FlyerTalk Forums - View Single Post - AA - US Merger Agreement / Announcement / DOJ Action Discussion (consolidated)
Old Feb 13, 2013, 3:32 pm
  #42  
grahampros
 
Join Date: Dec 2006
Location: ORD
Programs: AA EXP,2MM, DL Gold,Starwood PLT
Posts: 3,876
Originally Posted by MetricFlyer
Is there any chance that the US-AA merger will be denied by the USA or EU?

DL-NW and UA-CO were approved... look at how little that benefited the
public. They got away with it because there were still AA, US, plus other
airlines around. If US-AA merger is approved, it will create the largest
carrier and stifle whatever competition is left in the airline industry.
Few points. No little chance it wont be approved. Very little overlap in the network and that would be the only real reason for objections. There is little argument to be made it reduces competition. There is a much stronger argument to be made it actually increases competition with a carrier now on par in size with DL and UA.

2nd point, is there is and will remain plenty of competition in the industry. You will have 4 very large carriers ( which i include SW in this now since they are now essentially a legacy carrier) and the likes of Spirit etc if you're purely price driven.

3rd point,, more competition when it's reckless and bleeding red ink in the end doesn't really benefit consumers. It doesn't benefit the consumer when it's unsustainable and leads to bare bones service since their is no money to invest in a decent product/network etc.
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