DOJ to block AA/USAir merger
10-17-2013, 08:04 AM
#561
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Originally Posted by erjpilot
How are AMR and LCC supposed to prove in court that they need a merger when they are both making record profits? It seems like after each record breaking quarterly earnings the merger chances diminish a little more...
Doj can only say it's anti-competitive, THAT IS ALL. The courts job isn't to decide if this makes financial sense or not, that is up to the airlines and wall street and they have decided it does. The courts job is to decide if this merger is anti-competitive and it's up to the doj to prove that it is.
The profit of us and aa have absolutely no baring on if this is anti-competitive or not.
10-17-2013, 08:05 AM
#562
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Originally Posted by erjpilot
How are AMR and LCC supposed to prove in court that they need a merger when they are both making record profits? It seems like after each record breaking quarterly earnings the merger chances diminish a little more...
LCC is making money but that is a fraction of what DAL makes.
WD at AWA
10-17-2013, 08:10 AM
#563
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by the way, the "proving in court" is the burden of DOJ, not AA. AA is the "accused" here, and DOJ is the "prosecutor". All AA has to "prove" per se is that DOJ's case does not demonstrate antitrust violations. Obviously both sides will present their case, but the burden is on DOJ to prove anything.
10-17-2013, 09:15 AM
#564
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Originally Posted by CanoePilot
Because it's not about having to prove they NEED this merger.
Doj can only say it's anti-competitive, THAT IS ALL. The courts job isn't to decide if this makes financial sense or not, that is up to the airlines and wall street and they have decided it does. The courts job is to decide if this merger is anti-competitive and it's up to the doj to prove that it is.
The profit of us and aa have absolutely no baring on if this is anti-competitive or not.
Doj can only say it's anti-competitive, THAT IS ALL. The courts job isn't to decide if this makes financial sense or not, that is up to the airlines and wall street and they have decided it does. The courts job is to decide if this merger is anti-competitive and it's up to the doj to prove that it is.
The profit of us and aa have absolutely no baring on if this is anti-competitive or not.
American Airlines' record profit could hurt merger plans - Oct. 17, 2013
http://mobile.businessweek.com/artic...mpaign_id=yhoo
Last edited by erjpilot; 10-17-2013 at 09:42 AM.
10-17-2013, 09:32 AM
#565
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Originally Posted by erjpilot
Thanks for the explanation, makes sense. However, take a look at this, there's obviously a correlation between profits and competitiveness:
American Airlines' record profit could hurt merger plans - Oct. 17, 2013
American Airlines' record profit could hurt merger plans - Oct. 17, 2013
10-17-2013, 10:07 AM
#566
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The airlines shouldn't be worried about losing this because of how much money AA and US are making they should be worried that they lost the request to get the douments.
This basically removes the arguments of "you let dal/ual/wn merge and not us". This case will be strictly on the competitiveness of the merger.
After what Horton said about settlement yesterday, I think that probably won't happen either. I strongly think this goes to court.
This basically removes the arguments of "you let dal/ual/wn merge and not us". This case will be strictly on the competitiveness of the merger.
After what Horton said about settlement yesterday, I think that probably won't happen either. I strongly think this goes to court.
Relax. Everything gonna be ok.
10-17-2013, 12:45 PM
#568
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Originally Posted by satpak77
DOJ won't appeal it if DOJ looses. Appeals can't be based on "didn't get my way" they are based on (alleged) errors in trial process or arguments that allowable evidence was left out, etc type stuff.
Best to hope for is that judge approves the deal and let's it continue while the appeal plays out.
10-17-2013, 12:49 PM
#569
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Originally Posted by satpak77
anything can be appealed but the next higher court can refuse to hear it, thus stopping it dead then and there. With that said, it is unlikely DOJ will appeal to Supreme Court if case does not go in their favor. "Witch hunt" etc "axe to grind" etc "government out to snuff out business" by DOJ will come into discussion plus budgetary considerations to "continue to keep the case alive" will come into play.
My opinion, is DOJ will not appeal it to the next level. In addition, my opinion is AA/LCC will prevail in this.
My opinion, is DOJ will not appeal it to the next level. In addition, my opinion is AA/LCC will prevail in this.
10-17-2013, 12:58 PM
#570
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Originally Posted by kingairip
The Supreme Court is not the next level. Not sure if that's what you were saying but it's worth clarifying. The next level is an Appeals Court. Appeals in civil trials are almost routine unless a party runs out of money (and the government never runs out of our money!)
I look forward to a merged AA/LCC
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