DOJ wins NEA lawsuit
#31
Gets Weekends Off
Joined: Aug 2007
Posts: 2,088
Likes: 12
They just got out of the NEA for free. Zero penalties have to be paid to AA now. The NEA was a necessity of Covid but it no longer serves JB well. It super concentrated our network into already stressed airports and destroyed our route structure.
I think it also only enhances our argument for the merger.
I think it also only enhances our argument for the merger.
#32
Gets Weekends Off
Joined: Feb 2016
Posts: 108
Likes: 0
I don’t see it that way, but it’s hard to predict the future. I think the DOJ will be emboldened by this recent decision and will put on a full court press trying to prove to the judge that B6/NK is harmful to consumers, just like they were able to show with the NEA. No NEA or merger….where does that leave JetBlue is the million dollar question.
B6+NK is a conventional full-on merger. There is a large corpus of administrative/statutory/case law history governing the pathway to approval. The DOJ can’t just block it on a whim, they have to support their claim that it will hurt competition, which I expect will be an uphill battle given that B6 + NK combined will still be way smaller than any of the big 4. We also have plenty of data showing that B6 has a larger impact on price vs. NK, because we compete directly w/the legacies on price and product, over the same finite pool of consumers
I’m confident at the end of the day, the politicians will posture, we’ll divest a few gates and slots here and there, and we’ll get through it.
#33
Line Holder
Joined: Jul 2008
Posts: 529
Likes: 0
The NEA was a completely different animal than B6 + NK. It was essentially geographically-defined virtual merger between an LCC and a legacy. There wasn’t much case law to support two companies being able to coordinate operations like that wo going through the established antitrust/M&A process.
B6+NK is a conventional full-on merger. There is a large corpus of administrative/statutory/case law history governing the pathway to approval. The DOJ can’t just block it on a whim, they have to support their claim that it will hurt competition, which I expect will be an uphill battle given that B6 + NK combined will still be way smaller than any of the big 4. We also have plenty of data showing that B6 has a larger impact on price vs. NK, because we compete directly w/the legacies on price and product, over the same finite pool of consumers
I’m confident at the end of the day, the politicians will posture, we’ll divest a few gates and slots here and there, and we’ll get through it.
B6+NK is a conventional full-on merger. There is a large corpus of administrative/statutory/case law history governing the pathway to approval. The DOJ can’t just block it on a whim, they have to support their claim that it will hurt competition, which I expect will be an uphill battle given that B6 + NK combined will still be way smaller than any of the big 4. We also have plenty of data showing that B6 has a larger impact on price vs. NK, because we compete directly w/the legacies on price and product, over the same finite pool of consumers
I’m confident at the end of the day, the politicians will posture, we’ll divest a few gates and slots here and there, and we’ll get through it.
#34
That/It/Thang
Joined: Aug 2020
Posts: 3,502
Likes: 370
Exactly, there is zero precedent in the NEA and the judge was left with only deciding based on anti-trust law and in this specific case he ruled pretty much the only way he could with what was before him. The merger has a ton of precedent that the court will need to balance as well as anti-trust laws.
Merger-Reagan appointed judge.
Sometimes I think it’s that simple. Ol boy just needs to keep above ground until November.
#36
Gets Weekends Off
Joined: Mar 2020
Posts: 254
Likes: 0
From: Airbus 320 Left
#37
And since profit sharing didn’t even make the top 5 in the ALPA survey last year, the pilot group doesn’t really care either.
as another said, this was a “merger without a merger”. JB was never going to win this lawsuit.
as another said, this was a “merger without a merger”. JB was never going to win this lawsuit.
#38
Line Holder
Joined: Oct 2015
Posts: 472
Likes: 1
There’s a reason profit sharing didn’t make it in the top 5. It’s because it wasn’t educated by the NC/MEC properly (by design). I suspect PS will be fought for a little harder, educated a bit better in things like contract comparison guides and negotiation info that is put out, especially since it seems to be an industry standard thing now.
#39
The REAL Bluedriver
Joined: Sep 2011
Posts: 6,935
Likes: 0
From: Airbus Capt
There’s a reason profit sharing didn’t make it in the top 5. It’s because it wasn’t educated by the NC/MEC properly (by design). I suspect PS will be fought for a little harder, educated a bit better in things like contract comparison guides and negotiation info that is put out, especially since it seems to be an industry standard thing now.
#40
On Reserve
Joined: May 2018
Posts: 12
Likes: 0
I want more days at home, better health care for my family, and a reworked reserve grid/ drop-swap system (so I can spend more of my life not at work).
I'm not saying these should be your priorities; but plenty of people have different priorities than profit sharing.
JB has pretty solid work rules by and large, and I hope we continue to improve them. Particularly around pairing construction and fatigue there are a lot of improvements to be made, but more money spent on us won't fix that. Perhaps more money spent on soft time would.
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