Democrats may block mergers

[NYCDelta]

From the New York Times:
"Airline mergers are already on the political radar screen. Concerned about rising fares and the potential for reduced air service to small communities, Representative James L. Oberstar, Democrat of Minnesota, the next chairman of the House Committee on Commerce and Transportation, said yesterday that the Justice Department should block any major airline merger.
If it does not, Mr. Oberstar said, he would call hearings before his committee to consider action to block such mergers (three steps are necessary to approve an airline deal: the Transportation Department must determine that a merger is financially viable, the Federal Aviation Administration must approve a certificate of safety, and the Justice Department must determine that there are no antitrust issues).
Mr. Oberstar said the public could be harmed only by the sort of large mergers contemplated by US Airways and by United and Continental, and that those in turn would lead to other mergers.

“I don’t think there’s any benefit from mergers except for the benefit of stockholders and airline officials,â€￾ Mr. Oberstar said. “There is no benefit to the traveling public.â€￾

 

[dariencc]

If it does not, Mr. Oberstar said, he would call hearings before his committee to consider action to block such mergers (three steps are necessary to approve an airline deal: the Transportation Department must determine that a merger is financially viable, the Federal Aviation Administration must approve a certificate of safety, and the Justice Department must determine that there are no antitrust issues).

The Bush Administration controls Transportation, Justice, and the FAA, not Oberstar.

He headed the Aviation Subcommittee when the Dems were in charge prior to 1994. Always a lot of bluster in the press, never had any influence on past mergers and won't now.

dariencc

 

[Bulscu]

The Bush Administration controls Transportation, Justice, and the FAA, not Oberstar.

He headed the Aviation Subcommittee when the Dems were in charge prior to 1994. Always a lot of bluster in the press, never had any influence on past mergers and won't now.

dariencc

You mean?

In 1787 leaders of the states gathered to write the Constitution-a set of principles that told how the new nation would be governed. The leaders of the states wanted a strong and fair national government. But they also wanted to protect individual freedoms and prevent the government from abusing its power. They believed they could do this by having three separate branches of government: the executive, the legislative and the judicial.

 

[wings396]

“I don’t think there’s any benefit from mergers except for the benefit of stockholders and airline officials,â€￾ Mr. Oberstar said. “There is no benefit to the traveling public.â€￾
And I must ask once again, where was this guy when oil and utilty companies were merging? Oh, I forgot they must have tossed a few bucks into his partys shush fund!! :blink:

 

[a320av8r]

From the New York Times:
"Airline mergers are already on the political radar screen. Concerned about rising fares and the potential for reduced air service to small communities, Representative James L. Oberstar, Democrat of Minnesota, the next chairman of the House Committee on Commerce and Transportation, said yesterday that the Justice Department should block any major airline merger.
If it does not, Mr. Oberstar said, he would call hearings before his committee to consider action to block such mergers (three steps are necessary to approve an airline deal: the Transportation Department must determine that a merger is financially viable, the Federal Aviation Administration must approve a certificate of safety, and the Justice Department must determine that there are no antitrust issues).
Mr. Oberstar said the public could be harmed only by the sort of large mergers contemplated by US Airways and by United and Continental, and that those in turn would lead to other mergers.(NORTHWEST)
“I don’t think there’s any benefit from mergers except for the benefit of stockholders and airline officials,â€￾ Mr. Oberstar said. “There is no benefit to (Minnesota)the traveling public.â€￾

Called politics.

 

[delta777]

The Bush Administration controls Transportation, Justice, and the FAA, not Oberstar.

He headed the Aviation Subcommittee when the Dems were in charge prior to 1994. Always a lot of bluster in the press, never had any influence on past mergers and won't now.

dariencc

Huh??? Since when did the Bush Administration, or any Administration for tha matter, have jurisdiction over the DOT/DOJ with regards to aviation mergers???

And why on God's green Earth would you not think that the person who is now the new Chairman of the House Transportation and Infrastructure Committee, who has already come out vehemenently against major airline mergers, not have any influence???

Please state facts only, personal opinion, no matter how ignorant, doesn't make a case.

 

[dariencc]

Huh??? Since when did the Bush Administration, or any Administration for tha matter, have jurisdiction over the DOT/DOJ with regards to aviation mergers???

You need a basic civics lesson. The DOT and DOJ are part of the Executive branch of government. Their respective Secretaries are Cabinet level officers of the Bush Administration. They answer to President Bush, not Mr. Oberstar.


And why on God's green Earth would you not think that the person who is now the new Chairman of the House Transportation and Infrastructure Committee, who has already come out vehemenently against major airline mergers, not have any influence???

For the reason described above. Mr Oberstar has a long history as a gadfly against airline mergers. He has never been able to stop them in the past. In addition, Mr. Oberstar, a Democrat, will certainly have less influence with the Administration than will the ranking minority member, Republican John Mica.


Please state facts only, personal opinion, no matter how ignorant, doesn't make a case.

Your writings on this forum are a joke. You obviously are not a strong enough person to deal with a minor life event such as an airline merger without becoming unhinged. Life deals everyone hardships much worse than this. Grow up.

 

[scuba]

Either the industry is deregulated or it is not. If it is then the Government should stay out! If it is, then every thing should be regulated, including fares, service and competition.

I'm tired of everybody wanting it both ways. They want competition, but when the airlines suggest mergers, they cry because they are afraid it will hurt competition. Maybe it will help competition because the remaining airlines will have to concentrate on service, not just price as they do today. Besides, the remaining airline employees can not continue to subsidize the traveling public.

 

[LGA Fleet Service]

I think the real reason for his sound bites is more for the 'protection' of the home state airline than anything else.

 

[BoeingBoy]

Either the industry is deregulated or it is not.

Quite the contrary - this industry is deregulated and regulated. Fares and routes are mostly deregulated (domestically and excepting slot controls at LGA & DCA). Pretty much everything else is regulated in one way or another.

Not really unlike every industry in this country. Some are just a little more unregulated and some are a little more regulated.

Jim

 

[delta777]

For the reason described above. Mr Oberstar has a long history as a gadfly against airline mergers. He has never been able to stop them in the past. In addition, Mr. Oberstar, a Democrat, will certainly have less influence with the Administration than will the ranking minority member, Republican John Mica.-dariencc

Your a modern-day Sherlock Holmes!!! Up until this point, Mr. Oberstar wasn't Chairman of the House Transportation and Infrastructure Committee either. So much for the gadfly comment.

And would you mind giving me one example, JUST ONE, where ANY President stepped in and overturned a DOT/DOJ decision on ANY airline merger??? Never happened.

Keep drinking the Kool-aid my friend. You have a knack of spouting off all the reasons why the DOT/DOJ won't dare challenge this merger, and if it did, the mighty Bush Administration would overrule them, yet not one FACT to back up your unsubstantiated claims.

 

[Bulscu]

I'm thinking he implies, who would start such a venture without first running it past those that make the discissions, ie, dot/doj, congressmen,senators, etc., would you or anyone you know involved in any size or level of business?

I sure don't know, but, I would think 'they' have their 'Ducks in a Row.'

IMHO

 

[RowUnderDCA]

I can tell you that the Bush Administration controls its agencies. In fact, it's pernicious and destructive re-writing of simply facts is practically a cliche in the news over the past 6 years. It DEFINITELY controls judgment calls by the agencies.

 

[Bulscu]

I can tell you

Are you saying,'if' they've accepted the premise of consolidation, and that by virtue of the 'seperation' of the three branchs, it'll happen?

 

[delta777]

I'm thinking he implies, who would start such a venture without first running it past those that make the discissions, ie, dot/doj, congressmen,senators, etc., would you or anyone you know involved in any size or level of business?

I sure don't know, but, I would think 'they' have their 'Ducks in a Row.'

IMHO

Right, i'm sure that US Airways called up the DOT/DOJ beforehand that they planed on buying Delta. Its just that easy isn't it?

I can tell you that the Bush Administration controls its agencies. In fact, it's pernicious and destructive re-writing of simply facts is practically a cliche in the news over the past 6 years. It DEFINITELY controls judgment calls by the agencies.

??? What makes you think the Bush Administration cares about this or an other merger, they have no dogs in this fight, they could care less. And even if they did try and overrule the DOT/DOJ on this matter, they'd better have a damn good reason.

FACE IT, Oberstar has already killed this "MERGER".