US Airways-American Airlines Merger Challenged (Holder: 'higher airfares, fees, fewer choices')

KLFM967 ^ | 8/13/13

[Libloather]

The US Justice Department and a number of state attorneys general have challenged the proposed $11bn (£7bn) merger between US Airways and American Airlines.

The Justice Department says the merger would result in the creation of the world's largest airline and reduce competition for commercial air travel in local markets.

In a joint statement, the airlines said they would "mount a vigorous defence" of the planned merger, adding that blocking the deal would "deny customers access to a broader airline network that gives them more choices".

[JudgemAll]

Fewer choices by not letting them choose how to conduct business? Divide to reign, I suppose.

[Publius Valerius]

There are a lot of regulations to kill any new firm attempting to make a go of it.

Forget the regulations. It's the high capital requirements that prevent new entrants. Airlines don't make a ton of money and a new entrant would have billions of dollars in costs to buy a fleet. There's a reason that so many airlines outside the US are run by the government.

[who_would_fardels_bear]

"Monopolies tend to work outside "the Laws of the Free Market."

Free market purists claim there is no need for anti-monopoly laws because the free market will deal with them in time.

So monopolies ARE part of the free market system.

If only we lived for thousands of years, then when a monopoly takes over for a decade or two it will be just like the blink of an eye. Unfortunately we only live to around 80 or so and a monopoly can control our lives for quite a huge chunk of it ... especially if they are in cahoots with the government.

So we are stuck with either anti-monopolies laws enforced by a government that can be bribed into allowing certain monopolies to continue and others to form. Or we could get rid of the anti-monopoly laws and wait for the marketplace to work its magic ... hopefully before we're six feet under.

[who_would_fardels_bear]

Every industry seems to have been captured by the "Go big or go home" mantra.

Somebody comes up with a good idea. Soon the venture capitalists are pumping millions into it and they are opening franchises across the world at a hectic pace. Or they are plastering the airwaves and internet with advertisement.

If you don't get the attention of the venture capitalists you will be bowled over by the company that does. But even if you do get the millions, you can still ultimately fail like Boston Market, etc.

Whatever happened to letting an idea mature slowly and naturally so that nothing is lost when the concept is translated from one storefront to the entire country or planet?

[TBP]

The regime again protecting the consumer from himself.

[cornfedcowboy]

Well......high speed rail will kill the airlines anyway.

[Rodamala]

What would Milton say?

[apoliticalone]

IMHO we need more competition in the airlines not less. I hate the airlines with their outrageous never ending fees, requirements, attitude, and cramped seats almost as much as the TBTF banks. We need more competition and less mega businesses that own Congress.