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DoJ: American-US Airways Get November Trial

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A Federal judge has granted AMR Corp's American Airlines and US Airways request for a November trial. (wallstcheatsheet.com) More...

AWAAlum
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canuck44
canuck44 3
Noted on the dates, but there is some strange information in this article particularly if you follow the links. There are claims that Miami Dade has supported the merger, yet the State of Florida is signed on with the DOJ (for reasons that entirely escape me).

Additionally, there is no analysis within the article as to what is really going on. The DOJ basically were going to shakedown the airlines by dragging this out but got cut off at the knees by the judge with this date. Now that most of their trump cards have been pulled, look for a "settlement" on a few token items for DOJ to save face.

If it is all about slots at DCA, it will get interesting for if it is only a numbers game lots of congressmen will lose their ride home unless DOJ demands relinquishing specific routes. JetBlue has already demanded slots there, but they want the shuttle routes not the small city commuters. We may actually find out who was really behind this filing.
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JetMech24
JetMech24 2
Couple days late with this one.
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AWAAlum
AWAAlum 1
I've got broad shoulders, I can accept that. Ceptin' for something kinda strange - the article just came out today - it's dated September 1. There have been related stories, but none (to my knowledge) confirming the date's set. Darn these Macs.
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JetMech24
JetMech24 1
Yes, the article is new, but the news in it is not. The story itself came out last week, Thr or Fri, I think. AA and US have been asking for Nov, but the DOJ wanted to switch it to Feb. First comment was not meant to be offense and I apologize if it came off that way, was meant to be just a quick little FYI.
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AWAAlum
AWAAlum 2
I know - I'm the one who posted it. However, mea culpa if there was no news in the article for you. Bad me, bad.
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AWAAlum
AWAAlum 1
Well, thanks for the apology, but I'm not that thin skinned. If I mess up, I'll fall on my sword.
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JetMech24
JetMech24 1
Now now, no need for harry carry here, lol
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bentwing60
bentwing60 2
Regardless the primacy Donna, love the Chutzpah. And it's about time Eric "the great" Holder gets stuffed!
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Musketeer1
Musketeer1 1
Policy makers need their cut before a private matter is settled.
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Moviela
Ric Wernicke 1
The President is behind this. He is carrying water for congress and their selfish monopolization of Regan National (DCA.) The trial date makes little difference. Holder will request statistics from another agency, also controlled by the Administration, they will delay, and Holder will run to Court complaining he needs more time to prepare.

Happens all the time. Holder will also lay difficult to defend information on the airlines at the last minute through the discovery process that will have them groveling for more time as well.

The trial itself will be more of a beauty contest. If either does not like the winner, the appeals process (where the real lawyering takes place and true legal decisions are put straight) can take years to make it through the Supremes. (the one's without Diana Ross)

If Doug Parker and his wild west posse thinks he has any say about the workings of DCA, he will find AMR sent down the trail like a cattle drive via the bankruptcy Court. We all know what happens at the end of a cattle drive. They are sold to the highest bidder and slaughtered.
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JetMech24
JetMech24 3
Unfortunately you are probably right, but I think what this judge has decided is that if the DOJ feels reason to block the merger, then they should be able to go to court right NOW and prove their case.
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AWAAlum
AWAAlum 2
You may know SOME of what you speak, but you clearly aren't familiar with D. Parker and Phoenix. It may be located in the country's beautiful Southwest, but it's just as much in the 21st century as any state. Phoenix is a huge, modern, cosmopolitan city with talented business-savvy people. It draws from every corner including high tech companies, aerospace, et cetera. And if you think Doug Parker's reach ends at the Arizona borders, you haven't done your homework.
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canuck44
canuck44 1
Agree this is lawfare likely driven by President's donors, but this was a huge set back for Holder's slugs. Remember both sides have already submitted information to the judge...the original complaint and the airlines responses (they are still separate and have separate legal teams). It sounds like other submissions have been made as well by interested parties. The airlines were ready for this with lots of data already in her hands and DOJ has already had almost a year to contemplate this.

The complaint has multiple components to it. We will find out whether the DOJ submission has legs very quickly from two indicators. Does the judge give them an injunction to stop the merger and how many of the complaints does she dismiss out of hand from the information given. First day, "Do you have any additional information related to Article X of your complaint, Mr. DOJ Slug? No? Then summary judgement granted for Article X of your complaint. Next article." She does have the ability to deny an injunction and leave a few articles on the table for future resolution.

DOJ knows this. Look for a face saver settlement before the November date. DOJ had bad luck drawing this judge when they could have filed in a friendlier venue. They have to make the best of it now.
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