Antitrust Thoughts

Over the past week, I keep thinking about a few things related to the US Government’s stance on the US Airways / American Airlines merger and, specifically, their cited concerns about the merger.  Here they are in no particular order:

 

  • The DoJ was remarkably absent when the Wright Amendment undoing was being done.  Love Field Airport was essentially made a single airline airport . . . forever.
  • American Airlines now controls the following terminals at DFW International Airport:  Terminal A, Terminal B, Terminal C and parts of Terminal D.  The remaining terminals available to other airlines are . . . Terminal E
  • Delta . . . Atlanta . . . enough said.
  • No one seems to be trying to preserve flights to and from small cities in other parts of the country but anyone who wants to remove silly flights into Reagan National is deemed a danger.
  • Delta . . . Minneapolis . . . enough said.
  • Delta . . . Detroit . . . enough said.
  • United . . . Houston . . . stranglehold.
  • Southwest . . . Love Field and Midway airports

By the mandate cited by the DoJ, the antitrust department would appear to have a strong duty to investigate and correct these defects as soon as possible.

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2 Responses to “Antitrust Thoughts”

  1. i am an employee of US and i’m disgusted in the governments handling of this case. i’ve also read the texas ag’s reason for tagging along in the lawsuit. it appears to me that he has not had his hand greased. when i hear that our merger will ‘harm the consumer and stifle competition’ i get even angrier. and here’s why. i am a consumer. my fellow employees are consumers. my future coworkers at AA are consumers. if we are working for a stable company, and yes, maybe even FINALLY obtaining a good wage, then we will be so inclined to maybe purchase a car, or a house, or a boat, or, good heavens, even save for retirement. if we spend, then we contribute to the overall economy of the country. that’s good. atleast i thought it was good. but, LET ME MAKE THIS PERFECTLY CLEAR TO ANY AND ALL. I WILL NOT WORK FOR MINIMUM WAGE SO THAT MA AND PA KETTLE CAN FLY FROM POINT A TO B FOR THE PRICE OF A BUS TICKET. I WON’T DO IT. AND NO ONE SHOULD EXPECT US TO. this lawsuit makes no sense whatsoever. none of it. it is the FIRST TIME that the ‘department’ has looked at ‘connecting’ routes versus overlap. i’m sure if one goes back in time, you can see plenty of connecting route overlap with UA/CO, NW/DL, & WN/FL. again, it makes no sense. i’m also curious as to why the broohaa over DCA. has anyone EVER sought to look at the choke hold DL holds at LGA? nope. not a one. as for the closure of hubs. take for exapmple PIT. in the dark days of my company, wolf, segal,lakefield, AND parker went to allegheny county AND moon township to bring down rates that reflected the cost of doing business at the sparkling new PIT. well guess what. they said no. they would not even think of working with their ‘hometown airline’. we tried to make it work, but, the demographics changed. the O&D market changed. the traffic is just not there. you can feed it all you want and you still will not be able to pull the loads that make it a hub. hell, even WN is realizing this and is pulling flights out of there. if PIT is such a great place to hub, then why hasn’t any other airline out there jumped in? it just won’t work. same for MEM and STL. without the proper amount of O&D traffic, no hub will work. now, let us revisit the ‘so called gouging of the consumer’. has ANYONE looked at their cable bill? or their cell phone bill or, heck, even their gas and electric bill? WHERE WAS THE DEPARTMENT WHEN NBC UNIVERSAL merged with COMCAST? or, where was the department when comcast began sucking up all the small local cable companies. or the big oil companies doing the crap they are doing.
    this merger is good for the employees and the consumer. it needs to be approved and approved asap.
    thanks for letting me vent.

  2. Your comments are welcome. Employees of both of these merger candidates should make their feelings known to their states and the Department of Justice. And talking to a Congressman can’t hurt either.

    Greg Robinson

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