From the I Told You So Department: Today the Justice Department announced it had reached a deal whereby it would drop its opposition to the proposed American/US Air merger. And, as I predicted, the settlement involves some horsetrading of valuable slots -- and a lot of them at Reagan National Airport. What this means -- other than that US Air executives can resume their house shopping trips to Dallas -- is that the deal will now go through and the two airlines will soon become one. No trial on November 25th, no lengthy protracted legal battle, and now the real questions remain: The impact on many airports, US Air and American employees, and, last but hopefully not least, travelers. The agreement will call for the new airline to give up 52 valuable slots at Reagan National in, plus 17 slots in LaGuardia and two gates at Dallas Love Field, Boston’s Logan Airport, Chicago’s O’Hare, Miami and Los Angeles. But what remains to be determined is what side agreements, if any, the mayors of a number of cities (and some state attorneys general) may have forced to guarantee continued air service (at current levels) to their cities. In the short term, there will be no apparent changes, But after January 1, watch this space. Talk to the mayors of cities like St. Louis, Cincinnati, Memphis to see how they enjoyed post merger life after American absorbed TWA and Delta merged with northwest... Fasten your seat belts. mergers are often bumpy rides for the companies themselves, as they attempt to integrate systems and work forces and policies...but its also a bumpy ride for the cities they serve...more news soon. petergreenberg/2013/11/12/doj-okays-us-airamerican-airlines-merger-happens-next/
Posted on: Tue, 12 Nov 2013 20:02:21 +0000