Black Magic
Veteran
- Jan 4, 2008
- 938
- 552
DP just announced on the employee newsletter that they plan to fight the DOJ decision.
Airline stocks down sharply - DOJ reportedly to block AMR/LCC
- Thread starter WorldTraveler
- Start date
wings396
Veteran
- Aug 20, 2002
- 3,672
- 1,122
Sounds like someone got into their pockets early in the game. I still find it amazing that the Gov. loves to get involved in airfares, while the American consumer gets squeezed and screwed from many more vital areas that are a necessity. Last time I checked, flying wasn't a life or death issue. Too bad they can't help the public out with some more important issues such as taxes, fuel costs, and those minor little health care costs. Of course they looked the other way while every other major airline in the county merged. Can't say I'm all that shocked.
Well maybe if other airlines were free to fly any routes they wanted and charge any price they wanted...........oh wait. What a crock.
You can bet your ass that he fights it. Not only is this the final move in industry consolidation that he has been seeking for the better part of a decade, it's also his legacy.
To me what makes this extra crappy is the fact that DOJ and these state attorneys general have been working toward this announcement all the while the two companies were mistakenly believing that each day that passed without a negative signal from DOJ meant that approval was more likely as each day passed...
....the timing on this stinks and I'm going to have to place myself in trader's camp in coming up with an explanation .... corrupt and criminal overlords who punish and reward people and companies based on whatever whim or fancy they think will best serve their own interests....(I'm not putting words into trader's mouth....just saddling up on a horse in his corral)
....the timing on this stinks and I'm going to have to place myself in trader's camp in coming up with an explanation .... corrupt and criminal overlords who punish and reward people and companies based on whatever whim or fancy they think will best serve their own interests....(I'm not putting words into trader's mouth....just saddling up on a horse in his corral)
What is the eject-button for AA. Sounds like UA US merger all over again
robbedagain
Veteran
- Oct 13, 2003
- 11,125
- 2,676
accrding to an article on www.aol.com many experts were caught of guard surprised at the lawsuit. a lot of them think the doj will try to force the 2 to give a lot more than whats been noted. also dp will challenge it in court but some of those experts dont think it will get that far but we shall see
swamt i agree with you bro
swamt i agree with you bro
Real tired
Veteran
The eject button?
Everything will be on the table again. Just like we were twice.
AA will have to be "right-sized". Just like we were twice.
Real tired
Veteran
Contracts NOW?
You can most likely expect to put those off for years now. And if and when the time comes, don't expect any gains. They'll cry poor mouth all the way to the bank.
OP
WorldTraveler
Corn Field
- Dec 5, 2003
- 21,709
- 10,662
- Thread Starter
- Thread starter
- Banned
- #73
In major cases like this, the DOJ has been likely been talking with AA and US and expressing their concerns. However, the real issue is statements that AA and US execs made about expected pricing that would come from the merger - and that is what sunk the merger.
As much as it might feel like AA and US are being singled out, the DOJ quoted some very damning comments they found in all kinds of communications - both private and internal - from US and AA.
There is a very strong rule that (almost) every person in mgmt. in an airline knows and that it that you don't EVER publicly comment about future pricing actions.
When US execs made even public statements - let alone in private - about being able to raise fares as a result of the merger, they were violating the number one unwritten rule by airline execs.
It is absolutely true that the DOJ has the benefit of looking back on the effects of previous mergers but they also were very clear that there were many, many comments that were made about future pricing as a result of the merger - and those comments are the basis of coming to a conclusion that the merger would be anticompetitive.
A whole lot of people are trying to figure out where to go now but I doubt if the DOJ's decision was as big of a surprise as many think and that AA and US mgmt. - and AMR's creditors had received indications things were in danger.
Best of luck to all in a now very uncertain situation.
DOJ might approve last Legacy Carrier Merger LCC/AMR once Industry is Re-regulated . Airline Workers, Cities, and Consumers have been HURT by consolidation. WS and CEOS have been the BIG WiNNERS $ until today. LCC/US Airways is the Poster Child for what went wrong. AMR was the last Legacy Casualty.
Similar threads
