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Oberstar won't back DL/NWA merger....article

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Because we are a capitalistic nation and oligopoly's work to restrict the supply of resources in the free market.

Back to my question now, what should the price of an airline ticket be?

What should the price of a 121 pilot be?

The price of an airline ticket from SFO to JFK is the same now as it was 30 years ago...... Everything has increased in that time exept for the pay of the employees.....

Stick with your opinion, but if you do, don't complain when pilot pay goes down......

Again, why make it illegal for airlines to set prices if as you say someone will undercut them anyway.... I don't see the purpose?
 
The price of an airline ticket from SFO to JFK is the same now as it was 30 years ago...... Everything has increased in that time exept for the pay of the employees.....
Computer prices have dropped quite sigcantly since 1978.
 
...Your form of an Oligopoly just wont work becuase someone is always willing to charge a lower price.

123

Your right about this. However:
- until someone comes into the market after consolidation, to bring competition back up, the carriers will reap the rewards. This cycle can take years
- The rewards don't always come from a change in the price, much of it comes from efficiencies gained in the consolidation...reduced expense.
- With the price of oil, ticket prices can't get much cheaper. Even WN had to raise ticket prices, and slow their growth. The theory that someone will just automatically come it and charge lower fares is naive...there are more factors involved.

I believe that air travel has become somewhat of a homogeneous product...people go to Orbitz, and find the cheapest price. Hell, I even do this! So, that being said... they only way to raise the price is lower supply. Consolidate! This is the very reason lawmakers are against it.
 
"You have to admit though, fundamentally, why would congress ever want a merger to happen. The carriers appear to be doing ok (not great, but ok), there is PLENTY of competion and ticket prices are extremely low."


But how would they be doing if they couldn't keep declaring bankruptcy and ignoring their creditors?

I agree, I wish the government would keep out the industry completely.
 
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I find it amusing that so many diehard ALPA folks continue to support the liberal agenda of "protecting the consumer".......

The first step to negotiating higher pay is to return the airline's to sustainable profitability.... Worrying about the "poor consumer" is not my concern....They are already getting a heck of a deal that isn't keeping up with inflation..... Let the airlines get together and raise prices..... That is what we need......

Just curious Joe, since you are a consumer in all the other categories of the economy outside of your profession, how exactly do you expect this perspective to benefit you? I am not sure why protecting the consumer is a 'liberal' agenda and if that is the case then I suppose allowing companies to run rough-shod over the American people would be the 'conservative' policy.

May benefit you now (assuming you would be part of the dominant carrier in a merger and a survivor of the ensuing job reductions due to capacity cuts) but in the long run you are sticking it too yourself just to enrichen the top 10% shareholders involved in any deal like this.

Something to keep in mind everybody, the fewer US air carriers operating on US soil with open-skies pending, the more room we make for Ryan and all the other low-ball paying airlines from Europe when they invade the country over the next few years. Then watch how your 'conservative representatives' save you from being forced into salaries commensurate with the Ryans' to stay 'competitive', all the while the upper management and again the 10% of the share holders who hold the preponderance of the outstanding shares of the airline laugh all the way to the bank.

Just my thoughts, stop blaming us liberals for every problem that Bush has either caused or can't fix. Hopefully none of this will effect you as all of you conservatives will be whisked away into the clouds any day now.....
 
Just my thoughts, stop blaming us liberals for every problem that Bush has either caused or can't fix. Hopefully none of this will effect you as all of you conservatives will be whisked away into the clouds any day now.....


Just so I don't contribute to this hijack: Oberstar is a schmuck.

Now, Kugel, if you still cling to the "my team is better than your team" political theory, you need to open your eyes.

Or maybe you didn't fly one of the largest contributors to the Democratic party around in their GV (their OWN, not the company's...) for the past 3 years. You didn't see the profligate burning of money (flying 4 hours to the coast to pick up a set of golf clubs) and the disdain for the "unwashed". (Your status in the "community" is determined by how many illegals you enslav...er, I mean employ.)

The people who own the politicians don't give a $h!t about you or I--and the "D" or "R" behind their names doesn't change that fact.

Wake the F#@k up people! :rolleyes: TC
 
The private sector reeally has your interests in mind, Joe.

I look to the Private Sector to help me out.....not to Wash. DC.......

....

You mean like this guy?


Joe gets up at 6:00am to prepare his morning coffee. He fills his pot full of good clean drinking water because some liberal fought for minimum water quality standards. He takes his daily medication with his first swallow of coffee. His medications are safe to take because some liberal fought to insure their safety and work as advertised.All but $10.00 of his medications are paid for by his employers medical plan because some liberal union workers fought their employers for paid medical insurance, now Joe gets it too. He prepares his morning breakfast, bacon and eggs this day. Joe’s bacon is safe to eat because some liberal fought for laws to regulate the meat packing industry.

Joe takes his morning shower reaching for his shampoo; His bottle is properly labeled with every ingredient and the amount of its contents because some liberal fought for his right to know what he was putting on his body and how much it contained. Joe dresses, walks outside and takes a deep breath. The air he breathes is clean because some tree hugging liberal fought for laws to stop industries from polluting our air. He walks to the subway station for his government subsidized ride to work; it saves him considerable money in parking and transportation fees. You see, some liberal fought for affordable public transportation, which gives everyone the opportunity to be a contributor.

Joe begins his work day; he has a good job with excellent pay, medicals benefits, retirement, paid holidays and vacation because some liberal union members fought and died for these working standards. Joe’s employer pays these standards because Joe’s employer doesn’t want his employees to call the union. If Joe is hurt on the job or becomes unemployed he’ll get a worker compensation or unemployment check because some liberal didn’t think he should loose his home because of his temporary misfortune.

Its noon time, Joe needs to make a Bank Deposit so he can pay some bills. Joe’s deposit is federally insured by the FSLIC because some liberal wanted to protect Joe’s money from unscrupulous bankers who ruined the banking system before the depression.

Joe has to pay his Fannie Mae underwritten Mortgage and his below market federal student loan because some stupid liberal decided that Joe and the government would be better off if he was educated and earned more money over his life-time.

Joe is home from work, he plans to visit his father this evening at his farm home in the country. He gets in his car for the drive to dads; his car is among the safest in the world because some liberal fought for car safety standards. He arrives at his boyhood home. He was the third generation to live in the house financed by Farmers Home Administration because bankers didn’t want to make rural loans. The house didn’t have electric until some big government liberal stuck his nose where it didn’t belong and demanded rural electrification. (Those rural Republican’s would still be sitting in the dark)

He is happy to see his dad who is now retired. His dad lives on Social Security and his union pension because some liberal made sure he could take care of himself so Joe wouldn’t have to. After his visit with dad he gets back in his car for the ride home.
He turns on a radio talk show, the host’s keeps saying that liberals are bad and conservatives are good. (He doesn’t tell Joe that his beloved Republicans have fought against every protection and benefit Joe enjoys throughout his day) Joe agrees, “We don’t need those big government liberals ruining our lives; after all, I’m a self made man who believes everyone should take care of themselves, just like I have”.



I just realized, his name is Joe, too. :confused:
 
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Unfortunately for Mr. Oberstar, DL has carefully chosen to orchestrate this deal at the right time....it's the perfect storm. By the time a final decision to thwart any merger plans comes to fruition, the economy will be in deep doo doo and both floors of Congress plus any State Gov't officials will see that there is no other choice. The US will be backed into a corner to let these giants merge for no other reason than it is necessary to preserve the national security of the country.

Oberstar is doing the proper thing in posturing for NWA at this point. He is trying to get the best deal he can for NWA, plus preserve high paying jobs for Minneapolis. It's possible the merged giants could headquarter in MN, but still maintain the DL moniker. This is a decision that Anderson/BOD will have to look at when considering an option to go with UAL. I think UAL would be willing to cave to DL demands much more so than NWA.

In the end, Oberstar will conclude that it's in the best interest of MN to go with a DL deal if he sees that he has no chance of stopping a DL/UAL merger.

:pimp:​
 
If anyone remembers deregulation - this is very much like the pattern that erupted then. The common thinking was that an airline had to be the largest to survive.

Guess "open skies" is seen as the same threat with the same competitive response.
 
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deregulation has already hurt us now that we are supposed to be unregulated, airlines should be free to do business as they choose and let the market decide who is going to succeed
 
It will be called "Air France-KLM-Northwest-Delta Holdings". We will compete like regionals for new aircraft under the international holding company.
 
What should the price of a 121 pilot be?

The price of an airline ticket from SFO to JFK is the same now as it was 30 years ago...... Everything has increased in that time exept for the pay of the employees.....


Joe, sounds like you are endorsing a Socialist economy. I thought you were an advocate for business.

I think the price of a 121 pilot should be a rate that the market commands. Unfortunately, we have a lot of pilots out there that are willing accept the reward of flying nice, new, large and shiny equipment at an extremely low wage.
 

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