AA + US Merger announcement imminent?

[EZEtoGRU]

Media stories today that AA and US are very close to an agreement to merge and that a formal announcement could be made early next week. The merged carrier would be called American and the headquarters would be in Fort Worth (sorry Governor Brewer). Parker from US will likely run the merged airline.

 

Personally I still hope the deal falls through....but there seems to be a lot of momentum now for it to go forward.

 

Here is a Fort Worth paper story from a few hours ago. The WSJ has something similar this afternoon as well.

 

http://www.wfaa.com/news/business/American-Airlines-merger-expected-next-week-190101971.html

[down_to_business]

Given the recent actions by the current administration, are you certain the DOJ would allow such a merger to happen (ie AT&T and T-Mobile or Constellation Brands and AB InBev )?

[EZEtoGRU]

Given the recent actions by the current administration, are you certain the DOJ would allow such a merger to happen (ie AT&T and T-Mobile or Constellation Brands and AB InBev )?

Good question. DOJ allowed the DL/NW and UA/CO mergers to proceed with little difficulty so it is expected that an AA/US merger will proceed without major government interference. It is believed the merged carrier may have to give up a few take-off and landing slots at DCA (Washington National) but not much else.

[+ tristanbaldwin]

Any time the number of competing airlines narrows; the pricing in/out of given cities will increase. It's interesting that the United/Continental merger created the worlds largest GLOBAL airline...but the US/AA merger would create the US' largest DOMESTIC airline.

 

FYI: Delta also purchased a large stake in Virigin Atlantic(But not Virgin America)...just to get slots at LHR.

 

My predicton: Jetblue/Virgin America merger within 5 years.