[Travelandtourism] update AA-US Airways Merger
DJ Reese
atlanticstar1 at gmail.com
Fri Aug 30 15:47:26 UTC 2013
Cheryl:
Looks like serious negotiations are underway between AA/US and the DOJ on
resolving there objections to the merger. If AA/US comes up with a plan to
reduce slots at Washington's National Airport then this merger does have a
chance to happen. Guess we will see what the DOJ is willing to give back to
AA/US in return.
Reese
----- Original Message ----- AA-US AIRWAYS MERGER: DOJ OPEN TO SETTLING ITS
LAWSUITby Michèle McDonaldAugust 30, 2013
The Department of Justice (DOJ) indicated for the first time that it might
be open to settling its antitrust lawsuit against the proposed American
Airlines and US Airways merger.
In a joint statement to the court by the DOJ and the airlines, DOJ said the
“plaintiffs are open to a settlement that addresses the competitive harms
posed by the merger but have not yet received any such proposal from the
defendants.”
It was a narrow sliver of light – possibly just a show of good faith by the
DOJ – but it opened the door. The lawsuit and earlier statements by DOJ
officials seemed to leave little room for consideration of a settlement and
some observers said the department had painted itself into a corner.
Wiggle roomThe most likely area for wiggle room is the issue of slots at
Washington National Airport, where the combined carrier would hold 69% of
the slots and would have a monopoly on 63% of the nonstop routes served out
of the airport, according to the lawsuit.
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