US DOJ Suing to Block Meger of AMR and US Airways

[rjacobs]

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.

Im not trying to say DCA is the only reason that the DOJ is doing this, but I would bet that it is one of the MAIN reasons and that the people across the river were pushing this.

Without the combined company having such a huge presence in DCA I bet the DOJ would have gone to USAir/AA and done things much more quietly. Instead they have to make it a political spectacle so that certain people in the capital can go to their constituents and say "look, we FOUGHT for you and got the DOJ to do this, this, and this to protect YOU" even though in reality it wont do any of those things.

 

[Turtle21]

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.

When the economy took a nose dive only months after United agreed to pay an insanely high premium for USAir, United was begging the DOJ to save them from that disastrous deal.

 

[Rick James]

And the Bush economy, which ended so terrible as it did, would have been a giant crater throughout, without the housing bubble propping it up....

I would never debate conjecture, nor should any intelligent individual. What I will debate is what our GDP growth would have been without the stimulus programs over the course of the Obama administration.

 

[spitfire1500]

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.

Wishful Thinking....

 

[Smarta$$]

I would never debate conjecture, nor should any intelligent individual. What I will debate is what our GDP growth would have been without the stimulus programs over the course of the Obama administration.

Nothing I said was really debatable.

 

[pave driver]

Wishful Thinking....

Objective not subjective -Lane gave the green light on all items and now wait on the conclusion on the DOJ settlement meetings.

 

[Metrojet]

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.

Well, the judge delayed the POR until Aug 29, but I do agree that the slot divestiture will occur within in the next two weeks from what I heard from someone in DCA

Metrojet

 

[Rick James]

Nothing I said was really debatable.

Have you suffered some type of brain trauma?

 

[cbrown1]

Well, the judge delayed the POR until Aug 29, but I do agree that the slot divestiture will occur within in the next two weeks from what I heard from someone in DCA

Metrojet

What have you heard?

 

[vetrider]

What have you heard?

I was going to ask the same thing, if he could elaborate on that a little.