If you can read this, either the style sheet didn't load or you have an older browser that doesn't support style sheets. Try clearing your browser cache and refreshing the page.

(Frequent Biz Traveller)   DOJ: "Okay USAir, you can buy American." Civil lawsuit: "Don't don your monocle yet, Monopoly Man"   (frequentbusinesstraveler.com) divider line 24
    More: Interesting, Americans, AMR Corp., Sherman Antitrust, U.S. Department of Justice, US Airways, American Airlines  
•       •       •

1377 clicks; posted to Business » on 18 Nov 2013 at 7:36 AM (33 weeks ago)   |  Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



24 Comments   (+0 »)
   
View Voting Results: Smartest and Funniest
 
2013-11-18 07:59:20 AM
The suit alleges that the merger would be a violation of the Clayton Antitrust Act and that American Airlines CEO Tom Horton and US Airways CEO Doug Parker met secretly to discuss fare increases, citing its contention that "prices were increased by $4 to $10 on roundtrip domestic flights" by American and US Airways

Look, that's nice and all, but I can have that amount of fluctuation when I gas up my Prius every other week.
 
2013-11-18 09:02:56 AM
OMG, if Airways and AA merges there will be no competition!

Just look at this monopolized industry:

Delta (merged with Northwest)
United (merged with Continental)
Southwest (merged with AirTran)
Alaska
Jetblue
Spirit
Frontier
Allegient
etc.

Life, liberty, and the pursuit of $100 transcon fares for all!!!1!1
 
2013-11-18 09:03:16 AM
It's not the amount; the price increase could be 1 cent.  Picking up the phone and calling your competitor to discuss prices is collusion, and that's illegal.  That's the allegation, anyway.

Mind, you companies have been known to collude to decrease prices.  That's still illegal, as the goal there is to undercut start-up competition in the short-term.
 
2013-11-18 09:06:26 AM

CoolHandLucas: Just look at this monopolized industry:


It's amazing how Americans have zero sense of the concept of a regional monopoly.  If I own all the business in a key state (California or Texas, for example), I could care fark-all if there were a hundred competitors in a smaller market.  American already has a stranglehold on DFW and USAir has sizeable portion of what's left.  I personally couldn't care less what happens to that hellhole if not for the fact that American wants to funnel every damn east-west connection through there (but the direct flights to there are laughably insane).
 
2013-11-18 09:17:14 AM

CoolHandLucas: OMG, if Airways and AA merges there will be no competition!

Just look at this monopolized industry:

Delta (merged with Northwest)
United (merged with Continental)
Southwest (merged with AirTran)
Alaska
Jetblue
Spirit
Frontier
Allegient
etc.

Life, liberty, and the pursuit of $100 transcon fares for all!!!1!1


You know how I know you have NO IDEA how the airline industry works?
 
2013-11-18 09:19:03 AM

dragonchild: It's amazing how Americans have zero sense of the concept of a regional monopoly.


I used to fly in the US Airways Express system - I understand completely the concept of a regional monopoly as it relates to air carrier service.

The issue isn't "a hundred competitors in a smaller market" - the actual issue is lack of competition in smaller markets...which doesn't currently exist anyway with separate airlines.

There are multiple competitors in large markets like Airways' hubs in PHL/LGA/DCA or AA's hubs in JFK, ORD, DFW and MIA...to say nothing of secondary airports in those areas (Southwest at MDW/FLL/DAL/ISP).

Hub and spoke and yield management, how does it work?
 
2013-11-18 09:20:11 AM

Marcus Aurelius: You know how I know you have NO IDEA how the airline industry works?


No, please tell me.

Its possible I missed something as a ground service agent and regional airline pilot.
 
2013-11-18 09:24:36 AM

CoolHandLucas: Marcus Aurelius: You know how I know you have NO IDEA how the airline industry works?

No, please tell me.

Its possible I missed something as a ground service agent and regional airline pilot.


When Southwest Airlines came to PHL, USAir had to drop their fares on competing routes significantly.

If PHL already had "competition", then how could the arrival of Southwest cause these fare reductions?
 
2013-11-18 09:33:00 AM

dragonchild: CoolHandLucas: Just look at this monopolized industry:

It's amazing how Americans have zero sense of the concept of a regional monopoly.  If I own all the business in a key state (California or Texas, for example), I could care fark-all if there were a hundred competitors in a smaller market.  American already has a stranglehold on DFW and USAir has sizeable portion of what's left.  I personally couldn't care less what happens to that hellhole if not for the fact that American wants to funnel every damn east-west connection through there (but the direct flights to there are laughably insane).


Oh, I understand perfectly that USAir is the sole reason Charlotte is the most expensive city to fly in and out of. I can't stand how our city/county government kisses their ass year after year. I have worked at half a dozen companies in Charlotte that have official policies that require employes to check ticket prices form other airports like GSO,RDU and GSP. Often times I have had to drive 4 hours to freaking Raleigh just to catch a flight back to Charlotte so I can then get on a flight to where I really want to go. Sure the price is typically %30 of what I would have paid if I had taken a direct flight. But great god of all things small and furry that 4 hour drive back home after a business trip is exhausting.
 
2013-11-18 09:59:55 AM

CoolHandLucas: Its possible I missed something as a ground service agent and regional airline pilot.


I'll go out on a limb and assume a course in economics was not part of the required training.
 
2013-11-18 10:51:41 AM
Hoping the merger (it's going to happen) doesn't bring AA down to USAir's level of shiate quality across the board. Delta is atrocious, but is still miles better than USAir.
 
2013-11-18 11:41:23 AM
but my Government told me this merger is good for competition.

Apparently with a straight face too.
 
2013-11-18 11:44:22 AM

InfrasonicTom: but my Government told me this merger is good for competition.

Apparently with a straight face too.


Actually the gov't held up the merger until they gave up a bunch of airport slots (primarily at, shocking, DCA)
 
2013-11-18 11:45:27 AM

InfrasonicTom: but my Government told me this merger is good for competition.

Apparently with a straight face too.


And will result in no hub closures or job losses. Just ask STL, MEM, CVG....
But that totally won't happen to PHX, PHL or CLT. Promise. Pinky swear.

I can't wait to see the fireworks when they go from two feuding pilot groups (US Air East and West) to three when the American pilots are added to the mix. Parker has promised the American unions that things would be great, and I'm sure he can be trusted to watch out for the employees. Right?
 
2013-11-18 11:49:07 AM

stpauler: The suit alleges that the merger would be a violation of the Clayton Antitrust Act and that American Airlines CEO Tom Horton and US Airways CEO Doug Parker met secretly to discuss fare increases, citing its contention that "prices were increased by $4 to $10 on roundtrip domestic flights" by American and US Airways

Look, that's nice and all, but I can have that amount of fluctuation when I gas up my Prius every other week.


You spending an extra $10 a week is not even chump change.

US Air getting rewarded with extorting an extra $10 from that guy and that guy and that guy and that guy (and so on)? Money Racket.
 
2013-11-18 11:50:44 AM

CoolHandLucas: Marcus Aurelius: You know how I know you have NO IDEA how the airline industry works?

No, please tell me.

Its possible I missed something as a ground service agent and regional airline pilot.


img.pandawhale.com
 
2013-11-18 11:54:11 AM

digistil: Hoping the merger (it's going to happen) doesn't bring AA down to USAir's level of shiate quality across the board. Delta is atrocious, but is still miles better than USAir.


'Friad it will, bruh. America West was an OK sort of airline, but when it assumed the US Air title, it instantly went to sh*t. That brand name is the Best Buy of airlines.
 
2013-11-18 11:56:35 AM

TV's Vinnie: 'Friad it will, bruh. America West was an OK sort of airline, but when it assumed the US Air title, it instantly went to sh*t. That brand name is the Best Buy of airlines.


..probably why they're ditching the US Air name and keeping American
 
2013-11-18 12:10:09 PM
Monopolies are good for Business and good for America.

snicker.
 
2013-11-18 12:10:45 PM

CoolHandLucas: OMG, if Airways and AA merges there will be no competition!

Just look at this monopolized industry:

Delta (merged with Northwest)
United (merged with Continental)
Southwest (merged with AirTran)
Alaska
Jetblue
Spirit
Frontier
Allegient
etc.

Life, liberty, and the pursuit of $100 transcon fares for all!!!1!1



you had better leave Freedom alone.   its offensive!
 
2013-11-18 05:08:51 PM

Linux_Yes: CoolHandLucas: OMG, if Airways and AA merges there will be no competition!

Just look at this monopolized industry:

Delta (merged with Northwest)
United (merged with Continental)
Southwest (merged with AirTran)
Alaska
Jetblue
Spirit
Frontier
Allegient
etc.

Life, liberty, and the pursuit of $100 transcon fares for all!!!1!1


you had better leave Freedom alone.   its offensive!


Important to note that foreign owned airlines are prevented from flying passegers between US cities.

True competition would be allowing EasyJet or RyanAir to fly in the US.
 
2013-11-18 07:25:45 PM

mcreadyblue: Linux_Yes: CoolHandLucas: OMG, if Airways and AA merges there will be no competition!

Just look at this monopolized industry:

Delta (merged with Northwest)
United (merged with Continental)
Southwest (merged with AirTran)
Alaska
Jetblue
Spirit
Frontier
Allegient
etc.

Life, liberty, and the pursuit of $100 transcon fares for all!!!1!1


you had better leave Freedom alone.   its offensive!

Important to note that foreign owned airlines are prevented from flying passegers between US cities.

True competition would be allowing EasyJet or RyanAir to fly in the US.


The attempt will be coming fairly soon. I severely doubt it will pass, though.
 
2013-11-18 10:45:48 PM

The Bestest: TV's Vinnie: 'Friad it will, bruh. America West was an OK sort of airline, but when it assumed the US Air title, it instantly went to sh*t. That brand name is the Best Buy of airlines.

..probably why they're ditching the US Air name and keeping American


Yeah, but since US Airways is the buyer that probably means their shiatty ways of management are going with them, because of that I'm avoiding "the new American" like the plague unless I really have to.
 
2013-11-18 10:50:18 PM

iron_city_ap: mcreadyblue: Linux_Yes: CoolHandLucas: OMG, if Airways and AA merges there will be no competition!

Just look at this monopolized industry:

Delta (merged with Northwest)
United (merged with Continental)
Southwest (merged with AirTran)
Alaska
Jetblue
Spirit
Frontier
Allegient
etc.

Life, liberty, and the pursuit of $100 transcon fares for all!!!1!1


you had better leave Freedom alone.   its offensive!

Important to note that foreign owned airlines are prevented from flying passegers between US cities.

True competition would be allowing EasyJet or RyanAir to fly in the US.

The attempt will be coming fairly soon. I severely doubt it will pass, though.


If they really wanted to, they could do what Virgin America did and just partner with an American to satisfy that requirement.

I don't think they will because the US airline market is pretty saturated as it is, Virgin America is struggling because of it.

Besides, Spirit Airlines is basically the US version of RyanAir/EasyJet anyways
 
Displayed 24 of 24 comments

View Voting Results: Smartest and Funniest


This thread is closed to new comments.

Continue Farking
Submit a Link »






Report