Anyone know a good contact name at the Antitrust Division? My letter would seem too impersonal and lack some ooomph if I merely addressed it "Dear Sir or Madam".
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Why send the letter to Congressional reps? As you know, Congress doesn't actually have a say in approving or disapproving mergers.
Actually, Congress does seem to have some power. There's a Subcomittee on Antitrust, Competition Policy & Consumer Rights which would (or is?) certainly scrutinize the merger. Senator Schumer is one member, the chairman is actually Senator Herb Kohl (D-WI), representing a state that gets quite a bit of service from NWA.
Actually, Congress does seem to have some power. There's a Subcomittee on Antitrust, Competition Policy & Consumer Rights which would (or is?) certainly scrutinize the merger. Senator Schumer is one member, the chairman is actually Senator Herb Kohl (D-WI), representing a state that gets quite a bit of service from NWA.
No. They have no other power other than to compel executives and regulators to testify before the committees. They get no say in the actual approval. Nor do they hold a large enough majority in either body to pass any meaningful laws that would prevent the merger. Lot's of bark, no bite.
They get no say in the actual approval. Nor do they hold a large enough majority in either body to pass any meaningful laws that would prevent the merger.
So the only federal authority with any possibility of blocking the merger is the DOJ Antitrust Division?
p.s. are you trying to dissuade people from writing into the Congressional subcommittee or to their Representatives with their Merger opinions? Or are you just trying to lower expectations?
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Originally Posted by motytrah
No. They have no other power other than to compel executives and regulators to testify before the committees. They get no say in the actual approval. Nor do they hold a large enough majority in either body to pass any meaningful laws that would prevent the merger. Lot's of bark, no bite.
Well, remember that Congress does have the power of the purse - they can always cut DOJ's funding.
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Originally Posted by DJMeatBall
So the only federal authority with any possibility of blocking the merger is the DOJ Antitrust Division?
Pretty much.
And frankly, I would like to keep it that way. They have the technical expertise to assess the impact of this merger on competition, which is the only thing that should matter. The decision shouldn't be decided based upon some congressman's fears that his hometown might lose a few jobs. And it most certainly shouldn't be decided based upon an FT version of "My toy is better than yours."
So the only federal authority with any possibility of blocking the merger is the DOJ Antitrust Division?
p.s. are you trying to dissuade people from writing into the Congressional subcommittee or to their Representatives with their Merger opinions? Or are you just trying to lower expectations?
European regulators have more power over the merger than the US congress. I have no opinion on if people should or should not write them. But I am a stickler about civics.
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Originally Posted by hazelrah
Well, remember that Congress does have the power of the purse - they can always cut DOJ's funding.
They already passed the 08 budget bill in 2007. I would expect most of the people who'll make the decision about the merger will be out of the job anyway after the election. There's not much you can do to the political appointees at the DOJ right now unless you can prove they are breaking the law.
And frankly, I would like to keep it that way. They have the technical expertise to assess the impact of this merger on competition, which is the only thing that should matter. The decision shouldn't be decided based upon some congressman's fears that his hometown might lose a few jobs. And it most certainly shouldn't be decided based upon an FT version of "My toy is better than yours."
While the research and recommendations is done by non-partisan employees of the DOJ, the final call is made by political appointees. The track record so far is that the recommendations of non-partisan employees is superfluous to the decision making process. The merger will be approved with some token merger requirements from the DOJ.
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Originally Posted by Carolinian
There are a number of things Congress could do in response to these takeover / mergers which all smack of a ''do something even if it is wrong'' mentality by airline execs along with greed for golden parachutes.
Unfortunately, all of the remedies suggested so far seem to equally smack of a "do something even if it is wrong" mentaility, as well. I know that I have no interest in any sort of consumer bill of rights - as an educated consumer, I can make my own decisions and most certainly don't want somebody like Chuck Schumer making them for me.
If you want to guarantee that narrow, short-term interests are served, then leaving it up to elected officials is most certainly the way to go.
I mean, honestly, what is it that you would like to accomplish with your opposition? And how does this fit into any sort of larger vision that you think will ensure a stable, competitive, financially viable airline industry? Why is the domestic industry competitive with 6 legacies + WN + B6 + sundry others, but suddenly uncompetitive with only 4 legacies? Shouldn't the almost complete lack of overlap in their regional strengths count for anything?
These are the questions that should be asked and answered. Since I don't trust our elected officials to show such reason and thoughtfullness, I beseach my fellow FTers to show some restraint. I'm not saying that one has to like the merger, but not wanting it does not mean that it shouldn't be approved.
And if you are merely trying to "save NW" (or DL or whomever) think long and hard about what you can reasonably accomplish. This is an industry that hasn't made real money in close to a decade. The situation looks worse every day. None of the carriers have much cash or credit, and the collapse of EOS and the decline in share prices of all the airlines suggests that the investment community may be getting skittish about another wave of cash to prop up the industry. I'm not crazy about having fewer options, but I think it telling that at least 4 of the 6 legacies see this as the best move available to them.
I mean, honestly, what is it that you would like to accomplish with your opposition?... And if you are merely trying to "save NW" (or DL or whomever) think long and hard about what you can reasonably accomplish. This is an industry that hasn't made real money in close to a decade. The situation looks worse every day.
I agree completely, and I think this thread demonstrates why it is so difficult for elite frequent flyers to be a potent political force.
We are looking at the impact of mergers either in emotional ("I love my red tails") or personal-impact ("SkyMiles is worse for me than WorldPerks") terms.
The elite FF'ers point of view is that of a tiny sliver of the flying public, and sometimes fixated on factors that do not register at all through a macro-economic lens: upgrade policies, glass versus plastic, redemption success, etc. In its own way, this point of view is not so different (and macro-irrelevant) from those of the kids on airliners.net, who evaluate mergers in terms of how attractive the resulting livery will look.
In point of fact commercial aviation in the US is teetering on the thin edge of total implosion, and Aloha, ATA, EOS, etc. were simply the first canaries in the coal mine to topple. UA actually going out of business one day soon, Braniff-style, is perfectly thinkable.
NW has delivered a mostly rotten product in recent years, but the management knows what's going on -- has seen it coming for a long time -- and positioned the airline as an acquisition target, pure and simple. The NW proposition is hardly marketed, barely branded, and unhappily staffed, but in this strategy none of that matters. (Management has known for a long time that the Northwest brand would go away anyway, so there was no point in investing in it. They even re-schemed the airplanes in a mostly naked, exposed-silver style that would be quick and easy to repaint for a new operator.) What matters is Asia, a couple of fortress hubs, some high-yield captive routes in the midwest, and a smattering of useful aircraft (e.g. the A330s). That's what NW boils down to after all these decades... in a harsh but clear-eyed assessment.
It really is merge-or-die time, and we are seeing the 8th or 9th inning of a game that started back around 9/11. In this crisis atmosphere, I do not think our joint disappointment in lost personal benefits, fewer routing choices, higher prices, even less robust FF programs, etc., are, to paraphrase Rick Blaine, going to amount to a hill of beans in this crazy world.
I don't mean to be cynical but I don't think keeping the few of us comfy and satisified is job one right now for airline managers or their regulators.
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Owing to heightened security you must comply with any crazy fake "regulation" we make up. Thank you sir.
No. They have no other power other than to compel executives and regulators to testify before the committees. They get no say in the actual approval. Nor do they hold a large enough majority in either body to pass any meaningful laws that would prevent the merger. Lot's of bark, no bite.
I agree. The AD lawyers and analysts will evaluate the proposed merger and, in the end, the Attorney General will have the final say (and I really doubt it gets that high up the ladder).
As with you, I post this not to dissuade anyone from writing to whomever they please, but as a civics stickler, I feel compelled to remind people that Congress writes laws (as in the Sherman Act) and the President and his appointees get to administer and enforce the laws. Simply put, the 435 Representatives in the House and the 100 Senators can bluster all they want at hearings of their all-powerful committees, but they have no power to approve or disapprove of this merger.
And I seem to remember some arcane, obscure Constitutional provisions that might hinder any attempt by Congress to pass a law NOW that attempts to prevent a merger between two airlines. Especially now that the merger has already been announced.
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Originally Posted by BearX220
management knows what's going on -- has seen it coming for a long time -- and positioned the airline as an acquisition target, pure and simple. The NW proposition is hardly marketed, barely branded, and unhappily staffed, but in this strategy none of that matters. (Management has known for a long time that the Northwest brand would go away anyway, so there was no point in investing in it. They even re-schemed the airplanes in a mostly naked, exposed-silver style that would be quick and easy to repaint for a new operator.) What matters is Asia, a couple of fortress hubs, some high-yield captive routes in the midwest, and a smattering of useful aircraft (e.g. the A330s). That's what NW boils down to after all these decades... in a harsh but clear-eyed assessment.
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Originally Posted by motytrah
No. They have no other power other than to compel executives and regulators to testify before the committees. They get no say in the actual approval. Nor do they hold a large enough majority in either body to pass any meaningful laws that would prevent the merger. Lot's of bark, no bite.
I agree with you that the merger will be approved with only a smattering of minor concessions. I also agree with you that in this particular case, because of the the timing, congress has little by way of funding persuasion.
However, under different circumstances, i.e. no lame duck, a congressional leadership the same party as the executive, congress would be expected to wield considerable influence. I seem to recall that Delta/Usairways was Dead on Arrival.
However, under different circumstances, i.e. no lame duck, a congressional leadership the same party as the executive, congress would be expected to wield considerable influence. I seem to recall that Delta/Usairways was Dead on Arrival.
Actually, it has more to do with a Bush Admin DOJ that has "never met a merger it didn't like". The DL/US deal never got to the DOJ - Parker was simply outmanuvered by Grinstein's full-on assault through employees, public officials, customers, etc., that it put enough doubt and fear in the creditors' minds that they turned down US's offer. The DOJ/DOT never got to provide input on whether the deal would have been anti-competitive; in the only indication (and it was a very very tepid indication) of whether the deal would have gone through, Andrew Steinberg, then-DOT undersecretary, testified in Congress that mergers could be good for the industry and was seemingly the only one on Parker's side during the Congressional hearing.
I've resigned myself to the fact that consolidation is inevitable. Sure, I could expend a whole lot of energy stressing over it and writing letters- but what would the end result be?
The glory days of flying are over. Talking recently with friends that are with DL and NW. They agreed that flying as we know it domestically is going to change. The cariers can't afford to keep fares down and give anything away. The seats in front can be sold or converted to coach to bring in more revenue. Meals can be sold, as can beverages.
I asked them what they thought woud happen if the merger fails. My friend from NW said people there expect it would return to business as usual (i.e. losing money)until they needed to start dumping assets to remain afloat- then at some point liquidation (with lots of exec bonuses between business as usual and liquidation).
They both agreed that change is coming- merger or no merger. I'm just glad that my forced travel days are nearing the end and I got to enjoy the ride while it lasted.
Last edited by frankc98376; Apr 30, 08 at 2:57 pm.
