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Allow airlines too big to fail, too. What could possibly go wrong? [View All]

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No Elephants Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Feb-13-13 08:52 AM
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Allow airlines too big to fail, too. What could possibly go wrong?
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Concessions on routes likely to get U.S. Air-AMR off the ground

(Reuters) - US Airways and American Airlines are likely to win approval to create the world's biggest carrier, with regulators expected to focus on concessions to preserve competition in Washington, Charlotte, Dallas and other airports where they are dominant, antitrust experts say.

AMR Corp's (AAMRQ.PK) American and US Airways (LCC.N) are in the final stages of negotiating an $11 billion merger and a deal is expected to be announced later this week. If approved, it would mark the third major U.S. airline merger since 2008, raising the specter of higher ticket prices and fewer choices for consumers as a handful of airlines dominate the skies.

To preserve competition, antitrust experts say, the Justice Department is likely to ask for divestitures in US Airways' hub at Washington's Reagan National and Charlotte, N.C., and AMR's hub in Dallas. Outside these areas, the carriers fly different routes for the most part.

"Overlapping routes are bad, and connecting routes are good," said Herbert Hovenkamp, who teaches antitrust at the University of Iowa College of Law.


http://www.reuters.com/article/2013/02/13/us-airlines-a...


Preserve competition, my ass.

Free market, my ass.

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