Airline Pilot Central Forums - Broad Divestitures Wanted from DOJ

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LCC stock up over 4% so far today. I guess the WSJ article didn't spook too many.

Quote:

Originally Posted by R57 relay (Post 1513016)

LCC stock up over 4% so far today. I guess the WSJ article didn't spook too many.

Now up 6% and AAMRQ is up 15%, somebody knows something.

The real reason is that I sold my last options at around $16. :-)

Quote:

Originally Posted by adam28 (Post 1513020)

Now up 6% and AAMRQ is up 15%, somebody knows something.

I dont know if anyone on wallstreet has an inside scoop but the news is good and I'm sure wallstreet knows this.

Eric Holder himself is speaking now, may be that's why!!

U.S. Justice Dept hopes to settle American, US Airways fight - Yahoo Finance

Quote:

Originally Posted by nwa757 (Post 1512662)

Tried that and all links and sites end up leading back to the WSJ paid for site. Thats why I was asking for someone to copy and paste the whole article.

For future reference, if you google the article title as instructed, then click on the online.wsj.com link that should come up first, you can read the full article for free directly from the wsj site.

U.S. Justice Dept hopes to settle American, US Airways fight - Yahoo Finance

Quote:

WASHINGTON, Nov 4 (Reuters) - The U.S. Justice Department is looking for divestitures at key airports throughout the United States as a condition for dropping a lawsuit aimed at stopping the proposed merger of US Airways and American Airlines , U.S. Attorney General Eric Holder said on Monday.

Holder said that talks with the companies, whose merger would create the world's largest airline, were ongoing and that he hoped for an agreement before a trial begins on Nov. 25.

"We are fully prepared to take this case to trial" if settlement is not reached, Holder said.

The Justice Department's complaint filed against the deal discussed the combined airline's potential clout at Washington's Ronald Reagan National Airport as well as concerns about a large number of other city pairings.

My take:

DOJ wants to settle but LCC/AMR is going to have to "give something" before they settle. DOJ is saying "we are ready for trial" as standard lingo, to look like the tough regulator.

The smart response is give up some gates, throw DOJ a few bones, and everybody is happy. No trial, merger approved.

Cooperate, Graduate

Quote:

Originally Posted by nwa757 (Post 1512662)

Tried that and all links and sites end up leading back to the WSJ paid for site. Thats why I was asking for someone to copy and paste the whole article.

Understand, I just didn't think that was legal. Maybe I'm mistaken as it happens a lot.