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

[Saluki Dawg]

AA leases 1 gate to DL and 1 to Seaport Airlines. My guess is that DL gets the option to retain the gate they're currently using and WN gets the other gate IF no other Airline comes forward and asks to serve DAL.

 

[Flopgut]

I'm pretty sure this is how we know SWA is in the room when the decisions are made. This is simply a bit of chin music sent at American.

I realize I sound like a broken record talking about Love Field and the issues around it. But this should be a bit of redemption. Love is a microcosm for what this Country has in place of a real policy on airlines. SWA is who they care about.

 

[SWA Bubba]

My head exploded.

Seriously, who is actually low fare these days? Holder has no idea what he's talking about.

Why are gates at Love included in this deal?

That IS a good question, and something I don't think anyone saw coming.

The only thing I can come up with is, that it was part of a calculated face-saving move. It was starting to look like the DOJ was having second thoughts about the suit in general, and was looking to make a deal. If you notice, a lot of the assets claimed to be "divested" in the agreement were gates/slots that American/USAir weren't actually using in the first place. Besides the DAL gates, it included LGA and DCA slots that were actually subleased to other airlines.

My guess would be (and it's only a guess) that it was American who offered to "divest" the DAL gates as well, since they weren't actually using them anyway. That way their package of divestitures looks bigger on paper (the DOJ is happy because it looks like they got more from the deal), and the new American is happy because they weren't giving up anything more that they were actually using. "Giving up" something they weren't actually using costs them nothing. It was a win-win, face-saving compromise.

That's the only thing I can come up with. I don't think there's any big Southwest conspiracy here, Flop. The actual divestitures at DCA and LGA will be fought over, and probably split amongst several airlines, of which it's not secret that Southwest hopes to be included in.

Bubba

 

[scoreboardII]

I'm pretty sure this is how we know SWA is in the room when the decisions are made. This is simply a bit of chin music sent at American.

I realize I sound like a broken record talking about Love Field and the issues around it. But this should be a bit of redemption. Love is a microcosm for what this Country has in place of a real policy on airlines. SWA is who they care about.

As they should, all hail SWA.

Really dude?

 

[Metrojet]

That IS a good question, and something I don't think anyone saw coming.

The only thing I can come up with is, that it was part of a calculated face-saving move. It was starting to look like the DOJ was having second thoughts about the suit in general, and was looking to make a deal. If you notice, a lot of the assets claimed to be "divested" in the agreement were gates/slots that American/USAir weren't actually using in the first place. Besides the DAL gates, it included LGA and DCA slots that were actually subleased to other airlines.

My guess would be (and it's only a guess) that it was American who offered to "divest" the DAL gates as well, since they weren't actually using them anyway. That way their package of divestitures looks bigger on paper (the DOJ is happy because it looks like they got more from the deal), and the new American is happy because they weren't giving up anything more that they were actually using. "Giving up" something they weren't actually using costs them nothing. It was a win-win, face-saving compromise.

That's the only thing I can come up with. I don't think there's any big Southwest conspiracy here, Flop. The actual divestitures at DCA and LGA will be fought over, and probably split amongst several airlines, of which it's not secret that Southwest hopes to be included in.

Bubba

And I got something from Southwest yesterday -

They generously gave me a ride home! Thanks Bubba!

Metrojet

 

[Flopgut]

Really dude?

Yeah, really. There is absolutely no other reason for Love Field real estate to be in this equation.

 

[SWA Bubba]

I'm pretty sure this is how we know SWA is in the room when the decisions are made. This is simply a bit of chin music sent at American.

I realize I sound like a broken record talking about Love Field and the issues around it. But this should be a bit of redemption. Love is a microcosm for what this Country has in place of a real policy on airlines. SWA is who they care about. SWA will not want, will not suffer, and will not have to compete in fair markets. This is a message to the surviving mgt at American "don't forget who we care about".

Good analogy, Flop--you DO sound like a broken record talking about Love Field.

If SWA was "who they care about," then there never would have been a Wright Amendment in the first place. Trust me, Southwest has "wanted" and "suffered" in the Dallas area since 1979, due to that little piece of protectionist political payback from Representative Wright to American. You bitch about our little "monopoly" operation at Love all you want, but you're wrong. Airlines have come and gone at Love as much and as often as they wanted over the years (including American, several times); they just never wanted to stay. They left because Love was too small for them, and it wasn't worth their while. However, there was always plenty of room for them to try. And try they did, with no interference from Southwest. That was, of course, before the compromise agreement to end Wright. Love Field is now limited to 20 gates total, at American Airline's behest, to limit how big Southwest can grow from there.

Anyway, if you're really worried about the Dallas area and "monopolies," consider this: of all the combined commercial air traffic from the two airpo0rts, 86% of the total departures are American Airlines. And that's including Love Field's departures, Flop! And as time goes by, and American gets even bigger (while Southwest is limited to the same number of gates), it'll only get more lopsided.

Put another way, that means that for every one departure Southwest has from Love Field, American has, on average, eighteen or twenty departures from DFW. And you're seriously worried about Southwest's monopoly? Yeah, you're a broken record alright.

Bubba

 

[Flopgut]

It is what it is Bubba

 

[Old School 737]

We already have the pay and the contract, retroactive back to Feb. 8, so Doug has zero incentive to play the "neutral" game this time.

Does that all start before a combined seniority list ??
If so good on ya

 

[AeroDMB]

Does that all start before a combined seniority list ??
If so good on ya

Pay rates have been established and effective upon POR, which is closing of the merger first half of December. The finer details and nuts and bolts of the JCBA, not yet.

http://aviationblog.dallasnews.com/...an-to-a-Merger-MOU-explainer-January-2013.pdf