DOJ now wants a March 2014 trial date.
08-27-2013, 12:21 PM
#1
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DOJ now wants a March 2014 trial date.
If they get the date they want this merger is doa. AA can walk away in December and most likely will. We'll know one way or another this Friday.
US Seeks to Delay Airline-Merger Trial Until March - ABC News
US Seeks to Delay Airline-Merger Trial Until March - ABC News
The U.S. government wants to wait until March for a trial on its lawsuit aimed at blocking the merger of American Airlines and US Airways.
The airlines want to start the trial in November.
The Justice Department said in a court filing Tuesday that given the stakes in the merger — it would create the world's biggest airline — it needs more time to prepare.
The government accuses the airlines of rushing the case.
The judge plans to hold a conference on the schedule Friday, but it's not certain that she will set a trial date then.
The government says the merger will reduce competition and drive up travel prices. The airlines say it would provide more competition by creating a third big airline to rival United and Delta.
The airlines want to start the trial in November.
The Justice Department said in a court filing Tuesday that given the stakes in the merger — it would create the world's biggest airline — it needs more time to prepare.
The government accuses the airlines of rushing the case.
The judge plans to hold a conference on the schedule Friday, but it's not certain that she will set a trial date then.
The government says the merger will reduce competition and drive up travel prices. The airlines say it would provide more competition by creating a third big airline to rival United and Delta.
08-27-2013, 01:29 PM
#3
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Originally Posted by CanoePilot
If they get the date they want this merger is doa. AA can walk away in December and most likely will. We'll know one way or another this Friday.
US Seeks to Delay Airline-Merger Trial Until March - ABC News
US Seeks to Delay Airline-Merger Trial Until March - ABC News
08-27-2013, 02:00 PM
#5
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Originally Posted by themotleyfool
The merger would not be dead. it however would give the doj a very big bargaining chip that dp would have to decide if he wants to compromise that much. IMHO
I honestly don't think the doj cares if a settlement is reached, they said DCA isn't even a factor in this.
08-27-2013, 02:04 PM
#6
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Supposedly the attorneys working for the airlines are some of the best in the world at litigating antitrust cases. If they are unable to convince the judge that a court date 7 months after the original filing by the DOJ is unjust and unprecedented (using the courts own data), then there really is no point in going to trial anyway.
08-27-2013, 02:29 PM
#7
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Funny how the DOJ forgets to mention that the employees of American Airlines earned nearly $523 million less during this quarter then last in addition that fuel rose 2% which amounted to nearly $700 million alone. It is just dumbfounded how these idiots in the DOJ point out a profit as a reason for this merger to not go through when they throw out the facts that these profits are made by a great reduction in OIL (which is rising again) and on the back of labor which if had not taken a cut due to Chapter 11 would have meant a $200 million LOSS!!!!!
I really hope this thing goes through for those at AA and USairways but this continued ignorance from this DOJ and this administration leaves one less then optimistic.
I really hope this thing goes through for those at AA and USairways but this continued ignorance from this DOJ and this administration leaves one less then optimistic.
08-27-2013, 03:55 PM
#8
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Originally Posted by meyers9163
I really hope this thing goes through for those at AA and USairways but this continued ignorance from this DOJ and this administration leaves one less then optimistic.
08-27-2013, 06:20 PM
#10
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Originally Posted by CanoePilot
I think it would be pretty much dead at that point. AA can't linger another 7 months in chpt 11. In December the "drop dead" clause of the us/aa merger agreement comes up. At that point AA can say it's over and walk away.
I honestly don't think the doj cares if a settlement is reached, they said DCA isn't even a factor in this.
I honestly don't think the doj cares if a settlement is reached, they said DCA isn't even a factor in this.
Unless there is a war in the middle east and oil spikes to 200 a barrel. Then AA would hide for awhile.
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