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DOJ Trial NOV. 25 US/AA

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Trial date of November 25 set for U.S. challenge to AMR-US Airways merger


By David Ingram and Diane Bartz
WASHINGTON | Fri Aug 30, 2013 12:12pm EDT

(Reuters) - A federal judge on Friday set a tentative November 25 trial date in the U.S. government's legal challenge to an American Airlines AAMRQA.UL merger with U.S. Airways (LCC.N).
Judge Colleen Kollar-Kotelly, who will try the case without a jury, announced the date at a hearing in U.S. District Court.
The U.S. Justice Department had asked for a March trial. The airlines had been pushing for November because holding a deal together for months puts a strain on the parties. During the merger review and challenge process, the companies say they are essentially in limbo, unable to merge but unable to make independent long-range plans.
"March 3, I think, is too far off. It needs to be a tighter, expedited schedule," the judge said in court.
The Justice Department filed a lawsuit in mid-August to block the deal, which would create the world's biggest air carrier. The government said the merger would lead to higher prices for customers, while the companies said it would make them more competitive and strengthen the market.
In its initial complaint, the department focused on Ronald Reagan National Airport, outside Washington, D.C., where the two companies control a combined 69 percent of takeoff and landing slots. It also listed more than 1,000 city pairs where the two airlines dominate the market.
Lawyers for the two sides said the trial was expected to last 10-12 business days. The judge will appoint a special master to help the discovery process move along faster. She set the next status conference for October 1.
The Justice Department plans to call about 15 witnesses and the airlines plan to call approximately six. The department proposes conducting depositions of as many as 50 people. The airlines said they want to depose about 10 people. Lawyers said they could exchange millions of documents.
The case at the U.S. District Court for the District of Columbia is No. 1:13-cv-012346-CKK.
 
Since they will have their Holders shoved up their Owebama in the actual court proceeding, yes, they will be more amiable to a settlement.

The whole March scheme was just that; an attempt to defeat by delay.

Screw Baer
Screw Holder
Screw Owebama
 
This is a simple matter, the justice department will tell the parties what they have to concede to get approval and if they do it they will be allowed to merge. If the airlines keep shooting their mouths off in public and keep using their lobbyists to make their case in the media they will have problems and this will take forever. If you will remember, when this started these carriers came out in public and said that they shouldn't have to divest ANY slots; that's not going to happen. The government is just reminding them who is in charge where antitrust issues are concerned, I think they have their attention now.
 
Obey!
 
Meanwhile this crap sails through......

Delta, Virgin Atlantic Secure Initial Antitrust Approval for Trans-Atlantic Joint Venture


By DOUG CAMERON CONNECT
Delta Air Lines Inc. DAL +0.46% on Friday secured tentative approval for its planned trans-Atlantic alliance with Virgin Atlantic Airways Ltd. after U.S. officials concluded in would likely boost competition.

The U.S. Department of Transportation signaled the pact would be granted antitrust immunity, allowing the two airlines to combine schedules, marketing and revenue from their trans-Atlantic flights.

The application was closely watched as it could have a bearing on any effort by the parent of American Airlines to draw US Airways Group Inc. LCC +1.25% into its existing trans-Atlantic partnership if the two merger partners manage to overcome opposition to the proposed deal from the U.S. Justice Department.

The Virgin deal cements Delta's position as the largest airline on trans-Atlantic routes, and closes the gap with the existing partnership between British Airways IAG.MC -2.10% and the American Airlines unit of AMR Corp. AAMRQ +4.42% on flights between London's Heathrow and New York's John F. Kennedy airports, a rich source of profitable business traffic.

Delta and Virgin estimate their joint venture—due to launch in the first quarter of 2014—will generate around $3 billion a year in revenue.

The U.S. Transportation Department said in a filing that Delta and Virgin's partnership would "create a strong, competitive counterweight" to the Oneworld pact on trans-Atlantic flights involving BA, American and Spain's Iberia, which already has antitrust immunity.

Oneworld members control 55% of the New York to London market, according to the Department of Transportation, and an immunized Delta-Virgin would have 32%.

The bulk of Virgin's flying is to the U.S. and the Caribbean, but the airline also operates to Tokyo, Shanghai, Hong Kong and Sydney, as well as two cities in India, four in Africa and Dubai.

Delta and Virgin plan to operate as a stand-alone joint venture, with flights run by their partners in the SkyTeam marketing alliance—including Air France-KLM SA and Alitalia SpA—pooling their trans-Atlantic operations in a separate entity.

Virgin is also expected to establish separate pacts with other SkyTeam members, though it has yet to decide whether it will join the alliance.
 
Did you miss the part where Doug Parker et al shot their mouths off in emails about saying what the DOJ wants to hear and about how mergers have allowed new fees?
We have a free market economy. Turning a profit isn't illegal and the DOJ has a snowballs chance in hell at convincing a Judge they have a case. The complaint is so amateurish it's embarrassing. These people have no idea how airlines actually work.
 

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