Merger Humor.....
Nov 1, 2000, 10:28 am
#1
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Posts: 6,540
Merger Humor.....
Business Travel Coalition Chairman Kevin P. Mitchell penned the following
spoof in the spirit of encouraging public policy debate regarding the
proposed United Airlines-US Airways merger. May be reprinted without
permission.
-------------------------------------------------
PRESS STATEMENT
DOJ Approves UA-US Merger
Untied-US Airlines Good For Consumers Says BTC
Washington, DC-November 1, 2004-The Business Travel Coalition (BTC) today
applauded a decision reached by the U.S. DOJ to allow the consummation of
Untied Air's (UA) proposal to merge with US Airlines (US). On the steps of
the Justice Department earlier today, during a joint Press Conference with UA
and US, BTC Chairman Kevin P. Mitchell summed up the palpable euphoria in the
air when he said, "What a difference four years can make," alluding of course
to UA's failed attempt to purchase US in 2000.
BTC identified just three of the industry changes that enabled its support:
1. All U.S. Presidential candidates vowed to sign the EU-U.S. Transatlantic
Air Transport Trade Treaty which will eliminate restrictive bilateral
agreements, level the playing field for new entrants and allow airlines to
reap benefits of true globalization enjoyed by other industries.
2. The U.S. Congress repealed laws restricting foreign ownership of U.S.
airlines ushering in a new era of domestic competition. Richard Brandson is
among the more that seven well-financed foreign entrepreneurs applying to DOT
for certification.
3. As a result of DOT implementing Competition Guidelines in June 2001,
domestic start-ups reached record levels in 2002 as investors poured money
into the sector with renewed confidence that DOT will no longer allow
exclusionary practices.
Speaking to hundreds of reporters, a deliriously jubilant UA Chairman, Jamie
Goodwins, gushed that his legacy was finally within reach. Goodwins,
straying from prepared remarks mused, "I know we said in 2000 that our best
customers were demanding the merger, but it never dawned on us to actually
ask them, or seek their support. Rest assured, UA will continue in this
tradition of innovation!"
In relaxed banter with reporters, Goodwins continued somewhat wistfully,
"Boy, if we only had customer support in 2000, I would have been king of the
world by now. Just consider the supportive environment in 2000, and how
clever our timing was. DOJ was distracted by a lawsuit to undo
Continental-Northwest. Congress was chasing airport congestion issues.
Travel agencies were obsessing over Orbitz, and business fares were so
outrageously high, corporations were just numbed into paralysis."
Projecting a more regal image, outgoing US chief Steve Wolfee III stated, "I
personally thought CDAir was a pretty brilliant play. To this day I believe
that when you reduce competition, everybody wins. That much-maligned
University study UA paid for proved that there was an impressive $14 million
in consumer benefits from the merger. It was not too long ago, that $14
million would have been considered an acceptable exit package for someone
like me. But I must say, I remain bewildered by criticism that the
University study did not calculate costs to consumers of business fare
increases and lost or degraded service to mid-size communities."
In response to pointed questions from USTODAY reporter David Fieldings,
Wolfee lamented, "After four years of reflection, I still fail to see the
inconsistency of UA suggesting that US was unfit to survive as an ongoing
concern while offering a 100% stock premium. It's frustrating that some
people still do not understand airline economics."
In an obvious shift in tone, and sounding a tad defensive, Goodwins jumped
in, "We argued all along in 2000 that the DOJ decision should be apolitical
and based solely on straightforward HHI market concentration analysis. We
only funded University and Think Tank studies, took out full page
advertisements, hired 14 public relations firms, 6 law firms, 27 consultants,
3 former DOT Secretaries--and tried to kill the Senate Commerce Committee
Resolution--to make sure everybody understood this point."
The Press Conference ended on a lighter note, however, with Wolfee responding
to a question he had been secretly waiting for. With a bounce in his voice,
Wolfee acknowledged he has been in serious talks with front running
Presidential candidates regarding serving as Secretary of Transportation.
"All that's left to be ironed out is an exit strategy for when I have
reorganized and outsourced DOT / FAA functions, and burnished its image,"
exalted Wolfee, with a certain glitter in his eyes.
###
BTC's mission is to raise awareness of commercial air transportation
competition issues and to support initiatives to increase competition levels.
UA-US merger analysis can be found at www.AirMerger.com. BTC conducted an
Internet Air Competition Summit in Washington, DC on September 28, 2000.
Summit proceedings can be listened to at www.GlobalBTC.com.
spoof in the spirit of encouraging public policy debate regarding the
proposed United Airlines-US Airways merger. May be reprinted without
permission.
-------------------------------------------------
PRESS STATEMENT
DOJ Approves UA-US Merger
Untied-US Airlines Good For Consumers Says BTC
Washington, DC-November 1, 2004-The Business Travel Coalition (BTC) today
applauded a decision reached by the U.S. DOJ to allow the consummation of
Untied Air's (UA) proposal to merge with US Airlines (US). On the steps of
the Justice Department earlier today, during a joint Press Conference with UA
and US, BTC Chairman Kevin P. Mitchell summed up the palpable euphoria in the
air when he said, "What a difference four years can make," alluding of course
to UA's failed attempt to purchase US in 2000.
BTC identified just three of the industry changes that enabled its support:
1. All U.S. Presidential candidates vowed to sign the EU-U.S. Transatlantic
Air Transport Trade Treaty which will eliminate restrictive bilateral
agreements, level the playing field for new entrants and allow airlines to
reap benefits of true globalization enjoyed by other industries.
2. The U.S. Congress repealed laws restricting foreign ownership of U.S.
airlines ushering in a new era of domestic competition. Richard Brandson is
among the more that seven well-financed foreign entrepreneurs applying to DOT
for certification.
3. As a result of DOT implementing Competition Guidelines in June 2001,
domestic start-ups reached record levels in 2002 as investors poured money
into the sector with renewed confidence that DOT will no longer allow
exclusionary practices.
Speaking to hundreds of reporters, a deliriously jubilant UA Chairman, Jamie
Goodwins, gushed that his legacy was finally within reach. Goodwins,
straying from prepared remarks mused, "I know we said in 2000 that our best
customers were demanding the merger, but it never dawned on us to actually
ask them, or seek their support. Rest assured, UA will continue in this
tradition of innovation!"
In relaxed banter with reporters, Goodwins continued somewhat wistfully,
"Boy, if we only had customer support in 2000, I would have been king of the
world by now. Just consider the supportive environment in 2000, and how
clever our timing was. DOJ was distracted by a lawsuit to undo
Continental-Northwest. Congress was chasing airport congestion issues.
Travel agencies were obsessing over Orbitz, and business fares were so
outrageously high, corporations were just numbed into paralysis."
Projecting a more regal image, outgoing US chief Steve Wolfee III stated, "I
personally thought CDAir was a pretty brilliant play. To this day I believe
that when you reduce competition, everybody wins. That much-maligned
University study UA paid for proved that there was an impressive $14 million
in consumer benefits from the merger. It was not too long ago, that $14
million would have been considered an acceptable exit package for someone
like me. But I must say, I remain bewildered by criticism that the
University study did not calculate costs to consumers of business fare
increases and lost or degraded service to mid-size communities."
In response to pointed questions from USTODAY reporter David Fieldings,
Wolfee lamented, "After four years of reflection, I still fail to see the
inconsistency of UA suggesting that US was unfit to survive as an ongoing
concern while offering a 100% stock premium. It's frustrating that some
people still do not understand airline economics."
In an obvious shift in tone, and sounding a tad defensive, Goodwins jumped
in, "We argued all along in 2000 that the DOJ decision should be apolitical
and based solely on straightforward HHI market concentration analysis. We
only funded University and Think Tank studies, took out full page
advertisements, hired 14 public relations firms, 6 law firms, 27 consultants,
3 former DOT Secretaries--and tried to kill the Senate Commerce Committee
Resolution--to make sure everybody understood this point."
The Press Conference ended on a lighter note, however, with Wolfee responding
to a question he had been secretly waiting for. With a bounce in his voice,
Wolfee acknowledged he has been in serious talks with front running
Presidential candidates regarding serving as Secretary of Transportation.
"All that's left to be ironed out is an exit strategy for when I have
reorganized and outsourced DOT / FAA functions, and burnished its image,"
exalted Wolfee, with a certain glitter in his eyes.
###
BTC's mission is to raise awareness of commercial air transportation
competition issues and to support initiatives to increase competition levels.
UA-US merger analysis can be found at www.AirMerger.com. BTC conducted an
Internet Air Competition Summit in Washington, DC on September 28, 2000.
Summit proceedings can be listened to at www.GlobalBTC.com.
