Oh come on already, can you imagine all the rhetoric we would be reading from you if this was the DL/NW merger that the DOJ was attempting to block. Are you willing to
"Admit" that?. I'm willing to bet the "you let the others do it, and we need a level playing field" cards would be tossed all over the place if this involved DL.
Perhaps that is why DL moved quickly to be the first carrier to pull off a merger with NW... precisely because they knew there would be issues related to size at some point.
And again, you continue to think that all things were equal even between AA/US and the other three... and they are not.
Just to recap... no other airline that we know of sent emails and made speeches saying that the merger would allow them to reduce capacity which we would be good for the merged company and the industry. BTW, if you recall, Parker said the same thing about the DL-US merger attempt which is why gov't authorities shot it down so quickly. The whole DL employee thing was great for DL's internal PR but Parker hung himself with what he said about his plans with the DL merger - and then he repeated the same thing with AA/US.
No other airline sent emails or had internal communications saying that the Advantage Fares or similar consumer friendly programs would have to go as part of the merger.
No other airline pair would be as concentrated in one region of the country as AA/US will be on the east coast based on size. NW and UA were much smaller on the east coast than DL and CO.
And the only other case that resulted in an airport where the combined carrier would have more than 50% of the slots at a slot-controlled airport was at EWR with UA/CO - and UA had to divest all of its own pre-merger slots.
DL still does not have over 50% of the slots at any slot-controlled airport.
There are facts involved and dealing with those facts instead of "they are treating us differently" is what is necessary to solve the case.
I must state the obvious......isn't some company in every industry the largest? Maybe we should have the government size every company in every industry to exactly the same size with no advantage given to any company. I'm sure the government would do a great job with that!! Just look at how well they manage their own business. Understand I'm no fan of mergers because most just make a few rich folks richer and the employees end up footing the bill in many cases.
All the best,
Bob
The gov't is NOT trying to make or prevent every company the same in the US airline industry and they haven't done that in other industries.
They are enforcing antitrust laws which require that mergers not result in combinations that would hurt consumers. They have spelled out why they are taking action against AA/US and it is not merely about size.
Of course, let's remember that AA/US touted early on that they would be #1 after the merger even though many of us were saying that there would have to be divestitures in order to pay for the merger and because the combined carrier's higher costs would render a lot of current US routes as no longer economically viable. AA/US is saying they want to reduce capacity which is precisely what is problematic.
And, once again, antitrust law does not require the DOJ to do for one competitor what it has done for others and DOES allow them to stop the merger process because competition is being harmed.
Look at the grocery and cellular business just for starters and see that there have indeed been mergers that have been blocked or altered even after other companies have been allowed to merge.
As for the notion about Wal-Mart growing and knocking off small businesses as noted by someone, the DOJ doesn't get involved in internal growth strategies for companies unless those companies are using illegal tactics. I don't like seeing small stores being lost across America but Wal-Mart is not acting illegally by undercutting their small business competition.
Remember, US has been undercutting other network carriers for years....
