Word is AA/US have settled with the DOJ

[jimntx]

And how, pray tell, is giving up our gates at DAL going to improve competition at that airport for the people of Dallas?
 
[that is] Stupid, stupid, stupid!

[/quote]
 
What is stupid is paying the lease payments on those unused gates all these years.  We all knew they would never be used for anything other than keeping WN from using them.  I think we proved with the "Premium" F100 service and the wildly unsuccessful DAL-STL service that we have no need for gates at DAL.

 

[USFlyer]

Maybe it's just me, but it appears the DOJ caved.  These don't seem like many divestitures in the grand scheme of things.  Combined AA/US can easily absorb these divestitures by upgauging, eliminating duplicate routes, downgauging/deemphasizing the Shuttle (who doesn't take Amtrak NY-DC and NY-BOS these days anyway?), etc.  To me this is a pretty good deal to get the deal closed and avoid the uncertainty of a court decision.  It's a lot less than I thought would be required.

 

[jimntx]

From Airluver's post:
 
"And consider that AA still had not committed to a schedule out of DAL when Wright restrictions are eased."
 
That would be what is referred to in courts as a moot point.  We only have two gates at DAL.  We are giving up two gates at DAL in order for the merger to go through.  We would have to have gates at DAL in order to "commit to a [post-WA] schedule." AFAIK, LCC does not have any DAL gates; so, that would not be an end-around on the divestiture of our gates.

 

[robbedagain]

my own personal opin is that dl should not be allowed to regain those slots back since they did the slot swap deal w us     just my own opin wt  nothing against you   

 

[USFlyer]

On a conference call today, the DOJ all but said UA and DL will not get any slots.  The DOJ will provide a list of qualified buyers to AA+US, who is then free to negotiate with those buyers on the acquisition of the slots.  No one carrier can buy all of the slots.

 

[robbedagain]

USFLYER  does that mean dl and ua cannot bid for the slots?

 

[Overspeed]

Arent we all supposed to get raises once the merger happens? What % is it supposed to be?

 
4.3% or $1.21/hour for AMTs

 

[FWAAA]

USFLYER  does that mean dl and ua cannot bid for the slots?

I suspect that the fine print will prevent DL or UA from obtaining any of the slots unless there are slots left over that WN, B6, VX and NK (and maybe Westjet) don't want.   

 

[FWAAA]

 
4.3% or $1.21/hour for AMTs

In exchange for what's left of your profit sharing percentage, right?    Idiots.    

 

[AdAstraPerAspera]

 
What is stupid is paying the lease payments on those unused gates all these years.  We all knew they would never be used for anything other than keeping WN from using them.  I think we proved with the "Premium" F100 service and the wildly unsuccessful DAL-STL service that we have no need for gates at DAL.

 
Soo true, it was also just stupid (stupid, stupid) to start DAL-STL and DAL-MCI in the first place… what were they thinking? At least on WN flying to STL and MCI provides connection opportunities… AA's flights benefited nobody on either end. What a shocker that they were a failure.
 
However, I was looking forward to seeing what flights AA was planning to start from DAL. One of my first days of training, Chuck Shubert, VP of network planning came by my classroom for a meet and greet at FSU. I asked him what he was planning for DAL, of course he couldn't tell me, but he said they had a plan of action. From a purely selfish standpoint, I was just looking forward to being able to non rev to DAL nonstop from LGA because the airport is way more convenient to my family-in-law. Guess I will have to take the inevitable Delta flight instead, no doubt operated on one of Shuttle America's E170s…
 
Edit: Guess we'll never know...
 
astra

 

[AirwAr]

Well, US/AA agreed to the terms. So apparently it is not crap according to them.

DP was willing to give up anything to get this deal.  The DOJ knew it...hell, he even unzipped his fly when he bought a house in Dallas prior to the decision.   I think this is just but a small indication of the shrewd business man that he is NOT.
 
I think in the long term, AA will survive not because of him...but despite him.  
 
That said, congrats to you US employees!

 

[Overspeed]

AW&ST article on merger agreement
 
http://www.aviationweek.com/Article.aspx?id=/article-xml/awx_11_12_2013_p0-636093.xml

 

[wings396]

anyone who doubts that DL will end up with some of AA/US' DCA slots might want to notice that DL had a press released out within hours.....http://finance.yahoo.com/news/delta-responds-aa-us-merger-183700885.html"Delta welcomes the settlement agreement and looks forward to the opportunity to acquire slots that will be divested under the agreement, particularly at Washington-Reagan National Airport. Delta is the airline best positioned to continue competitive nonstop flights from Reagan National to small- and mid-sized cities that could otherwise see service reduced or eliminated, which should be a strong consideration in the divestiture."

Don't hold your breath on this one. DL can put out press releases galore, but I don't see that amount to more than some chest pounding. Maybe the DOJ will now go after some of DL's LGA slots....

 

[eolesen]

I've read the text of the agreement.

AA gets to sell the slots to no fewer than two buyers.

The 10 slots at LGA already leased to WN go to WN, so they get to transfer the ownership. Likewise for the slots at DCA that Jetblue was already leasing from AA.

The remainder? It's unlikely that AA would be selling anything to DL or UA.

My read is that AA gets to collude with WN and B6 to carve up the remainder of DCA. Nobody else will have the cash to do so, certainly not NK or F9...

AA is giving up L1/L2 at ORD, but gets to keep the US gates over on E/F.

At LAX, they're giving up two gates in Terminal 3 (I'm sure DL is doing a happy dance on that), but as mentioned, the capacity at TBIT is a wash.

The agreement also requires giving up gates at DCA to make it work, and it looks like they chose the AA gates to sacrifice. (Up to five (5) gates from among Gates 24, 26, 28, 30 and 32, if necessary)

The agreement stops AA from reacquiring the divested slots for 10 years, but doesn't seem to block them from buying other slots @ either DCA or LGA on the open market.


Unsaid in all this: the only jobs lost are at DCA. The number of slot pairs probably equates to a couple of ground crews which would likely be attrited out instead of outright layoffs.


The only wrinkle left is if the anti-trust judge finds the terms too lenient. Judges don't have to rubber stamp a settlement, but she probably will.

 

[eolesen]

Here's the full text of the proposed settlement, as opposed to journalists interpretations of it.

http://ia600909.us.archive.org/26/items/gov.uscourts.dcd.161498/gov.uscourts.dcd.161498.147.2.pdf