Airtran's merger plan...
#11
Yeah, the DOJ is really going to care if they force the combined airline to take in 15% or so less revenue.
IF a merger occurs, the DOJ will force a reduction by the carriers in certain markets. In other markets that already overlap, the merged company will naturally attrit the flying, opening the door for other airlines to provide service.
IF a merger occurs, the DOJ will force a reduction by the carriers in certain markets. In other markets that already overlap, the merged company will naturally attrit the flying, opening the door for other airlines to provide service.
#12
Never said DOJ will care. DOJ will "force?" reduction? What makes you the DOJ expert? Didn't you just get hired by AirTran? Try concentrating on your newhire studies instead of making broad statements without any legal basis. I know a female lawyer who works for a major airline and she said there is no such thing as mandatory reduction of flying in mergers.
#13
Your "female lawyer" friend doesn't know much, then. A reduction in slots/gates at major airports is pretty much a certainty with the merger of such large airlines. The DOJ is responsible for ensuring that the merger doesn't harm competition and the consumer. If the airlines refuse to give up slots, then it's unlikely that the DOJ would approve the merger.
Reason NWA and DAL are even thinking about merging is because there are very few if any overlaps in their domestic or international routes. The top management at respective airlines are probably a little smarter than you. Merger would be voted down by their board members if they had to give up any routes of value. Any relinquishment is already in the works to be delegated to their respective regionals. Not saying this is a good thing, but it is the reality.
#14
If the new Delta does relinquish these gates/slots, is it safe to assume they will require fewer airplanes (fewer pilots) than they already have? Is there enough planned growth (aircraft on order vs. aircraft retired and or no longer needed) at the new Delta to absorb the anticipated loss?
Count on it.
#16
#17
Gets Weekends Off
Joined APC: Apr 2006
Posts: 112
Unless any of them are actuallly sitting in with NWA/DAL negotiations and talking to the DOJ this thread is useless speculation.
#18
Reduction will be primarily in the aging mainline jets. 50 seat RJs are definitely on their way out but so are the aging DC9s. 50 seat RJs are being replaced with 76 seat RJs. DC9s probably will not be replaced. I don't like this trend but it is what it is.
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