U.S. government, two airlines say open to settling merger fight

[Dornier 335]

Sounds like Florida is about to drop their lawsuit. How much longer can Baer continue this sh! Tshow???
#obamacare#baerrapesgoats

Source?

 

[CFIfornow]

Florida AG info.

http://www.bloomberg.com/news/2013-...with-florida-over-merger-suit.html?cmpid=yhoo

 

[cbrown1]

Source?

http://aviationblog.dallasnews.com/...-theyre-hopeful-for-a-timely-resolution.html/

 

[dollacrackho]

Hmm pam bondi. Me thinks I'd hit that.

 

[Tweaker]

yes

yes I would!

 

[711-24-7]

U.S. antitrust authorities want to see a broad package of divestitures from AMR Corp. AAMRQ +7.48% and US Airways Group Inc. LCC +2.14% as part of any deal to settle the government's challenge to their merger plan, people familiar with the matter said.

The people said talks are under way between the two sides three weeks before a trial of the antitrust challenge is set to open in Washington.

The Justice Department's antitrust suit, which sought to block the merger of AMR's American Airlines and US Airways, argued that the deal would harm consumers by reducing air service and increase fares. It listed more than 1,000 routes on which regulators believed competition would suffer.

The opening of settlement talks suggests that the government isn't taking an absolute stand against the deal, and that a trial isn't a certainty. At the same time, however, the airlines might resist the broad concessions that the government is seeking.

A person familiar with the Justice Department's thinking said department lawyers insist that any settlement should include divestitures at key airports throughout the U.S. The department believes that the two airlines would need to divest assets at those airports to ensure that their merger wouldn't limit consumer choices on nonstop and connecting flights or harm consumers by raising fares, this person said.

The airlines are prepared to give up slots at Reagan National Airport outside Washington, where US Airways is already the dominant carrier, and make some divestments at other U.S. airports, two people familiar with the negotiations said last week. A person familiar with the process said Sunday that the airlines' settlement proposal would include divestments at other U.S. airports besides Reagan National.

Some of the busiest U.S. airports have limited room for competitors to expand, either because takeoff and landing slots are limited or because there aren't enough gates. LaGuardia and John F. Kennedy International airports in New York are among those with limited slots, while airports in Chicago and Los Angeles have limited gate space.

Another asset in limited supply is permission to fly to some international destinations. US Airways recently obtained rights to offer service to S?o Paulo, Brazil.

If combined at their current size, AMR and US Airways would vault past United Continental Holdings Inc. UAL +4.68% and Delta Air Lines Inc. DAL +1.21% as the largest carrier in the world by traffic. AMR and US Airways say the merger would offer fliers more choice and a bigger route network.

The Justice Department's suit challenging the merger warned against overconcentration in the U.S. air-travel market if the deal went ahead as planned, because it would leave the U.S. with just four airlines controlling more than 80% of the domestic market.

Both sides have said they are prepared to go to trial, which is scheduled to begin Nov. 25.

 

[dollacrackho]

What does the government want? All of Americans dc slots and what else? Don't tell me they need anything given up in ny. Why so delta can have more of a stranglehold on lga and jfk? What other cities are we talking about here?

 

[JumpersAway]

This is irritating, to say the least. Divest slots in DCA?????? Has anyone realized that you will soon be able to take the DC Metro Silver Line to IAD? Who is going to grab up more LGA slots- DAL pretty much owns the place already. I have to give it to the DOJ- they've certainly done a fantastic job of manipulating the facts to suit their argument. They remind me of a skeezy used car salesman in a cheap suit.

 

[dollacrackho]

Eff em. It's almost time for the trial anyways. Here's a few token slots for ya at Reagan and a few slots at wherever. Oh no not good enough Mr Baer well shove it up your greasy palmed backroom dealing a $$.

 

[cheapgreek]

What does the government want? All of Americans dc slots and what else? Don't tell me they need anything given up in ny. Why so delta can have more of a stranglehold on lga and jfk? What other cities are we talking about here?

US gave the store away with the LGA-DCA slot swap with DL. 132 LGA slots for 42 DCA slots, whats wrong with this deal?
I want this to go to trial, too many mergers in the last few years and the DOJ finally has awakened. AA can compete just fine, its US that needs this merger as it brings very little to the table compared with AA.