US DOJ Suing to Block Meger of AMR and US Airways

[Bringupthebird]

. Even if a judge eventually rules that the NIC must be used, and it holds up on the inevitable appeal, you still have to get the pilot group to vote on a new contract that includes the NIC.

The pilots have proven they are willing to do that by passing the sub-standard MOU. USAPA was the only ones unwilling to allow the pilots to vote on an improved contract because it jeopardized their tyrannical rule.

I would bet USAPA would go down in defeat easily in a representation election. They have no record to run on. Just the inertia of fear and ignorance.

 

[pave driver]

This is all due to negotiation over the amount of DCA slots the combined business enterprise needs to surrender to prevent the DOJ's lawsuit from proceeding.

This was not a surprise. American and US Airways' execs knew the DOJ was going to file their suit because they were unwilling to give up the DCA slots the DOJ desires because it would create fare destablization.

Unless the DOJ files a petition for an emergency hearing and seeks a preliminary injunction, AMR's merger POR will be confirmed tomorrow. DOJ and US/AA will agree on slot divestitures within the next two weeks, and the POR/merger will be executed on August 29th.

It's a misnomer that federal regulators can block a merger. They can file a lawsuit to block a deal and DON'T have unilateral authority to disapprove a merger.

The corporate combination will proceed. Tomorrow Lane will approve it. The next couple weeks DCA divestitures will occur and the whole deal will be done this year.

 

[cbrown1]

This is all due to negotiation over the amount of DCA slots the combined business enterprise needs to surrender to prevent the DOJ's lawsuit from proceeding.

This was not a surprise. American and US Airways' execs knew the DOJ was going to file their suit because they were unwilling to give up the DCA slots the DOJ desires because it would create fare destablization.

Unless the DOJ files a petition for an emergency hearing and seeks a preliminary injunction, AMR's merger POR will be confirmed tomorrow. DOJ and US/AA will agree on slot divestitures within the next two weeks, and the POR/merger will be executed on August 29th.

It's a misnomer that federal regulators can block a merger. They can file a lawsuit to block a deal and DON'T have unilateral authority to disapprove a merger.

The corporate combination will proceed. Tomorrow Lane will approve it. The next couple weeks DCA divestitures will occur and the whole deal will be done this year.

I sure hope you're right.

 

[TMMT]

http://online.wsj.com/article/SB10001424127887323971204578627933587859550.html

One potential focus is the combined position of American and US Airways at Reagan National Airport near Washington, D.C. Rival airlines, seeing the possibility for getting some slots if a divestiture is required, have emphasized that American and US Airways control about 50% of the seats and two-thirds of the flights at Reagan National.

 

[eskimopilot]

Who and what political party were the ones to relax the oversight and the rules on who could qualify for a house? Who were the ones who decided that everyone deserves a house? I'll help you it was the Dems that enabled the speculation and made the housing collapse possible which in turn took the economy with it.

Who was it in 2002 that wanted 5.5 million more minority home owners by 2010?
Who was it that said "The goal is, everybody who wants to own a home has got a shot at doing so. The problem is we have what we call a homeownership gap in America. Three-quarters of Anglos own their homes, and yet less than 50 percent of African Americans and Hispanics own homes. That ownership gap signals that something might be wrong in the land of plenty. And we need to do something about it."
Who was it who called for industry reductions in down payments for homes to fulfill this dream?
Who was it who said that home ownership rules were too complex, "too many words" and should be simplified so that it is easier to buy a home?
Who was it that called on Fannie Mae to put up 440 Billion, to make his dream come true?
Despite what you say the facts just don't support your position. It's funny how people forget George Bush. Doesn't anyone remember his "ownership society"?
Home ownership was a cornerstone of this plan.
I am pasting the link to his speech to HUD in Washington, DC on Tuesday, June 18, 2002. Perhaps you should read it and reasses your position.
Or you could just keep making statements like the ones above without any regard for the facts. Then we can continue with this ridiculous partisanship that will lead to achieving absolutely nothing.

http://archives.hud.gov/remarks/martinez/speeches/presremarks.cfm

Regards.

 

[reepicheep]

They can't block a merger what they can do is cause such a delay and force so many changes to the original plan as to effectively kill it anyway. Basiclly what happened to US/ UA in 2000. I think this is your biggest worry for this deal.

 

[rjacobs]

Who was it in 2002 that wanted 5.5 million more minority home owners by 2010?
Who was it that said "The goal is, everybody who wants to own a home has got a shot at doing so. The problem is we have what we call a homeownership gap in America. Three-quarters of Anglos own their homes, and yet less than 50 percent of African Americans and Hispanics own homes. That ownership gap signals that something might be wrong in the land of plenty. And we need to do something about it."
Who was it who called for industry reductions in down payments for homes to fulfill this dream?
Who was it who said that home ownership rules were too complex, "too many words" and should be simplified so that it is easier to buy a home?
Who was it that called on Fannie Mae to put up 440 Billion, to make his dream come true?
Despite what you say the facts just don't support your position. It's funny how people forget George Bush. Doesn't anyone remember his "ownership society"?
Home ownership was a cornerstone of this plan.
I am pasting the link to his speech to HUD in Washington, DC on Tuesday, June 18, 2002. Perhaps you should read it and reasses your position.
Or you could just keep making statements like the ones above without any regard for the facts. Then we can continue with this ridiculous partisanship that will lead to achieving absolutely nothing.

http://archives.hud.gov/remarks/martinez/speeches/presremarks.cfm

Regards.

Thats all well and good, but that ******************** started WAY BEFORE GWB was in office. Keep going back a few more presidents(late 70's early 80's) and see who really started it. Every president since then has either expanded it or changed it to meet their vision(including the current). I believe Clinton did more to make home ownership easier than GWB did.

ETA: Read the book "The Big Short" to get the real story behind the housing collapse and the subsequent financial collapse. Even the damn banks doing the deals didnt realize what they were doing and how bad it was. If that is the case, do you really think the government would realize this(if they even knew what was going on) and tried to put a stop to it?

 

[rjacobs]

I have been saying the sticking point is DCA as soon as I saw the announcement. If the DOJ wants them to give up some slots, I say give most of em up and make DCA into a spoke instead of a small hub that it is today. Pull everything out except service to ORD, NYC, DFW, PHL, and CLT. Then see how the DOJ likes the merger, my guess is they wont like that plan either.

 

[APFPilot]

How many of you who think the sticking point is the DCA slots have read the actual complaint or the US DOJ PR? There is much more to the complaint that that.

 

[Smarta$$]

Who and what political party were the ones to relax the oversight and the rules on who could qualify for a house? Who were the ones who decided that everyone deserves a house? I'll help you it was the Dems that enabled the speculation and made the housing collapse possible which in turn took the economy with it.

Who was in control of both the houses when the economy started to tank? Who held the purse strings when it all started to go to hell. Once again the Dems. Who has been printing money at a rate of 85 BILLION a month and spending a rate that has nearly doubled our national debt? The dems. Who were in complete control of all branches of the government for two years yet nothing seemed to get done except more blame on the GOP which afterword has a slim majority in one branch of the government?

The discussion was about things that prop up Obama's economy. Regarding Bush's economy, and without regard for who/what caused the housing bubble, the fact remains that we had a massive housing bubble. Bubbles have an inflation cycle and a bust cycle. The bubble burst at the end of Bush's presidency, but it inflated during most of his presidency. The inflation of the housing bubble during Bush's terms had an extremely tremendous POSITIVE impact on his economy. It is actually hard to overestimate how much economic activity was created by the housing bubble, if you don't understand that, I guess I could lay it out chapter and verse for you, but you really shouldn't even be having this discussion if you don't at least understand that much. Now all that economic activity was an illusion, but it was very powerful at the time.

Without the inflation cycle of the housing bubble, Bush would have had a declining economy throughout his presidency. And that was with tax cuts, easy fed money, artificially low interest rates, a stimulus package and stimulitive war spending......

Read that again, without the inflation cycle of the housing bubble, Bush would have had an economy in decline. Period.