US DOJ Suing to Block Meger of AMR and US Airways

[brokedash]

Most of the states that are party to this suit host a huge presence by either US or AA. Some such as Florida are ensuring they won't loss status with the combined entity. Others such as AZ want to make sure the get some $ out of this for all the lost tax revenue off of employees that re-locate with HQ and the possible PHX downsizing. Texas wants to make sure all the small markets that are AA strong, don't lose a single flight or un-nessecary fare increase.

The Feds are in this because someone paid them, simple as that. Probably UA and DL worried about the amount of TATL market share the combined US/AA would carry out of JFK and PHL.

 

[Old School 737]

Great sale today on ALK stock. I'm not letting this chance go by!

It will go lower when we buy the USair West...

 

[Old School 737]

It's all over anyway .. Once the Hyperloop is built who needs planes and pilots..

 

[WSurf]

It's all over anyway .. Once the Hyperloop is built who needs planes and pilots..

Lubes and Tubes!!!

 

[tomgoodman]

Toll Road to a Merger

If you are a motorist and some official in a booth lowers a barrier in front of you, he does not want you to turn around and go home. He wants you to hand over a payment, and if you don't know how much, he will tell you.

 

[General Lee]

So, if the DOJ is successful in blocking this for some reason, what happens to the raises for the USAir pilots? Will there be an increase in NOV? Ouch. At least the West guys will get the NIC award most likely, that could help them with future upgrades.


Bye Bye---General Lee

 

[JumpersAway]

Interresting discussion on NPR about this. One of the Assistant General Attorneys was basically saying that the government had "buyer's remorse", from allowing the DAL and UAL mergers. Another analyst basically said that American's entire bankruptcy plan REVOLVES around this, and that without it, there are huge issues ahead for them. I think there are screws being turned by many parties here, all looking for a piece of the pie. I think DAL would certainly benefit from this- USAirways has to give up the slots into DCA, and I'm betting DAL is a heavy bidder on them.

 

[drinksonme]

Either way, they are down to 4 "Major"'s. USAirways need merger to survive, AA needs is to exit BK. One will note make it. Careful what you wish for Eric.

 

[SAABaroowski]

Well I guess the CEOs will have to eat their words. Didnt they say numerous times they both would be just fine on their own and they didnt necessarily "need" this merger.

 

[scoreboardII]

they'll be fine on their own, right after each cuts 20%, reducing flights, and increasing fares further. But lets not think Holder cares about that side of the equation. He hasn't cared about reality yet, why start.

 

[Smarta$$]

Either way, they are down to 4 "Major"'s. USAirways need merger to survive, AA needs is to exit BK. One will note make it. Careful what you wish for Eric.

Can you please characterize US Air and American's most recent quarterly reports for us?

 

[Hpilot]

It will go lower when we buy the USair West...

Sounds good to me, I would have liked to have been an American pilot, but I'll glady fly the eskimo.

 

[Hpilot]

Just have to love the Obama regime. For the middle class, yeah right. Everyone takes a paycut and American will lay off a bunch of, yes that's right, middle class workers. How many more years of this clown? I'll bet when election time next comes around the unions will think twice about supporting a Democrat.

 

[cbrown1]

well I guess the mou payrates are gone.

 

[Deadalus]

I may be a bleeding heart liberal, but even I have to say; what the #$@K? I read the transcript from the DOJ and I can't believe how much they are overstepping their bounds. Blown away when they commented negatively on the management plan. That is not their business to say, that is up to the BK court judge. I know a little bit about the law and I don't like it when this kind of stuff happens, because it give the right wing wackos ammunition for their, "communist, lefty, conspiracy, government," rants.

 

[Hpilot]

well I guess the mou payrates are gone.

Yes, looks that way. But look on the bright side. The same administration that just helped give us a huge paycut is pushing to raise the minimum wage!!! Whopeeeeee!

 

[johnsonrod]

I may be a bleeding heart liberal, but even I have to say; what the #$@K? I read the transcript from the DOJ and I can't believe how much they are overstepping their bounds. Blown away when they commented negatively on the management plan. That is not their business to say, that is up to the BK court judge. I know a little bit about the law and I don't like it when this kind of stuff happens, because it give the right wing wackos ammunition for their, "communist, lefty, conspiracy, government," rants.

Obama's government believes they have to protect YOU from YOURSELF. Just remember that and thank them profusely... :laugh: The Constitution is disregarded at will.

Regarding the merger, has there been any precedent for merger partners actually fighting this type of Gov't lawsuit and winning? I don't recall any proposed merger going through with this type of Government backlash - especially with 6 "bipartisan" Attorney Generals involved... I am surprised that the Texas AG got involved because I thought the HQ would move to DFW and most of those local jobs would be saved.... This is not good.

 

[Rick James]

The GDP was shrinking at -5.4% after 8 years of a Republican administration and in the economy was in the midst of the worst recession in a few generations. Since Obama took office the economy has grown in 15 of 17 quarters, including nine straight. But hey, why let facts get in the way of partisan rhetoric.

Take away QE1, QE2, QE3, and "Operation Twist", how much would the economy have grown under the Obama Administration? It's actually very easy to see why we had "growth". But hey, lets not look at ALL the facts, just the convenient ones.

 

[aviator82]

Obama's government believes they have to protect YOU from YOURSELF. Just remember that and thank them profusely... :laugh: The Constitution is disregarded at will.

Regarding the merger, has there been any precedent for merger partners actually fighting this type of Gov't lawsuit and winning? I don't recall any proposed merger going through with this type of Government backlash - especially with 6 "bipartisan" Attorney Generals involved... I am surprised that the Texas AG got involved because I thought the HQ would move to DFW and most of those local jobs would be saved.... This is not good.

No merger in US history has ever been approved after being blocked by the DOJ.

 

[Guppiedriver]

No merger in US history has ever been approved after being blocked by the DOJ.

Wrong.

http://money.cnn.com/2013/04/19/news/companies/modelo-anheuser-busch/index.html