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Justice Dept. Clears Merger of US Airways, American Airlines
American Airlines and US Airways Group Inc. have reached a settlement with federal regulators in the U.S. lawsuit seeking to block their $17.2 billion merger, a person familiar with the matter said. A deal with the Justice Department will be announced today, the person said, asking not to be identified because the negotiations are private. The two sides have been discussing airline concessions such as ceding flight slots at Washington’s Reagan National Airport, people familiar with the… (www.bloomberg.com) Más...Sort type: [Top] [Newest]
This is a disaster for both the industry and the flying public. Recent press reports of delays, incompentence and poor practice by cactus are no surprise. I refuse to travel on USAirways, or 'useless airways', as some call them. I'm happy that they shall no longer be part of the Star Alliance. In my opinion, no amount of $$ P.R. by AMR can reverse the years of gouging, delays, rude employees and inferior equipment shall save them.
These mergers restrict competition and create monopolies that increase prices. Remember the oil mergers.
The term you mean to use is oligopoly. All major airports (large and mid-sized will be served by multiple carriers. The largest airports are served by all te major players.
Only the smallest of destinations are served by only one airline. If they could sustain service by more than one carrier they would already have multiple carriers, or soon will have service added by another carrier.
The argument against the mergers is that after consolidation with few competitors (oligopoly) the competitors will create an unwritten agreement to not challenge the competing airlines pricing on their turf, so they won't challenge your pricing on your turf.
There are sufficient opportunities for LCCs (JetBlue, Alaska, Virgin America, even Southwest with a slightly lower cost structure) and ULCCs (Allegiant, Spirit, Frontier) to compete on price and/or service to help keep pricing somewhat in check by United, Delta and the new American.
Some industry-wide regulation may be needed to protect the smaller rivals from the larger ones, at any size.
Only the smallest of destinations are served by only one airline. If they could sustain service by more than one carrier they would already have multiple carriers, or soon will have service added by another carrier.
The argument against the mergers is that after consolidation with few competitors (oligopoly) the competitors will create an unwritten agreement to not challenge the competing airlines pricing on their turf, so they won't challenge your pricing on your turf.
There are sufficient opportunities for LCCs (JetBlue, Alaska, Virgin America, even Southwest with a slightly lower cost structure) and ULCCs (Allegiant, Spirit, Frontier) to compete on price and/or service to help keep pricing somewhat in check by United, Delta and the new American.
Some industry-wide regulation may be needed to protect the smaller rivals from the larger ones, at any size.
I heard a statement from a consumer analyst where post merger fares rose by an average of 40% in cities where the merged carriers had a dominant presence.
The cost of flying just bent the flying public over a barrel.
The cost of flying just bent the flying public over a barrel.
Maybe whoever worked for US Airways will learn from AA how to treat their customers huh?
Fat chance. Carriers treat most passengers as though they are merely tolerated instead of valued customers
(Duplicate Squawk Submitted)
AMR Corporation and US Airways Announce Settlement with U.S. Department of Justice and State AGs
FORT WORTH, Texas and TEMPE, Ariz, – AMR Corporation (OTCQB: AAMRQ), the parent company of American Airlines, Inc., and US Airways Group, Inc. (NYSE: LCC) today announced that the airlines have settled the litigation brought by the U.S. Department of Justice (DOJ), the States of Arizona, Florida, Michigan and Tennessee, the Commonwealths of Pennsylvania and Virginia, and the District of Columbia challenging the merger of AMR and US Airways.
http://newamericanarriving.com/news-and-updates/amr-corporation-and-us-airways-announce-settlement-with-u.s.-department-of
AMR Corporation and US Airways Announce Settlement with U.S. Department of Justice and State AGs
FORT WORTH, Texas and TEMPE, Ariz, – AMR Corporation (OTCQB: AAMRQ), the parent company of American Airlines, Inc., and US Airways Group, Inc. (NYSE: LCC) today announced that the airlines have settled the litigation brought by the U.S. Department of Justice (DOJ), the States of Arizona, Florida, Michigan and Tennessee, the Commonwealths of Pennsylvania and Virginia, and the District of Columbia challenging the merger of AMR and US Airways.
http://newamericanarriving.com/news-and-updates/amr-corporation-and-us-airways-announce-settlement-with-u.s.-department-of