JUSTICE DEPT SUES TO BLOCK US/AA MERGER

[MCI transplant]

well if they do not allow it to happen whose to say that each of the airlines will continue to raise the fees the fuel goes up losses start to pile up then in the end it would be like well doj you rejected our merger you let dl/nw co/ua and fl/wn merge fees still went up and they will still go up

So what do they think the new AA would do? Put credit card swipes on lavatory doors? That's about the only new fees that the Airlines haven't taken advantage of!

 

[robbedagain]

the point is the fees will most likely go up with or without a merger but if the doj gets their way and they may very well it wont take long before the fees go up and then how will those a holes react then? thats what i was trying to say of course it would not shock me if they tried the card swipe to use the lavs

 

[Barfbag]

do we ?

you know in other countries , take south Africa for example , the workers there actually have the backbone to oppose their own government , the miners strike a few years ago were horribly violent , but it brought world wide attention and forced their government to sit down at the table ...

I'm not advocating violence , I'm just trying to illustrate that in MANY countries , when the workers actually speak up and take to the streets instead of passively just going along with it , things tend to work out for those who stand up for themselves .

Mergers are anti labor, you can't pretend one day to carry a union card and the next day want a seat on the board of directors.

 

[MCI transplant]

Question----- So what are they going to do about all those US people, that I've been told, that have already been put into Management positions in places like TUL,? ------- Or have I been told wrong? And all the AA Management types that Parker has already gotten rid of at AA?

 

[737823]

Mergers are anti labor, you can't pretend one day to carry a union card and the next day want a seat on the board of directors.

See S. Randy Canale from IAM/UAL

He tried unsuccessfully to condition the UA membership to give concessions before UA filed Ch 11 and worked to give the Co everything they wanted.

Josh

 

[Barfbag]

Question----- So what are they going to do about all those US people, that I've been told, that have already been put into Management positions places like TUL,? ------- Or have I been told wrong? And all the AA Management types that Parker has gotten rid of at AA?

The same thing they told all those TWA managers who went to DFW for briefings on AA policies.. thinking they had jobs... Hey there buddy..you're out of luck.. Take a hike..

 

[BigMac]

Question----- So what are they going to do about all those US people, that I've been told, that have already been put into Management positions in places like TUL,? ------- Or have I been told wrong? And all the AA Management types that Parker has already gotten rid of at AA?

I haven't seen any US personnel at Tule yet.

 

[FWAAA]

Mergers are anti labor, you can't pretend one day to carry a union card and the next day want a seat on the board of directors.

I don't pretend to know the feelings of most AA or US employees on the pending merger, but typically, rank and file would prefer organic growth to mergers. Some people have posted on this website over the past decade that they would like to see some organic growth at AA. Unfortunately, the past decade has seen nothing but contraction at AA (and many of the other legacies) as the low-cost airlines (like nonunion B6 funded by Soros) and nonunion VX (funded by Branson) took away revenue from AA. When your costs are higher than everyone else's, you tend to shrink, not grow.

The AA board of directors finally over-ruled anti-bankruptcy Arpey and directed Horton to file. It wasn't unexpected - Ch 11 was viewed as the failsafe way to shove the efficient contracts up the pilots' and FAs' asses. So where were the leaders of the pilots' and FAs' union when they should have been negotiating with Horton for those new contracts? According to AA and the bankruptcy court, they were wining and dining with Parker and embracing a merger. In their irrational hatred of the hatchet-man Horton, they were claiming that AA's only hope was to merge with US. All the while, Parker and Kirby were telling everyone else that both US and AA would be just fine without a merger.

Now, today, thanks to the DoJ, we read statements that US management was running scared of the Horton 20% growth plan that he announced in Feburary, 2012. Parker knows that US is in trouble without a merger. Some of us have been saying that for years.

I understand why the US pilots and FAs are happy about the merger - some US pilots were boasting on this website of the 30%+ raises that they were going to get immediately under the MOU. Parker had finally found a way to afford industry-average wages - merge with AA and make the AA employees subsidize them. Those pilots and FAs must be very blue this morning, as their huge raises may have just evaporated.

This clears the way for organic growth at AA. No seniority list integration issues and no group of low-paid pilots and FAs taking an outsized share of AA's employees' givebacks. I'll bet Horton is pleased this morning, but I'd guess that there are some happy AA rank and file employees as well.

 

[dfw gen]

Freedom is the same guy who voted for the money at US on the ramp that got hundreds of his coworkers laid-off as their jobs were outsourced, and he was warned what would happen.

so freedom is don vidititch?

 

[robbedagain]

dont count it over yet the airlines going to fight it in court and i think they might have a good case but we shall see

also on aol.com the big article regarding it says it could be that they want a lot more divestures and that all the experts were caught completely off guard esp given how they approved the mergers of DL/NW CO/UA WN/FL

 

[freedom]

Organic growth ?

In an American economy where one in seven Americans is dependent on the government for food ?

In an American economy where the mortgage industry which is the primary store of wealth for most people is completely and utterly dependent on the government and low interest rates ?

In an American economy that's is so terrified of higher taxes that they have turned hundreds of thousands of full time employee's into part time employee's in an effort to evade the costs of Obamacare ?

I could go on and on and on ... there is NO organic growth to be had ... perhaps in the halls of the DOJ and the white house where they may actually believe their own propaganda that the economy is recovering but here on main-street it's crystal clear to me that the only thing currently propping up our markets is the 85 BILLION dollars a month that we GIVE to wall-street .

 

[USFlyer]

The other fact here is that the last time DOJ filed to block a merger, they won. US and UA didn't merge, much to the chagrin of Wolf and Chip Munn....

Not quite. UA wanted out and refused to negotiate over DC to get out. No one ever went to Court. I also think the DOJ overstepped its bounds here. Their job is not to ensure consumers have great airline service or to prevent competition from being reduced. All mergers reduce competition -- that's the point. The DOJ's job is to keep a check on monopolies, which would not have happened here. I suspect this is why Parker intends to fight this in front of a judge. He may still lose, but I think he has a lot of valid arguments.

 

[freedom]

August 13, 2013

A Message from Chairman and CEO Tom Horton

Dear American Team,

Today we learned the Antitrust Division of the U.S. Department of Justice (DOJ) will oppose our pending merger with US Airways. I wanted to quickly let you know the implications of this decision and to explain what’s next.

As you probably know, this merger in the context of a restructuring, has been a very complex undertaking. It has formed the basis for an unusually successful restructuring, with very positive outcomes for our people, our customers, our owners and the communities we serve. But, it was also subject to a number of approvals including US Airways shareholders, AMR creditors, the Court, and the United States and European Union regulatory authorities. The US Airways and AMR financial stakeholders have voted overwhelmingly in support of the merger and the EU approved the merger. We always expected U.S. regulatory approval to be the final hurdle to clear.

We and our counterparts at US Airways have been working with the DOJ staff for months to ensure that they had an informed view of the merger. We have maintained that the merger is complementary (only 12 overlapping routes), that it provides significant customer benefits and that it enhances competition in the airline industry.

Since the DOJ has formed a contrary view, the matter will now be settled by the courts. The DOJ has filed a lawsuit in federal district court to enjoin the proposed merger. We and US Airways will vigorously defend our position. While we do not yet know how long the court process will run, it will likely take a few months.

In the meantime, American and US Airways will continue to operate as independent companies and competitors. All recent leadership announcements for the new merged American will be on hold until such time as the merger receives final clearance.

Throughout this restructuring, the people of American have stayed focused on caring for our customers day in and day out. And the results speak for themselves. American is again strong, profitable and competitive as evidenced by our record-setting second quarter results. As we work through the court process to clear our merger, let’s keep building the momentum of the new American.

Thanks for all you do.

Tom

 

[Jacobin777]

I don't pretend to know the feelings of most AA or US employees on the pending merger, but typically, rank and file would prefer organic growth to mergers. Some people have posted on this website over the past decade that they would like to see some organic growth at AA. Unfortunately, the past decade has seen nothing but contraction at AA (and many of the other legacies) as the low-cost airlines (like nonunion B6 funded by Soros) and nonunion VX (funded by Branson) took away revenue from AA. When your costs are higher than everyone else's, you tend to shrink, not grow.

The AA board of directors finally over-ruled anti-bankruptcy Arpey and directed Horton to file. It wasn't unexpected - Ch 11 was viewed as the failsafe way to shove the efficient contracts up the pilots' and FAs' asses. So where were the leaders of the pilots' and FAs' union when they should have been negotiating with Horton for those new contracts? According to AA and the bankruptcy court, they were wining and dining with Parker and embracing a merger. In their irrational hatred of the hatchet-man Horton, they were claiming that AA's only hope was to merge with US. All the while, Parker and Kirby were telling everyone else that both US and AA would be just fine without a merger.

Now, today, thanks to the DoJ, we read statements that US management was running scared of the Horton 20% growth plan that he announced in Feburary, 2012. Parker knows that US is in trouble without a merger. Some of us have been saying that for years.

I understand why the US pilots and FAs are happy about the merger - some US pilots were boasting on this website of the 30%+ raises that they were going to get immediately under the MOU. Parker had finally found a way to afford industry-average wages - merge with AA and make the AA employees subsidize them. Those pilots and FAs must be very blue this morning, as their huge raises may have just evaporated.

This clears the way for organic growth at AA. No seniority list integration issues and no group of low-paid pilots and FAs taking an outsized share of AA's employees' givebacks. I'll bet Horton is pleased this morning, but I'd guess that there are some happy AA rank and file employees as well.

+1

August 13, 2013

A Message from Chairman and CEO Tom Horton

Dear American Team,

Today we learned the Antitrust Division of the U.S. Department of Justice (DOJ) will oppose our pending merger with US Airways. I wanted to quickly let you know the implications of this decision and to explain what’s next.

As you probably know, this merger in the context of a restructuring, has been a very complex undertaking. It has formed the basis for an unusually successful restructuring, with very positive outcomes for our people, our customers, our owners and the communities we serve. But, it was also subject to a number of approvals including US Airways shareholders, AMR creditors, the Court, and the United States and European Union regulatory authorities. The US Airways and AMR financial stakeholders have voted overwhelmingly in support of the merger and the EU approved the merger. We always expected U.S. regulatory approval to be the final hurdle to clear.

We and our counterparts at US Airways have been working with the DOJ staff for months to ensure that they had an informed view of the merger. We have maintained that the merger is complementary (only 12 overlapping routes), that it provides significant customer benefits and that it enhances competition in the airline industry.

Since the DOJ has formed a contrary view, the matter will now be settled by the courts. The DOJ has filed a lawsuit in federal district court to enjoin the proposed merger. We and US Airways will vigorously defend our position. While we do not yet know how long the court process will run, it will likely take a few months.

In the meantime, American and US Airways will continue to operate as independent companies and competitors. All recent leadership announcements for the new merged American will be on hold until such time as the merger receives final clearance.

Throughout this restructuring, the people of American have stayed focused on caring for our customers day in and day out. And the results speak for themselves. American is again strong, profitable and competitive as evidenced by our record-setting second quarter results. As we work through the court process to clear our merger, let’s keep building the momentum of the new American.

Thanks for all you do.

Tom

Doesn't sound like he's as desperate for a merger as Parker is.

 

[FWAAA]

Not quite. UA wanted out and refused to negotiate over DC to get out. No one ever went to Court. I also think the DOJ overstepped its bounds here. Their job is not to ensure consumers have great airline service or to prevent competition from being reduced. All mergers reduce competition -- that's the point. The DOJ's job is to keep a check on monopolies, which would not have happened here. I suspect this is why Parker intends to fight this in front of a judge. He may still lose, but I think he has a lot of valid arguments.

About that bolded portion, you may want to read Section 7 of the Clayton Act, which is the statute under which the DoJ has filed suit:

No person engaged in commerce or in any activity affecting commerce shall acquire, directly or indirectly, the whole or any part of the stock or other share capital and no person subject to the jurisdiction of the Federal Trade Commission shall acquire the whole or any part of the assets of another person engaged also in commerce or in any activity affecting commerce, where in any line of commerce or in any activity affecting commerce in any section of the country, the effect of such acquisition may be substantially to lessen competition, or to tend to create a monopoly.

"substantially to lessen competition" would seem to be satisfied here.

Nothing would be funnier than a court battle. The DoJ has already released some embarrasing quotes from Parker and Kirby in the complaint - a trial would mean public release of reams of emails and memos demonstrating Parker's contempt for his employees and his customers.