Quote:
Originally Posted by CanoePilot
The earnings that AA posted compared to Delta make me think it proves the case for the merger more.
How can the doj say AA is in good shape and able to compete against Delta when delta made almost 5 times more than AA, even after AA cut everything in Chpt 11? Delta is making the money they are because they are basically the only game in town. UA because of it shameful mismanagement and merger related issues has been unable to really put the pressure on DAL that it eventually will. This has let delta basically run without any form of real competition. If you add in a strong merged AA and a UA that has fixed its problems you will see delta with smaller margins. I don't understand why this author doesn't get basic economics. The more airlines that will compete with each the lower the prices.
Actually it doesn't.
They doj doesn't get Do-overs nothing delta is doing is unethical or illegal. It just is finally making a stable profit. If the doj has such a problem with this they would have to go after hundreds of other companies in industry that actually do have monopolies oligopolies.
and only idiots who don't understand the industry or economics question these mergers. These mergers have been better for the industry, the employees and yes even the consumer in the way of more stable companies and companies willing to spend money on their products. But these are the same people who do not think a state sponsored and state run airline like Emirates is a threat to our market driven airlines here.
Its not just airlines, there was an article in the WSJ a couple of months ago about industries that have had a lot of consolidation that are nervous about DOJ antitrust scrutiny. Only idiots that don't realize how much we are ticking off passengers and government regulators don't understand why there is so much resistance to this, and why this may just be the beginning of further DOJ scrutiny into the airlines.
One of the big reasons UAL is having problems is the CLE hub and their inability to "right size" or close it due to promises made to the state of Ohio and Rob Portman to get that merger approved. This was very similar to the promises Parker made to the state of Texas to get them to drop their part of the anti trust lawsuit.
Delta had a system wide load factor of 87% in August. That means good luck getting to Fort Lauderale within 3 days if your flight cancels. Delta is the least admired brand in the country according to Forbes. When your flight cancels, instead of running to the crew room or closing the cockpit door, go wander out into the concourse and listen to what is going on with these passengers. They aren't happy. When they aren't happy, they complain to elected officials. When they aren't happy, crap happens and they investigate. Its the nature of the business and has been for fifty years.
Whatever happens with US/AA if you think this government scrutiny is going away any time soon, you're mistaken.