13 Responses

  1. Darren
    Darren at |

    You’re really not surprised? Why now would the DOJ fret for the consumer after other large mergers (I sorta get the specific municipalities crying foul, but the U.S. government)? Is it the impact Memphis has experienced by “losing” Delta? Or perhaps that United had to “allow” Southwest to serve a handful of routes out of Newark? Meh… I don’t get it. And so what about O&D connecting markets… aren’t 80% of travelers on those routes already flying one of the majors on at least one leg (and probably at a higher overall cost than if it were one airline)?

  2. steve
    steve at |

    I’m also not surprised, just like ATT/TMobile, they are not talking about divesting spectrum then, like they are not talking about divesting routes now. This is being taken as a whole that this is bad for consumers and I don’t see a change coming to this.

    AA should have focused on a merger w/ Alaska which would have been allowed over this.

    1. Golfingboy
      Golfingboy at |

      @Darren, the competitive landscape was different when the other three mergers were proposed. AA/US is late to the game, if US/AA did theirs in 2010 and UA/CO tries to do their merger now, I am sure it will be the same thing.

      I am personally thrilled the DOJ filed the lawsuit. Airfares have gone up considerably, and whilst it is still less than the 90s, you still have to add in the ancillary revenue and the obnoxious fees. With all of those combined, dare I say, we have reached the 90s level.

      The DOJ should use the average fare and use the combined ancillary revenue [earned from standby fees, baggage fees, charging for seats, charging for certain on board services, phone charges, etc] then average it across # of passengers transported by both airlines then add that average with the airfare. Using 1995 airfare vs 2013 airfare is a skewed way to look at it and the airlines know it.

  3. Segments
    Segments at |

    What AA/US major operation is in TN?

    1. The Weekly Flyer
      The Weekly Flyer at |

      Nashville?

  4. Mwwalk
    Mwwalk at |

    Alaska doesn’t want to merge so it woul have to be hostile and AA doesn’t have near enough money for that.

  5. HansGolden
    HansGolden at |

    “When you take single connecting markets into play the numbers are somewhat crazy: 80% of passengers will be back in to one of the majors at that point.”

    Could you please restate that sentence. I don’t understand.

  6. Michael
    Michael at |

    Your forgetting the consolidation that started the take-offs, AA/TW. Ask how that went for TW emps or customers in STL?

  7. Tom
    Tom at |

    I suspect many are surprised because deep down we pretty much know that our government is in the pocket of big business like American and US Airways. It surprises us when we see evidence to the contrary. A government for the People and by the People…I mean big corporations.

  8. J
    J at |

    The antitrust division doesn’t typically file lawsuits as a negotiating tactic – the fact that this was filed indicates that a months-long process of attempted conciliation between the government(s) and the merging parties has utterly broken down. DOJ has a pretty good track record on these cases in court.

  9. Trevor
    Trevor at |

    Thanks Seth, Was wondering how Tennessee played into this… Didn’t think there was a hub (I thought WN used Nashville as hub though)..