The DOJ challenge to AA/US Air was somewhat surprising. My best guess is that the government wants them to divest some of their hold on DC. But, some writers are theorizing that this is a new push by the government to increase competition among air carriers to lower fares. Part of this push includes allowances for foreign carriers to operate US domestic service. Reporters close to the DOJ released a number of articles in favor of cabotage, which is not their usual cup of tea ... this suggests that staffers are talking up the prospect.

Of course, the DOJ's filing suggests it really does not grasp network traffic flows. It names, and I am not kidding, service between places like Kapaa, HI to Tuscon, AZ. I can't imagine that's a market that will see Emirates A380 shower service any time soon. However, after a momentary giggle at the inept filing of a mostly asleep at the wheel for a decade and a half DOJ, there's a gasp at the fact a powerful Agency is ill informed.

My question; now that the DOJ approved our spend on Virgin Atlantic, is the DOT going to hold up the immunized joint venture, well, because? British and American have about 60% of the US - UK market. It would make sense that our 25% would not be seen as anti competitive, BUT, the DOT "consults" with the DOJ before offering their approval. I would not take anything for granted right now.

Last I heard, Delta Air Lines tabled D-ALPA's opener on the VA JV. We had requested a global production balance (don't know any deets).

Slowplay is good on this stuff. He does not engage in a lot of speculation, but it would be interesting to read his thoughts.

George ... you're our resident expert. What do you think?