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Wall Street Jornal: NWA "reworks plan for merger"

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You are wrong. The Delta pilots can block a deal and have already demonstrated this with the previous US Airways attempt. The fact Doug from AWA was able to buy/combine with US Airways who was in dire straits is not the same.

:laugh::laugh::laugh::laugh::laugh::laugh:
 
You are wrong. The Delta pilots can block a deal and have already demonstrated this with the previous US Airways attempt. The fact Doug from AWA was able to buy/combine with US Airways who was in dire straits is not the same.

LOL, dude, if you really think that, then you're a lost cause.

The DAL/USAir thing didn't happen because the DAL Board didn't want it to happen. The DAL pilots, in this case, were simply window dressing.

Once you are on the opposite side, you'll see how fast a steamroller can actually go.

Nu
 
There's no barracks in the Air Force dumb dumb.
:laugh: :laugh:


By the way, I'm probably well over 1800 hours if I get a multiplier.
AAAAHHH, the ever famous multiplier. I bet that's what you told her last night when she went running out the door crying:crying: !!:laugh:

Come on private, the colonel needs his night time foot rub, and there are plenty of copies to be made!
Chop chop junior!

737
 
:laugh: :laugh:



AAAAHHH, the ever famous multiplier. I bet that's what you told her last night when she went running out the door crying:crying: !!:laugh:

Come on private, the colonel needs his night time foot rub, and there are plenty of copies to be made!
Chop chop junior!

737

Hey ding-a-ling, there's no privates in the Air Force. Just like there's no such thing as well paid Delta pilot.:laugh: :laugh:

I be they give the NWA guys the better seniority in exchange for you guys going to their pay levels. You guys are spineless. You'll take that deal with Anderson forces it down your throat. He's totally going to get a huge bonus!
 
The decision to proceed with a corporate merger of NWA and DAL does not rest with the pilots of either carrier, nor Anderson, nor Steenland. The decision rests with the BOD of DAL and NWA.

The rest is just rhetoric.
 
Hey ding-a-ling, there's no privates in the Air Force. Just like there's no such thing as well paid Delta pilot.:laugh: :laugh:
Yet still better paid than our cohorts at UAL,NWA,LCC......

I be they give the NWA guys the better seniority in exchange for you guys going to their pay levels. You guys are spineless. You'll take that deal with Anderson forces it down your throat. He's totally going to get a huge bonus!

I'm sorry private, I don't speak retardese, can you pleas get your caretaker to translate the bottom sentence after they're done changing your diaper....
Remember, multiplier sport........ its the only way you can "measure up" to the guys in the squadron!;)

737
 
LOL, dude, if you really think that, then you're a lost cause.

The DAL/USAir thing didn't happen because the DAL Board didn't want it to happen. The DAL pilots, in this case, were simply window dressing.

Once you are on the opposite side, you'll see how fast a steamroller can actually go.

Nu

You are high if you think these mergers will just whoosh on through just because Delta or NWA managment want them. The government is already against these for a variety of reasons. There is already the perception that creating a few big airlines will jack prices up and cost elected officials with many voting constituents their jobs. The powers that be know this and will not just wave the white flag to make some hedge fund managers and corporate managers more money. You seem to think these mergers are easy to get done. You are wrong. It wont take a very big straw to break this camels back while trying to get approval. But you dont seem to understand that.
 
http://findarticles.com/p/articles/mi_m0CWU/is_2001_July_30/ai_76849689

US government blocks United Airlines-US Airways merger

Airline Industry Information, July 30, 2001

AIRLINE INDUSTRY INFORMATION-(C)1997-2001 M2 COMMUNICATIONS LTD

United Airlines and US Airways have officially called off their merger after the US Justice Department blocked the USD4.3bn deal.
The department said that the proposal, which would have created world's largest airline, would "reduce competition, raise fares and harm consumers."
Attorney General John Ashcroft said: "While mergers can further competition, this one does not. If this acquisition were allowed to proceed, millions of consumers... would have little choice but to pay higher fares and accept lower quality air service."
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As part of the agreement to terminate the merger proposal, UAL Corp, the parent company of United Airlines, will pay US Airways a breakup fee of USD50m.
US Airways indicated that it would announce its next move soon, reported The Associated Press.
 
Antitrust Challenge Stops United Merger With US Airways

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By KENNETH N. GILPIN
Published: July 28, 2001
United Airlines' $4.3 billion bid to acquire US Airways died yesterday after the Justice Department said it would go to court to block the deal. The government asserted that the proposed takeover would ''reduce competition, raise fares and harm consumers'' on airline routes across the country.
Shortly after the government's announcement, US Airways, a unit of the US Airways Group, said it would no longer pursue the transaction.
''While disappointed that the merger with United will not go forward, we nevertheless must respect the Justice Department's decision,'' a US Airways statement said.
United's parent, the UAL Corporation, also issued a statement, saying, ''UAL Corporation and US Airways have terminated their merger agreement.''
The government's opposition to the deal did not come as a surprise, and analysts said it seemed to indicate antitrust enforcement in the Bush administration would not differ much from the approach taken by the Justice Department under President Bill Clinton.
''There was a naïve sense on the part of people who don't pay attention to antitrust that Republicans would differ a lot from Democrats when it came to enforcing antitrust laws,'' said Jeff Eisenach, president of the Progress and Freedom Foundation, a free-market research organization based in Washington.
''The challenge in the US Airways case was to see whether there was a way around some fairly substantial market power issues,'' he added. ''What this indicates is, first, that those attempts were not successful and second, just any old merger won't fly under the Bush administration.''
Steven C. Sunshine, who from 1993 to 1995 served as the Justice Department's deputy assistant attorney general for merger enforcement, said: ''I don't think this administration will be as aggressive on all fronts as its predecessor. But in mainstream merger cases they are going to continue to bring cases.''
Wall Street analysts said the collapse of the proposed takeover removes what could have been a financial albatross for UAL, which along with much of the airline industry is suffering losses. And it once again raises questions about the strategy US Airways will pursue to remain viable.
Signs that the deal was in serious trouble had popped up repeatedly. Earlier this month, UAL tried to stop the merger, fearing regulators would block the deal. US Airways persuaded United to wait for a government announcement.
Had United pulled out of the merger before Aug. 1, when the offer was scheduled to terminate, US Airways could have sued UAL for reneging on the takeover agreement. Under the terms of the merger agreement, United is obligated to pay US Airways a $50 million breakup fee.
The proposed deal had faced fierce opposition from a wide swath of critics -- including consumer groups, competitors and members of Congress -- ever since the agreement was struck 14 months ago.
Essentially, the groups feared the anticompetitive effects of combining United, the nation's second-biggest airline, with No. 6 US Airways.
''This merger would have led to a consolidated U.S. domestic aviation market of three megacarriers,'' said Representative Louise M. Slaughter, a Democrat who represents the Rochester area. ''Fliers would have been forced to pay sky-high fares and with fewer planes in fewer markets.''
The Justice Department essentially agreed with that assessment.
''The acquisition would give United a monopoly or duopoly on nonstop service over 30 routes,'' the government said, ''where consumers spend over $1.6 billion annually, and substantially limit the competition it faces on numerous other routes representing over $4 billion in revenues.''
Robert Litan, vice president and director for economic studies at the Brookings Institution, said the ''level of public hostility to the merger was larger than either of the parties anticipated at the outset.''
''Congress doesn't tell Justice what to do, but it does provide strong background music,'' he continued.
When the deal was announced, United said the combination would allow millions of travelers in the Northeast, where US Airways is strong, to tap into its vast network of flights to the Midwest and West Coast and, on partner airlines, to Europe and Asia. The airline also pledged not to raise fares on some domestic routes for at least two years except for price increases needed to cover inflation and higher fuel costs.
 
United-US merger finally killed off

_1418417_usair300.jpg
United's take-over of US would have been the biggest airline acquisition in history


United Airlines and US Airways have called off their planned merger for a second time after the US Justice Department threatened to block the deal.
startquote.gif

While mergers can further competition, this one does not
endquote.gif

US Attorney General John Ashcroft
The $4.3bn merger was initially called off by United at the start of July.
The world's second largest airline is understood to have been concerned that the deal would not gain regulatory clearance and worried about the downturn in the US economy.
But hopes were revived just 10 days later at the insistence of US Airways, which said threatened to take legal action if United walked away.
Friday 's decision by the Justice Department is expected to finally kill hopes of a take-over.
UAL, the parent of United Airlines, has agreed to pay the $50m termination fee provided for in the merger agreement.
Reduced competition
The Justice Department said the United take-over, which would have been the largest-ever airline purchase, would have reduced competition, raised fares and harmed consumers.
"UAL Corporation intends to work with US Airways to determine the appropriate steps that need to be taken now that US Airways has acknowledged that the merger with United will not go forward," United said in a statement.
US Airways said it was disappointed that the deal was called off.
"We nevertheless must respect the Justice Department's decision," it said in a statement.
Federal government officials said families taking holidays, corporate customers and the federal government itself, which spends millions on air travel, would pay the price if the merger were allowed to go ahead.
Higher fares
Attorney General John Ashcroft said: "While mergers can further competition, this one does not."
_1418417_united150.jpg

United's profits have slipped amid an economic slowdown


"If this acquisition were allowed to proceed, millions of consumers . . . would have little choice but to pay higher fares and accept lower quality air service."
The merger would have given United a monopoly or duopoly on nonstop service on more than 30 routes and substantially limit competition on numerous other routes, the Justice Department said.
Consumer choice in airlines would have been severely restricted in hub-to-hub nonstop markets like Philadelphia-Los Angeles, San Francisco-Denver and Pittsburgh-Washington, where US Airways and United are each other's only nonstop competitor, the department said.
Consumers would also have had fewer options on international routes.
Future prospects
US Airways said a merger with the world's second biggest airline, United, was its best chance to remain profitable in an increasingly competitive industry.
While United, which has been surpassed as the world's biggest carrier by American Airlines, has lost nearly $1bn since the deal was proposed and has been hit by labour and operational problems.
Ray Neidl, a New York-based airline analyst for ABN Amro, said that with a formal rejection of the merger, United can "try to get back to trying to fix their airline and cut back the losses they're experiencing, which are much larger than the rest of the industry's." He added: "US is going to have to find another deal or sell their airline off in pieces."

 

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