Gregg Abott joins DOJ to block AA/US merger (Dallas: 2013, prices)

[Exult.Q36]

Let me get this right. Gregg Abbott a candidate for Texas Gov has joined Eric Holder in the DOJ to block the merger of U.S. Airways and American Airlines. Huh? If American and U.S merge it would result in American being the largest Airlines in the world again. This is political suicide for Mr. Abbott IMO considering how anti-government he proclaims to be.

[Trae713]

Originally Posted by kdogg817

Let me get this right. Gregg Abbott a candidate for Texas Gov has joined Eric Holder in the DOJ to block the merger of U.S. Airways and American Airlines. Huh? If American and U.S merge it would result in American being the largest Airlines in the world again. This is political suicide for Mr. Abbott IMO considering how anti-government he proclaims to be.

Or it could earn him some points from people not in his base. There are too few airlines and combining AA/US would mean higher prices for everyone. I like this. Kudos to the republican.

Now where is LAnative?

[JimBaker488]

A top concern is local markets, the Justice Department said. It cited the example of Ronald Reagan Washington National Airport, where the combined airline would control 69% of takeoff and landing slots, and 63% of the outbound nonstop routes.

US government seeks to block American-US Airways merger - CNN.com
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There's one of the really big "rubs" on this deal: the pols in DC don't want their service cut and airfares elevated. Now NP if it happens to the rest of the country, but not to them.
And from what I hear, lots of folks in North Texas would have preferred American coming out of Chapter 11
as a stand-alone carrier anyway ?

[Exult.Q36]

Originally Posted by JimBaker488

US government seeks to block American-US Airways merger - CNN.com
*********************************
There's one of the really big "rubs" on this deal: the pols in DC don't want their service cut and airfares elevated. Now NP if it happens to the rest of the country, but not to them.
And from what I hear, lots of folks in North Texas would have preferred American coming out of Chapter 11
as a stand-alone carrier anyway ?

I think the idea that U.S. airways executives will be running the show has a lot to do with why Abbott got involved.

[Trainwreck20]

^^ That.

[binkyman]

Originally Posted by Trae713

Or it could earn him some points from people not in his base. There are too few airlines and combining AA/US would mean higher prices for everyone. I like this. Kudos to the republican.

Now where is LAnative?

Indeed, allowing American Airlines to go out of business would be the best thing economically for the Dallas - Fort Worth area. The airport is actually hindered by the behemoth. Though there would be a short time of trauma, chopping these monsters into bits piecemeal would be in the best interest of all.

[JimBaker488]

Originally Posted by kdogg817

I think the idea that U.S. airways executives will be running the show has a lot to do with why Abbott got involved.

And maybe also something to do with Abbott running for Gov ?

[bluescreen73]

Originally Posted by kdogg817

I think the idea that U.S. airways executives will be running the show has a lot to do with why Abbott got involved.

Yeah put AMR idiots...erm execs in charge so they can take down two airlines instead of one.

[binkyman]

Originally Posted by kdogg817

I think the idea that U.S. airways executives will be running the show has a lot to do with why Abbott got involved.

Having the U.S. Airways executives run the show isn't going to keep the majority of the new airlines from being based at DFW and in the Dallas - Fort Worth area. Nature abhors a vacuum.

[JimBaker488]

Analysts on CNBC are reporting that DOJ is for real on blocking this deal, and with no plan B available to the 2 carriers to resurrect it.
Seems the DOJ guys have been reviewing what's going on now after the earlier mergers that have already been approved & completed (Delta-NW & United-Continental), and generally speaking everybodys service is really sucks, while there's fewer flights, and higher fares. Guess the Fed guys finally figured out that mergers, while good for business, often are just the opposite for consumers. Duh !