Airline Pilot Central Forums - DOJ to block AA/USAir merger

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- - DOJ to block AA/USAir merger (https://www.airlinepilotforums.com/american/76509-doj-block-aa-usair-merger.html)

Wait, what's good for "business" can be bad for consumers? I thought profits justified all actions? Ha! It's strange to me that someone would want consolidation but simultaneously despise big government - as if a big company is any better than a big government. ... oh oh sorry, yes, big companies are so efficiently run, I forgot. ... so efficiently run into bankruptcy and bonuses while screwing employees all the way

Quote:

Originally Posted by CanoePilot (Post 1461938)

I'm happy some of you are still holding out hope. But the doj is pretty much in charge of these situations. There has never been a case where their opinion has been overruled. I wonder if there is a growth plan for us airways after this? American can survive and will do well but us airways needs this merger more than anyone to be able to compete. Without this merger we're just an lcc.

USAir just finished its most profitable 2nd quarter in history. :rolleyes:

Enough with the drama about survival.

Quote:

Originally Posted by PurpleTurtle (Post 1462071)

USAir just finished its most profitable 2nd quarter in history. :rolleyes:

Enough with the drama about survival.

Doesn't mean anything. What about in 5 years when spirit, virgin and jetblue are twice their sizes. Think usair will still be competitive then?

Quote:

Originally Posted by CanoePilot (Post 1461938)

Incorrect. Most cases have ended because the merger parties withdrew and it never went to court. I provided a prime example earlier. (Hostile takeover, but still subject to anti-trust law)

Oracle Prevails in DoJ Suit to Block PeopleSoft - InternetNews.

"we have reasons for doing things the way that we do them. We say 'half an hour' to control the herds of walking mozzarella sticks who think that three hundred dollars and a photo ID gives them the right to fly through the air like one of the guardian owls of legend!"

Bob Crandall's thoughts. 2 big airlines or 3, which is better for competition?

Former American Airlines Chairman on Merger Lawsuit | Fox Business Video

Quote:

Originally Posted by bikingflyer (Post 1462053)

American-US Airways deal may still be approved, lawyer says - Capitol Report - MarketWatch

Someone has hope...!

He has hope because, no matter the outcome, the only real winners will be the lawyers.

Quote:

Originally Posted by CanoePilot (Post 1462074)

Doesn't mean anything. What about in 5 years when spirit, virgin and jetblue are twice their sizes. Think usair will still be competitive then?

Well, they'll be paid more than us as we live perpetually under LOA93 so we'll have the cost advantage. :rolleyes:

Quote:

Originally Posted by ackattacker (Post 1462033)

The merger is done. Cooked. Caput.

The DOJ doesn't "posture". They're not in it to negotiate, they have no stake in the outcome. Their stated objections are deep and systemic, and leave no wiggle room for concessions. And now it's all politics. Backing down makes them look wishy washy, the worst possible thing for a politician. They will fight tooth and nail to block the merger at all costs now that they have made their decision, come hell or high water, they will never change their decision even if both companies offer the moon and the stars.

Sorry guys.

EDIT: I should also add, that the lawsuits will drag on. American cannot legally linger in bankruptcy, they've already lingered too long, now they will have to exit as a stand-alone. Getting this thing done in bankruptcy was a cornerstone of Parker's plan and now that is over.

I agree, I also think american will do a-ok as a stand-alone. They have orders and a route structure to support some organic growth.

Now on the other hand us airways can't do much more with what they have. What Parker gonna do now?

Quote:

Originally Posted by The Drizzle (Post 1462082)

Well, they'll be paid more than us as we live perpetually under LOA93 so we'll have the cost advantage. :rolleyes:

OH god, that's probably the worst. That and the east west fight will drag on another 5 years.

Quote:

Originally Posted by CanoePilot (Post 1462085)

What Parker gonna do now?

Become United's CEO in a few years? Retire and play golf? Tough road ahead for Parker :rolleyes: