AAG announces changes at DCA and LGA

[eolesen]

I don't think B6 was blocked - I think they're just keeping their powder dry for another day.

The longer the process is blocked by DL or others, the longer AA keeps the assets, including the DAL gates.

WT has questioned the legality of the DOT standing in the way of DL many times, but I'm not sure he's actually read S.2493 to understand what powers the government retained.

Specifically, they still have the right to step in -- "...Stipulates that air transportation services applied for by a carrier shall be deemed to be consistent with the public convenience and necessity unless the Board finds otherwise based upon a preponderance of the evidence."

The remaining powers of the CAB were transferred over to the DOT, so if the DOT has "a preponderance of evidence" arguing against letting the bigger carrier(s) get bigger, they can deny access. And that's what they've done.

 

[robbedagain]

On www.justplanenews.com theres an article that says AA to go to 3 flights btwn LGA and GSO. Starts april 2014. Im sure itll be rjs but in wt mind its 3 too many flights at lga for his almighty delta

 

[WorldTraveler]

I suppose they did a hell of job not opposing the DL/NW and UA/CO mergers....

Since DL/NW didn't have more than 25% of the slots at any of the slot controlled airports, there was no basis for divestitures.

AA/US are forcing divestitures because there merger results in more concentration in key markets than any other.

UA did divest 18 pairs of slots at EWR, remember?

We've been thru this before.  
 

I don't think B6 was blocked - I think they're just keeping their powder dry for another day.

The longer the process is blocked by DL or others, the longer AA keeps the assets, including the DAL gates.

WT has questioned the legality of the DOT standing in the way of DL many times, but I'm not sure he's actually read S.2493 to understand what powers the government retained.

Specifically, they still have the right to step in -- "...Stipulates that air transportation services applied for by a carrier shall be deemed to be consistent with the public convenience and necessity unless the Board finds otherwise based upon a preponderance of the evidence."

The remaining powers of the CAB were transferred over to the DOT, so if the DOT has "a preponderance of evidence" arguing against letting the bigger carrier(s) get bigger, they can deny access. And that's what they've done.

did you have your Jack Daniels before or after you came up with that interpretation, counselor?

there is nothing in any statute of the US government that permits them to choose what carriers can and cannot serve the public good based on prices which a carrier can charge.

Telling low fare carriers they can bid but a legacy carrier cannot is economic discrimination and there is no legal basis for doing that.  
 

On www.justplanenews.com theres an article that says AA to go to 3 flights btwn LGA and GSO. Starts april 2014. Im sure itll be rjs but in wt mind its 3 too many flights at lga for his almighty delta

AA is adding service into a bunch of small secondary airports. Ironic that Parker gave up the slots that supported those flights several years ago but wants to come back and give them another whirl while passing on serving the largest markets.

Parker has undoubtedly realized that his market share has shrunk in a number of these cities since the slot deal and wants to try to rescue them. Might be a tad too late, esp. since DL is sending in more and more mainline jets to those cities.

 

[FWAAA]

AA is adding service into a bunch of small secondary airports. Ironic that Parker gave up the slots that supported those flights several years ago but wants to come back and give them another whirl while passing on serving the largest markets.

Parker has undoubtedly realized that his market share has shrunk in a number of these cities since the slot deal and wants to try to rescue them. Might be a tad too late, esp. since DL is sending in more and more mainline jets to those cities.

With this I agree.   Wasn't part of the rationale for the slot giveaway, err, Slot Swap with DL that US couldn't make money with its flights to small towns from LGA and thus handing the slots to DL wouldn't harm US that much?    

And now that Parker and Kirby find themselves with a bunch of LGA slots again (thanks to AA's larger number of slots than the US portfolio), they re-start service to a bunch of small towns that DL now serves from LGA?   WTH?    
 
No Atlanta, no Houston, no Cleveland.   Instead, some nowheresvilles.     

 

[Kev3188]

did you have your Jack Daniels before or after you came up with that interpretation, counselor?

Are you claiming E is an alcoholic, or that he just posts while drunk?

Tread lightly...

 

[FWAAA]

I don't think B6 was blocked - I think they're just keeping their powder dry for another day.

That sounds reasonable, seeing how B6 paid $40 million for the eight DCA pairs in 2011 plus another $32 million for eight LGA pairs in 2011.   Westjet paid just $17.6 million for the other eight LGA pairs.      
 
http://www.dot.gov/briefing-room/jetblue-westjet-gain-slots-laguardia-reagan-national-airports
 
For the DCA slots that B6 was leasing from AA, I assume that it keeps those slots and in exchange, AA keeps the 9-10 JFK slot pairs, so perhaps no money need change hands.   

 

[700UW]

there is nothing in any statute of the US government that permits them to choose what carriers can and cannot serve the public good based on prices which a carrier can charge.

Telling low fare carriers they can bid but a legacy carrier cannot is economic discrimination and there is no legal basis for doing that.  
 

 

For the third time, show us a law on the books that prevents the DOJ and/or the DOT from doing exactly what they are required to do, they have done it in many mergers.

 

[FrugalFlyerv2.0]

For the third time, show us a law on the books that prevents the DOJ and/or the DOT from doing exactly what they are required to do, they have done it in many mergers.

 
you don't understand
what the doj is doing here could be detrimental to DL
therefore it must be unconstitutional

 

[700UW]

 
you don't understand
what the doj is doing here could be detrimental to DL
therefore it must be unconstitutional

LOL

 

[WorldTraveler]

you don't understand
what the doj is doing here could be detrimental to DL
therefore it must be unconstitutional

The basis of civil law is built on actions being defined in order for a party to act, not the other way around.

Airline deregulation on 1978 removed the federal governments ability to interfere in the free market's ability to set fares. We've said that dozens of times but you can't seem to get it.

 

[700UW]

They are not setting fares.
 
They are charged with ensuring fair competition.
 
Like I said, show us the law of the land that prevents the DOJ and DOT from doing exactly what their responsibilities are?

 

[WorldTraveler]

Let me reiterate one more time.

No one is arguing about the ability of the DOJ to require divestitures.

The issue is and will continue to be that the DOJ is selecting carriers to receive those divested assets based on their intent to promote a certain level of pricing. They specifically said in the divestiture order that they believed that legacy airlines collude in setting fares and not competing but they provided no proof.

You can try to make your point all day long but the case won't be decided by you or by me. I'm here to tell you that the issues DL raised on the first day the DOJ's order for the approval of the AA/US merger are still issues.

If you don't want to accept it, then you might find yourself surprised in the future.

 

[700UW]

Like I said, the DOJ is not setting fares.
 
And for the 6th time show us the law of the land where it says the DOJ cant restrict whom the slots go to.
 
You are the one who is claiming they cant do it, so back it up with facts.
 
Once again, the DOJ is not setting fares or pricing, why are you lying and posting misinformation?

 

[WorldTraveler]

picking carriers based on their perceived ability to set the kinds of fares the DOJ wants is setting fares whether you get it or not.

I made it clear how I believe the slot and airport divestitures would take place long before the DOJ ruled. And I haven't changed my position.

 

[700UW]

Once again show the board what law the DOJ is in violation of, you claim they are setting fares and pricing, which they are not.
 
That is a blatant misinformation.
 
Dont be mad that delta is now the third largest airline in the US.