Citing shutdown, DoJ requests stay in fight over U.S. Air, AMR deal

[cltrat]

FORT WORTH, Texas and TEMPE, Ariz., Oct. 1, 2013 /PRNewswire/ -- Texas Attorney General Greg Abbott, AMR Corporation (AAMRQ), the parent company of American Airlines, Inc., and US Airways Group, Inc. (LCC) today announced they have reached an agreement for the Texas Attorney General to support the proposed merger of American and US Airways.

Under the terms of the agreement, the new American Airlines will maintain scheduled daily service to more than twenty airports in Texas. In addition, the agreement provides that Dallas/Fort Worth International Airport be maintained as a large hub airport for the combined airline and that the new American will maintain its headquarters in the Dallas/Fort Worth area.

http://finance.yahoo...-190700943.html


Seems now the Texas AG agrees with what the new American had promised all along!

the cynical part of me wants to say a briefcase full of cash probably helped too

 

[wings396]

Seems as if he was feeling the heat from the others in office to revaluate his objection. As posted above, it doesn't appear that he was promised anything new.

 

[WorldTraveler]

The press release notes that there is agreement requiring the new AA to meet certain conditions including maintaining service to at least 20 airports in Texas, maintain DFW as a large hub, and maintain HDQ in Texas.

The airlines gave Texas what it wanted and Texas withdrew based on the agreement.

The same thing can happen in other states and with the Feds based on what each party is seeking.

 

[etops1]

Wasn't it AA/US's stance to keep maintaining service to all these airports and keeping DFW a hub, and keeping HQ there already ? So what was the problem ?

 

[WorldTraveler]

The chances were slim that new AA wouldn't have done all of that earlier... but remember that Alliance was just shut down. Texas wanted it in writing... as if that will result in something actually happening.

It also provides some political cover and even some political good will by arguing that Abbott is now ensuring that Texas will be protected.

Politics is not logical.

 

[ContUNITEus]

FORT WORTH, Texas and TEMPE, Ariz., Oct. 1, 2013 /PRNewswire/ -- Texas Attorney General Greg Abbott, AMR Corporation (AAMRQ), the parent company of American Airlines, Inc., and US Airways Group, Inc. (LCC) today announced they have reached an agreement for the Texas Attorney General to support the proposed merger of American and US Airways.

Under the terms of the agreement, the new American Airlines will maintain scheduled daily service to more than twenty airports in Texas. In addition, the agreement provides that Dallas/Fort Worth International Airport be maintained as a large hub airport for the combined airline and that the new American will maintain its headquarters in the Dallas/Fort Worth area.

http://finance.yahoo...-190700943.html


Seems now the Texas AG agrees with what the new American had promised all along!

I see. So, bribery works after all!!!

I am surprised that AA/US didn't tell the government of TX to shove that idea, as it would be akin to a government telling someone how and where to run a business. The irony of it all; but I guess, it's just about getting them to be on your side for the time being.

 

[traderjake]

The DOJ may have more pressing issues.

"A U.S. District Court Judge denied the Justice Department's motion to dismiss the House of Representatives’ lawsuit demanding administration documents related to the Operation Fast and Furious gun walking scandal."

http://www.breitbart.com/Big-Government/2013/09/30/Judge-Refuses-To-Dismiss-Fast-Furious-Lawsuit

 

[Jacobin777]

The chances were slim that new AA wouldn't have done all of that earlier... but remember that Alliance was just shut down. Texas wanted it in writing... as if that will result in something actually happening.

It also provides some political cover and even some political good will by arguing that Abbott is now ensuring that Texas will be protected.

Politics is not logical.

Basically "spot-on".

 

[ContUNITEus]

I wonder if US Airways/AA will be willing to make the same agreements with PA to keep PHL, AZ to keep PHX, NC to keep CLT, CA to keep LAX, NY to keep JFK, DC to keep DCA, IL to keep ORD and FL to keep MIA.

Make US/AA keep it all, no-matter what happens, then all those states will be fine and happy. PHX also would be required to keep a second headquarter - (now that'll be cool).

 

[jimntx]

FORT WORTH, Texas and TEMPE, Ariz., Oct. 1, 2013 /PRNewswire/ -- Texas Attorney General Greg Abbott, AMR Corporation (AAMRQ), the parent company of American Airlines, Inc., and US Airways Group, Inc. (LCC) today announced they have reached an agreement for the Texas Attorney General to support the proposed merger of American and US Airways.

Under the terms of the agreement, the new American Airlines will maintain scheduled daily service to more than twenty airports in Texas. In addition, the agreement provides that Dallas/Fort Worth International Airport be maintained as a large hub airport for the combined airline and that the new American will maintain its headquarters in the Dallas/Fort Worth area.

http://finance.yahoo.com/news/texas-attorney-general-announces-agreement-190700943.html


Seems now the Texas AG agrees with what the new American had promised all along!

Wonder if he talked with Cincinnatti or Memphis regarding promises made pre-merger and how well they were kept post-merger. Or, some of the cities that lost service after the UA/CO merger.

 

[jimntx]

the cynical part of me wants to say a briefcase full of cash probably helped too

In Texas, that is not being cynical. That is being realistic. We have the best government money can buy down here.

 

[cltrat]

In Texas, that is not being cynical. That is being realistic. We have the best government money can buy down here.

jim unfortunately I think that is true most everywhere

 

[RB211]

Don't forget TN. Although they are pissed off at Delta and taking it out on our merger .

 

[RB211]

AA screwed over Nashville years ago when they shut down the hub. Nashville spent millions on runways, terminals, and buildings for AA. Now it's a ghost town. No wonder TN hates AA.

 

[jimntx]

Even though the judge denied the DoJ's request for a continuance, and the pre-trial motions, conferences, and the trial will proceed as scheduled, she then said that she may not rule on the case until January.

http://blogs.star-te...il-january.html