http://www.usatoday.com/travel/fligh...-mergers_N.htm

Already, congress and some very powerful congressman are speaking out against major airline mergers. It looks like Delta would have a very steep hill to climb in Washington.

 

I concur..I agree

 

The next election could have a MAJOR impact on the feasability of future mergers...the executive branch can throw a lot of obstacles in the way of a merger (or remove them).

If I ran an airline and wanted to merge, I would be trying REAL hard to get it done in 2008. Or at least get so far along that it couldn't be reversed.

 

A hill that is undoubtedly easier climbed when pre-greased with large deposits made into the previously mentioned congressman's re-election account. Knowing what most of our airline executive's bank accounts look like, I bet they could change an opinion or two.

 

We already have a Democratic congress, with Democrat's running the major committees related to aviation. They can really slow down any merger deal by insisting on hearings and then getting them scheduled...eventually. So, the while a Democratic Administration might help prevent mergers, I'm not so sure that's all that necessary.

This gives our politicians a chance to support the "little" guy, the consumer and the airline employee, which they like to do. They did this in the failed USAir bid for Delta by suggesting strongly to USAir that if it could afford $12 billion for Delta, USAir could afford to take it's employee pensions back. Interestingly, that deal died shortly after.

 

Hopefully the last past few years of executives looting their airlines and screwing their employees is coming to an end when the republicans get their butts tossed out of power. Got to admit, though, under the Bush and his cronies, the airline corporate elite have gotten a bonanza to their personal bank accounts.

 

Let's not forget the oil companies/executives too...............

 

Oh yah, under the Clinton Administration the Executives were in the soup line.....give us all a break.
If it is so bad the past few years why haven't your liberal friends in Congress done anything? I thought they wrote legistlation and had the power to override anything the "evil" Bush vetoed.

 

Need 2/3 vote to override a veto. Pretty difficult in most cases.

 

If this truly is the case, then why didn't Congress intervene with the TWA/AMR merger after watching the adverse effect on the TWA employees, the STL Lambert Airport, and the economies of STL/MCI.

Sen. Bond and Sen. Talent of Missouri faced constant resistence from Sen Kay B. Hutchinson of Texas (Dallas, TX) in trying to perserve jobs in Missouri for Missouri residents (TWA employees).

My point is the passenger airline industry is fragile and mergers may be the only way for them to continue as competitive entities in both the LCC arena and the International market whereas governments help support their national airline. Sadly, if deregulation is so wonderful why do we have to ask Congress to step in to seperate the catfights that occur during mergers. Secondly, we have seen in the TWA/AMR, Senators going to bat for the people they represent and then others leading the charge for political or financial reasons to prevent this form of equality within mergers.

Your viewpoint may vary,

FF