The US/DL LGA slot swap [Master Thread]
Jul 26, 2011, 8:28 pm
#196
Join Date: Mar 2010
Programs: Amtrak S+, Kimpton IC
Posts: 298
Anyone else see the bigger picture here? By doing this deal, US is able to divest itself of the largest overlap with AA... Does this position US as a better bride for AA?
Jul 26, 2011, 10:24 pm
#197
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Posts: 4,549
Doubt it. Route overlap is only one of the many obstacles to such a tie-up, and many believe the other obstacles are harder. Like each carrier's labor issues.
Jul 27, 2011, 7:19 am
#198
Join Date: Mar 2010
Programs: Amtrak S+, Kimpton IC
Posts: 298
I know US hasn't had the best history with labor issues as evidenced by US West and US East, but if it was instead the target rather than the pursant, don't you think there stands a chance? Especially in a marketplace where you have DL/NW, WN/FL, CO/UN... that leaves US and less so AA at a bigger disadvantage route wise... I would think US's presence in the Mid-Atlantic, SE, and SW would serve very attractive for an AA.
Jul 27, 2011, 7:31 am
#199
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I know US hasn't had the best history with labor issues as evidenced by US West and US East, but if it was instead the target rather than the pursant, don't you think there stands a chance? Especially in a marketplace where you have DL/NW, WN/FL, CO/UN... that leaves US and less so AA at a bigger disadvantage route wise... I would think US's presence in the Mid-Atlantic, SE, and SW would serve very attractive for an AA.
Also, AA has a cost problem since they never went through bankruptcy.
Just two of the issues...
Jul 27, 2011, 8:47 am
#200
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In my opinion, US would need to buy AA for any shot at this working. AA management seems unwilling to make tough decisions when they need to, US mgmt will - however unpopular the changes are.
Also, AA has a cost problem since they never went through bankruptcy.
Just two of the issues...
Also, AA has a cost problem since they never went through bankruptcy.
Just two of the issues...
Oct 12, 2011, 8:48 am
#201
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Oct 12, 2011, 9:00 am
#202
Join Date: Apr 2006
Location: High Point, NC
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Posts: 9,171
The DOJ is still investigating the DCA portion of the deal and could still throw a monkey wrench into it.
Jim
Jim
Oct 12, 2011, 12:11 pm
#203
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Location: DCA
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Oct 12, 2011, 12:30 pm
#204
Join Date: Apr 2006
Location: High Point, NC
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Posts: 9,171
Justice Department Statement on US Airways/Delta Airlines Acquisition of Slots at Washington's Reagan National and New York's Laguardia Airports
Department Continues to Investigate Slot Acquisition at National Airport and Will Not Continue its Investigation at LaGuardia Airport
WASHINGTON – The Department of Justice issued the following statement today after the Department of Transportation (DOT) issued its order involving US Airways’ and Delta Airlines’ acquisition of slots at Washington’s Ronald Reagan National Airport and New York’s LaGuardia Airport:
“The Antitrust Division has been conducting an investigation of US Airways’ acquisition of Delta Airlines’ slots at Washington’s Ronald Reagan National Airport to determine the transaction’s impact on competition and traveling consumers. The division will continue its investigation with a focus on the increase in US Airways’ share and use of slots at Reagan National and the resulting decrease in Delta’s share of slots at this slot-constrained airport, at which passengers pay among the highest fares in the country. The division will not continue to investigate the acquisition of slots at New York’s LaGuardia Airport because the division has concluded that acquisition does not raise competitive concerns.
“While the Antitrust Division works closely with DOT on airline issues, the two agencies act under substantially different statutory and regulatory frameworks. The role of the Antitrust Division is to protect competition and to ensure that companies do not raise prices to harm consumers in violation of the antitrust laws. Under the antitrust laws, the division can and will take appropriate action, if warranted, at the conclusion of its investigation.”
Department Continues to Investigate Slot Acquisition at National Airport and Will Not Continue its Investigation at LaGuardia Airport
WASHINGTON – The Department of Justice issued the following statement today after the Department of Transportation (DOT) issued its order involving US Airways’ and Delta Airlines’ acquisition of slots at Washington’s Ronald Reagan National Airport and New York’s LaGuardia Airport:
“The Antitrust Division has been conducting an investigation of US Airways’ acquisition of Delta Airlines’ slots at Washington’s Ronald Reagan National Airport to determine the transaction’s impact on competition and traveling consumers. The division will continue its investigation with a focus on the increase in US Airways’ share and use of slots at Reagan National and the resulting decrease in Delta’s share of slots at this slot-constrained airport, at which passengers pay among the highest fares in the country. The division will not continue to investigate the acquisition of slots at New York’s LaGuardia Airport because the division has concluded that acquisition does not raise competitive concerns.
“While the Antitrust Division works closely with DOT on airline issues, the two agencies act under substantially different statutory and regulatory frameworks. The role of the Antitrust Division is to protect competition and to ensure that companies do not raise prices to harm consumers in violation of the antitrust laws. Under the antitrust laws, the division can and will take appropriate action, if warranted, at the conclusion of its investigation.”
Oct 13, 2011, 7:10 am
#205
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Oct 13, 2011, 7:22 am
#206
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Oct 13, 2011, 10:14 am
#207
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Nov 23, 2011, 3:30 pm
#208
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Location: Washington, DC
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FAA is currently announcing the results of the DCA and LGA slot bidding/auctions. WestJet is said to have announced that they've won "some" slots at LGA while B6 is rumored (but not confirmed) to have won slots at both. Curious to see the official announcement.
Dec 2, 2011, 12:28 pm
#209
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Dec 2, 2011, 1:15 pm
#210
Join Date: May 2004
Location: DCA ZWU
Programs: AGR WOH
Posts: 1,785
More details
JetBlue Airways Corp. is paying $40 million for eight slot pairs at Reagan and $32 million for eight pairs at LaGuardia, the Transportation Department said. Canadian discounter WestJet announced on Nov. 23 that it will pay $17.6 million for eight slots at LaGuardia.
The airlines have not yet said where planes using the new slots will fly to or from.
The Transportation Department said JetBlue outbid WestJet for the other LaGuardia slots, but it said bidding rules prevented one carrier from winning all three auctions.
Other bidders were Allegiant Air, Frontier Airlines, Sun Country Airlines, Southwest Airlines Co. and Spirit Airlines Inc. Allegiant is a unit of Allegiant Travel Co., and Frontier is run by Republic Airways Holdings Inc.
The airlines have not yet said where planes using the new slots will fly to or from.
The Transportation Department said JetBlue outbid WestJet for the other LaGuardia slots, but it said bidding rules prevented one carrier from winning all three auctions.
Other bidders were Allegiant Air, Frontier Airlines, Sun Country Airlines, Southwest Airlines Co. and Spirit Airlines Inc. Allegiant is a unit of Allegiant Travel Co., and Frontier is run by Republic Airways Holdings Inc.