WASHINGTON, June 29 (Reuters) - The U.S. Justice Department opposes broad antitrust immunity for Continental Airlines Inc (CAL.N) to join UAL Corp's (UAUA.O) United Airlines and other members of the Star alliance, documents showed.
In a filing late on Friday with the Transportation Department, antitrust enforcers said approval is likely to harm competition on some international routes, including flights between U.S. cities and Canada and China...
Last edited by FlyinHawaiian; Jun 29, 09 at 12:31 pm..
Reason: FT Policy does not allow cutting and pasting of full news articles, only excerpts. Thanks
well of course there's little in the way of consumer benefit -- that is the point of consolidation. The benefit is less of a roller-coaster ride for the airlines and their employees, in that unnecessary duplicate routes, inventory can be removed from supply.
well of course there's little in the way of consumer benefit -- that is the point of consolidation. The benefit is less of a roller-coaster ride for the airlines and their employees, in that unnecessary duplicate routes, inventory can be removed from supply.
Does the DOJ ever see it that way?
Unbelievable... There is an obvious oversupply of capacity and carriers are all hemorrhaging $$$. Consolidation is unavoidable... A consumer benefit might be that their future tickets are honored rather than lost to bankruptcy?
Yes, see the DL/NW merger + the SkyTeam TATL joint venture with anti-trust immunity.
Different DoJ in that case.
The global ATI was rejected but it appears that the TATL ATI will be granted. Not a horrible result for the carriers though not as great as they wanted. They aimed high in the initial request and will "settle" for what they really needed anyways.
I thought that it was only a TATL agreement that was being completed - involving UA, CO, LH and AC (which is besically just adding CO to the existing UA, LH & AC TATL agreement). Is this different. Am I confused? Perhaps both?
Also, as far as I understand, while the DOJ looked and has their opinion, I am under the impression that the approval decision lies squarely with Department of Transportation? Am I incorrect here, as well?
The global ATI was rejected but it appears that the TATL ATI will be granted. Not a horrible result for the carriers though not as great as they wanted. They aimed high in the initial request and will "settle" for what they really needed anyways.
Were you referring to NW/DL with ST or CO with *A?
United Airlines on Friday sold $175 million in senior notes
backed by its U.S. aircraft spare parts. The notes were priced
at 90 cents on the dollar to earn a yield of 17 percent,
according to Thomson Reuters data.
"The pricing indicates lack of investor interest and
management desperation," CreditSights analysts Roger King,
Aidas Baublys and Brian Studioso said in a report on Monday.
So when does lack of confidence look for new leadership, with new ideas? Tough times for most airlines, but UA seems to be doing worse that it's peers. Maybe a new leadership team would get some confidence. It could not hurt.
Longest chap 11 in airline industry history, failed US buyout, failed merger attempt with CO, DoJ against domestic cooperation, UA shed most of it's debt in court and still is sinking faster that those that did not shed their debt in court, and labor unhappy at the apathy by the front office for any of their sacrifices at a time that ALL contracts are being renegotiated.
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NOTE - that DOT can and will likely disagree with the DOJ assessment and I believe can duly note their concern but still proceed forward with original plan. We are embarking on an internal bureaucratic food fight between the two agencies.
If I were counsel for either UA or CO in this case, I'd be starting a draft document right now that would use the phrases "arbitrary and capricious" and "discriminatory" many times over.
This administration is beholden to the major unions. Pressure was brought to bear and the people running the DOJ now, as opposed to prior to January 2009, said "OK! OK! I'm jumping! Just tell me how high to go while I'm on my way up."
NOTE - that DOT can and will likely disagree with the DOJ assessment and I believe can duly note their concern but still proceed forward with original plan. We are embarking on an internal bureaucratic food fight between the two agencies.
"will likely?" I doubt it.
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Quote:
Originally Posted by CaptainBilly
This administration is beholden to the major unions.
And the previous administration was (even more) beholden to corporations. That's the way a democratic republic works - it goes one way for a while, then it goes the other way. But we should probably leave the PoliSci lecture for OMNI...
__________________ Final post: 26 December 2011 @ 20:00 PST. Good night and good luck.
