U.S. government, two airlines say open to settling merger fight

[WorldTraveler]

are the bombs falling in Syria yet?

 

[767one]

This sounds so early 2000's it makes me want to puke. Same cast of charachters

Soulds exactly like 2000. My memory isn't perfect but I think John Mccain pushed a bill called "air 2000" or something like that. The bill removed all slot restrictions at LaGuardia and turned the airport into a total cluster f87k. I remember coming in from RDU one night we were already 4 hrs late and landed after 2am on runway 22. We were going to make a left turn off but ATC said make a right turn off and we then found out there were almost 70 airplanes ahead of us waiting for gates. The sun was up for a while before we finally got a gate. Deregulation is a misnomer, it is more like mega over regulation.

Bob

 

[767one]

yes, the slots are only part of the problem. as has been noted, there are other issues including consolidation of the industry and comments by AA and US execs that will result in some sort of behavioral solution. The slot issue is the easiest to speculate about which is why I guess it gets discussed so much.....

Remember that the judge is a federal worker and she chose the date of the trial.

The point of filing a suit is often to force a settlement after initial discussions didn't produce the movement that the DOJ wanted. If the DOJ really requested almost 3X more slots than Parker was willing to offer and if there really are talks now - and who knows what other items - then the DOJ has succeeded in forcing negotiations.

I strongly suspect the case will never go to trial and the settlement will be a lot closer to what the DOJ wanted and lot less what Parker was willing to offer - but we will never know what those talks involved before the suit was filed.

WT,

I think Parker will give everything it takes to make this work even if it kills the airline.

 

[FWAAA]

I think Parker will give everything it takes to make this work even if it kills the airline.

If history is any guide, I agree. Parker was so hell-bent on "winning" and beating the government in the DCA-LGA slot swap that he ensured that new AA will forever be smaller at LGA than Delta. All for $68 million in cash, future rights to GRU and about the same number of DCA slots as he would inherit if he took over AA. I can easily see him paying far too much to get this merger approved.

 

[Kev3188]

There will be a UCT (Unique Corporate Transaction) between the Ft. Worth-based carrier and the Tempe-based carrier before November 25.

Dry heaving now?

Lol. Well played...

 

[UPNAWAY]

NBC Channel 5 in Dallas had a report today that AA, US, JD and a mediator may begin negotiations as early as next week.

 

[Pi brat]

NBC Channel 5 in Dallas had a report today that AA, US, JD and a mediator may begin negotiations as early as next week.

Did you see it? I don't see anything on their website and nothing else on the news.

 

[AANOTOK]

Did you see it? I don't see anything on their website and nothing else on the news.

I saw it on the local NBC news early this morning stating the meeting would occur next week and if no settlement could be reached, the trial would begin November 25th.

 

[Pi brat]

I saw it on the local NBC news early this morning stating the meeting would occur next week and if no settlement could be reached, the trial would begin November 25th.

Thanks, haven't seen anything about negotiations to take place.

 

[UPNAWAY]

It was a guest or reporter talking about it. A friend Big D called me and passed it on.

 

[Pi brat]

Thanks, hope it's true and they settle. With the wide ranging suit I didn't initially see that as an option.

 

[Phoenix]

NBC Channel 5 in Dallas had a report today that AA, US, JD and a mediator may begin negotiations as early as next week.

They better hurry up. Silver needs a break.

 

[Reed Richards]

Here is the Channel 5 link. They address the "possible" mediation next week. RR

http://www.nbcdfw.com/video/#!/news/local/Bankruptcy-Court-Points-to-Approval-of-AA--US-Airways-Deal/223569991

 

[USA320Pilot]

There have been signs for the past week or so that the Justice Department and the two companies may settle the antitrust lawsuit. Some of the signs include equity accumulation by American and US Airways’ shareholders, the increase in price of AMR’s bonds, the derivative put/call ratio, Dave Barger publicly lobbying twice within the past 10days for the DOJ to require all 50 of AMR’s DCA slots to be divested, US Airways seeking an expedited ruling by September 13th on its motion to intervene in the Addington II trial for the purpose of permitting the West pilots to represent them self in the upcoming M-B SLI after the merger with American closes, and USAPA filing a Writ of Mandamus with the Ninth Circuit Court to dismiss the Addington II DFR lawsuit/associated actions.
[background=transparent]
In addition, there have been positive judicial developments including the companies leaking they would ask their Boards to extend the merger termination deadline, AMR's POR conditionally confirmed, and Tom Horton informing the Bankruptcy Court he will ask AMR's Board to withdraw his $19.75 million payment.[/background]

It would not surprise me if there is an antitrust lawsuit settlement in the not-too-distant future.

 

[Jester]

NBC Channel 5 in Dallas had a report today that AA, US, JD and a mediator may begin negotiations as early as next week.

I heard from some very reliable sources that Scott Kirby was on an afternoon PHX-DCA flight last Thursday, even going so far as to introduce himself to passengers and crew. Could be nothing or it could be related to DOJ negotiations.