View Single Post
Old 01-06-2016 | 06:07 PM
  #47  
Flyby1206's Avatar
Flyby1206
SDQ Base Chief
20 Years
On Reserve
 
Joined: Mar 2006
Posts: 6,018
Likes: 26
From: 320 CA
Default

Originally Posted by Lobaeux
Don't think this is correct. The DOJ can conduct an antitrust review to determine whether any merger results in an anticompetitive situation. The DOT only assists in this determination.

Any future merger will come under intense scrutiny, just my guess but the DOJ will probably try to draw a line in the sand. This of course is dependent on which party holds onto the Executive Branch.
You have it flipped. DOJ doesn't make the final decision, DOT does. The DOJ typically raises hell on every merger, but DOT lets it go forward with minor restrictions (see below)

Originally Posted by FirstClass
I'm not sure that is accurate. Sometimes as a stipulation to approving a merger the DOJ will require slots be given up or something along those lines.
Yes, reread what you quoted:

Originally Posted by Flyby1206
The DOJ/DOT only has authority when slot restricted limited entry airports are involved. Look at SWA/AirTran and BWI. Not a peep about that because anyone can walk into BWI and start service tomorrow. The cat is already out of the bag in terms of eliminating competition, and now the LCCs and ULCCs will take part.
The DOT/DOJ only gets involved when limited entry slot airports are involved. Spirit and Frontier don't have much in the way of slots so there won't be any deal breaker concessions from the DOT/DOJ. The DOJ will definitely cry about less competition and reduced options for traveling public, but the DOT will allow the merger.
Reply