 

[Carolinian]

Given Holder's Wall Street connections, I very much doubt that it involved a ''losing position'' in the lawsuit, but rather a sell out by DOJ. Sad. This will ruin the only great airline left standing in the US.

What Justice says to save face for giving up on a losing position in a suit and what really happens are two completely different things. The FAA and the Airports control gates and landing slots and AFAIK, Justice has zero input on who eventually takes over the slots.

They are requiring the relinquishing of slots to drop the suit but I believe they cannot direct who gets them. That's the FAA and depending who applies based on what the airport operator charges among other things including if the airline thinks they can make money, either Delta, United, Jet Blue, Spirit, Grandma Moses Aluminum Siding and Airline Company or whoever will wind up with the slots. OTOH, in a few years, the competition (what there is of it) will determine who eventually winds up with whatever AA/US gave up.

Cheers

 

[x3 skier]

Given Holder's Wall Street connections, I very much doubt that it involved a ''losing position'' in the lawsuit, but rather a sell out by DOJ. Sad. This will ruin the only great airline left standing in the US.

Based on what I read in various papers and web sites, the consensus was DoJ would have lost the case and to try and save face, extracted a bunch of "concessions" that US and AA would have done anyway after the merger. Hardly a sound reason to bring a suit, especially after waiting months until around two weeks before the Judge was going to rule.

As I said before, a great waste of time and money by the DoJ and a poorly disguised attempt to deflect attention from other Administration problems. Sort of "If you like the airline you fly now, you can keep flying it.":hysterical:

I have no opinion on the plus or minus of the merger since I accept things I cannot affect.

Cheers