Word is AA/US have settled with the DOJ

[WorldTraveler]

DL didn't announce its Love Field expansion so it can be told that the requirements of the DOJ/AA/US/WN backdoor deal means that DL can't operate from Love Field.
 
DL intends to ensure that it and other Airlines have the right to use Love Field just as they would every other airport in the US.
 
WN feels that they are entitled to take over Love Field and fly all over the US now since they were locked into using it to/from Wright Amendment cities for dozens of years. 
 
Let's not forget, though, that WN made the choice to operate from Love Field and not move to DFW.  They came up w/ all kinds of agreements with AA, DFW, and the cities to carve up N. Texas into pieces between themselves.
 
Then in the AA-US DOJ settlement, the DOJ decided it would take it upon itself to reregulate the US airline industry by dividing access between carriers with the stroke of a pen.
 
Problem for AA, US, WN, and the DOJ is that it is all illegal and DL will not be mocked and DL will not be told where it can and cannot compete in a country where it has been wildly successful in growing its franchise and competing effectively with all types of carriers.
 
The people who will be eating crow will be the ones that thought they had the nice backroom deals all sewed up.
 
They just happened to forget to check with Delta, who not only happens to have other ideas but also happens to be very effective at making its point in Washington, esp. with those who want to ensure that the US truly maintains a market-based economy.

 

[robbedagain]

Is there a link to that article where dl is challenging the doj

 

[Rogallo]

http://news.delta.com/index.php?s=43&item=2175

 

[WorldTraveler]

URGE in a press release becomes lawsuit if not corrected.
 
And it still doesn't change the legality of any settlement between one company that would require an airline to abandon service which is what the DOJ's intentions are. 

 

[robbedagain]

Thanks rog for the link even if dl filed lawsuit I dont think the chances are they would win given their already big in both dca n lga but time will tell

 

[Overspeed]

Forbes article on merger winners and losers
 
http://www.forbes.com/sites/airchive/2013/11/14/the-winners-and-losers-of-the-us-airways-american-merger/

 

[AANOTOK]

Forbes article on merger winners and losers
 
http://www.forbes.com/sites/airchive/2013/11/14/the-winners-and-losers-of-the-us-airways-american-merger/

Oops, someone forgot to check with WT before writing that article.

 

[700UW]

The word "urge" isnt the word "challenge", quite a big difference in meaning.

 

[cltrat]

The word "urge" isnt the word "challenge", quite a big difference in meaning.

hopefully they tell em to piss off

 

[700UW]

Oh they will.
 
Did you see WT's new pic?
 

DL and him are going to take over the World!

 

[cltrat]

^^^^^
Lmao!

 

[WorldTraveler]

hopefully they tell em to piss off

just following the law is all that is necessary.

I know it is one of those thinking type questions that is very unpopular around here, but where in US law is it allowed for the US government to determine what airlines should be allowed to serve markets?

The DOJ's mandate is to assess anti-competitive activities and block them.
Its job is not to restructure the airline industry.

Congress deregulated the industry in 1978.

DL will ensure that the divestitures of assets follow protocols that respect the laws we have in the US.

If WT is who has to tell you that is the way it will work, then consider yourself educated.

 

[eolesen]

I agree that DL won't be allowed to gain any of the DCA or LGA slots.   Notta chance.   As many have pointed out, AA would probably prefer that DL get them due to the fact that DL generally doesn't represent low-fare competition.    WN and B6 don't play the "live and let live" game that the legacies play, and will use those slots to lower to major destinations.

Actually, WN plays pretty well with the big boys these days. They match the fares fairly closely. WN's only real pricing advantage anymore is in their fare rules and fees.
 

The Dallas Love Field gates?   Closer call.   Don't know whether B6 is interested in them.   I suppose if B6 wants them, they would represent lower-fare competition than Delta.

 
My guess is we'll see Virgin America or Jetblue pursue the DAL assets. B6 has no presence, but does represent lower costs. VX would probably abandon DFW for DAL because it fits their image.
 

would you like to show us where in US law it is permitted for any office of the US government to allocate any domestic aviation resources based on the ability of any carrier to provide a certain level of pricing?

When it comes to competition, DOJ can pull that lever under HSR.

If two companies are pursuing the DAL gates, DOJ has the ability to determine which acquirer will serve the public good and preserve competition and access to low fares.

The judge already signed off on that provision, WT.

DL can challenge the settlement during the 30 day comment period underway. So can you -- file a brief with the court if you wish...

Failing that, it's a done deal and case law.

 

[WorldTraveler]

we have a legal system in the US that extends well beyond one judge.

And the DOJ and DOT DO NOT have the legal right to pick winners and losers in the airline or any other industry and they certainly don't have the legal right to kick competitors out of markets in order to insert other players into the market.

It is very possible that the case will result in the Wright Amendment and all of its decades-long revisions will end up at the Supreme Court where it will be determined that it has all been illegal. AA and WN along with ever other airline may be each free to compete in either airport and the same federal laws that require that gates be made available to competitors also apply to Love Field, which WN has treated as if it is their own private airport.

If you don't grasp how screwed up N. Texas aviation has been and how anti-competitive AA and WN have acted, then it will become very apparent to you in the very near future.

The very great risk to WN esp. is that their whole business plan was based on flying from a protected airport and because they negotiated directly with the DOJ and thought they could argue that they are disadvantaged, they could now lose it all based on their greed.

And then AA and US will find out that DL not only has won over NYC but now will set up light housekeeping again at DCA because the DOJ has no legal basis for saying that DL cannot bid on assets at DCA but other airlines do.

DL didn't send their schedule for Love Field service out as a trial balloon.

They launched the first volley in a legal contest that will shatter the settlement agreement and the way N. Texas aviation has been played for decades.

 

[eolesen]

How are all of those new flights that AA is launching to Star hubs going to do from CLT after US is no longer in Star?

Depends. US knows how many people were flying on a US flight connecting to LH, UA, or another Star partner. That's not going to show up in the public DOT data, but maybe they know something looking at the actual unredacted data that you can't figure out from your kitchen table in Brasil...

How much revenue loss will AA see because of the WA in Dallas? E and others think its negligible but history shows that AA isn't the dominant carrier in any single market from the combined DAL/DFW market that WN can now serve from DAL. At best AA has half of the local market.

At best AA has half the local market? You're the one smoking crack.

WN operates 200 flights a day out of DAL, and won't be able to increase that substantially because they're already maxed out on gates.

DFW has a total of about 950 flights a day, and AA represents 770 of those.

Combined market = 1150 flights, of which AA operates 67%, and WN operates 17%.

You can go ahead and adjust for seat gauge, but that's just going to skew the data further.

AA's still 4x larger than WN in the Dallas/Fort Worth market, and always will be.