The new American Airlines — the product of last year’s controversial merger between American and US Airways — may only be a few months old, but that hasn’t stopped travelers from forming opinions about the world’s largest airline.
I said it during the Senate Aviation Subcommittee hearings on Capitol Hill and now the "new" America Airlines (AA) is proving me correct. The AA/US merger what's-down-is-up and what's-up is-down claim that cutting the number of network airlines from four to three would improve competition is now clearly seen as cynical bald-face misdirection. AA's new line-up service from LaGuardia makes that clear as a bell.
Now that the bankruptcy judge has approved the merger of American Airlines and US Airways, the last hurdle is gone and shortly the two airlines will merge. Ned Levi examines who the winners and losers are as the merger is completed.
Just as when the Department of Justice (DOJ) filed its complaint against the America Airlines/US Airways merger, the announcement of a settlement surprised many in the aviation world. Lawyers, salivating at seeing an antitrust case go to trial, were disappointed and consumers looking at a dramatic cutback in airline competition on overlapping connecting routes felt thwarted. But, upon closer examination, the DOJ settlement may develop into a competitive benefit for consumers.
What we’re reading: Airlines comment on AA/US merger, LAX & ORD predicted to be busiest on Thanksgiving, Freedom Tower is America’s tallest
DL, VX, WN have their say about the merger, LAX, ORD predicted to be busiest this Thanskgiving, Willis Tower no longer tallest building in US
The Justice Department has reached a settlement with American Airlines and US Airways regarding the merger of their airlines. The remedies extracted by the Department of Justice (DOJ) are stronger than any previously demanded of merging airlines and should help ameliorate the anticompetitive thrust of this merger. Unfortunately, consumers, competition and the free market —the entire reason for antitrust rules and regulations — took a hit.
What we’re reading: Mayors want merger to go through, Americana afloat, Unusual wedding venues in Vegas
Mayors want merger to go through, Americana afloat, Unusual wedding venues in Vegas
Previous merger cases are not comparable to this giant merger. To begin with, this is the biggest airline merger ever attempted and each of the prior mergers changed the aviation landscape.
What we’re reading: Parker confident on merger, furloughs may violate treaty, UA to open LA 787 base
Parker confident merger will go through, furloughs may violate treaty, United to open 787 base in Los Angeles
In an astounding letter, Democrats from Florida wrote to Florida Attorney General Pam Bondi asking her to withdraw support for the DOJ's lawsuit against the merger of American Airlines and US Airways. Reps. Alcee Hastings, Debbie Wasserman Schultz, Ted Deutch, Frederica Wilson, Lois Frankel, Joe Garcia and Patrick Murphy all went on the record as siding with the airline and its employees and against consumers who will be faced with severe loss of competition.