Is Obama trying to destroy American Airlines?
The Obama Administration is suing to stop the merger of American Airlines and US Airways. US Airways seems pretty healthy but American seems to have no hope. It has a horrible leader in Horton, the relationships between management and unions are poisonous, and American has been losing money for years and years. Why would Obama and Holder want to put American Airlines, an iconic brand, out of business?
The only thing I worry about with American Airlines being merged is whether it makes US Airways culpable.
The proposed merger between American Airlines and U.S. Airways has nothing to do with President Obama destroying American Airlines because American Airlines is doing that to themselves. The last time I checked monopolies were illegal. If these two mega airlines merged into one it would then allow for price fixing and gouging the consumers. Flying is expensive enough and the prices would only continue to soar (pun intended) if American and U.S. Airways became one company.
American Airlines and US Airways will be at a disadvantage with Delta and United because they can't merge and won't be able to compete because their network is smaller. Ultimately Obama and Holder will force American to lay off even more workers.
Please note the attached article from 3 days ago with the headline, "Airline Investors Unnerved By Merger Roadblock." http://abcnews.go.com/Business/wireStor … k-19962453
Your article points out the government's incoherence. How can it allow 3 mega-mergers and not this one. How is having 4 big airlines a monopoly? Their suit has effectively handicapped American and US Airways from competing against the other 3.
Why would prices soar if American and US Airways merged. Isn't there a substantial and reliable method for obtaining discounted tickets via the free market of the internet? Aren't discount carriers like Jet Blue and Southwest prospering?
American Airlines contributed more to Mitt Romney than Barrack Obama during the 2012 Presidential Campaign. PACs associated with American Airlines contributed to Republicans by a margin of 2 to 1 over Democrats. Why should Obama care what happens to American Airlines? It is not free market capitalism that is driving this decision, quite the opposite. It is the belief by a leftist President that the only legitimate monopolies are publicly owned.
That comment is pure FOX NOISE propaganda nonsense. Financial analysts by and large have stated that this particular merger would result in higher air fares and charges to the public.
Why is the retreat of the leftist to use Fox News as a pejorative and to assume that everyone else must be a Fox News echo chamber.Leftists must be mind readers.I couldn't tell you the last time I watched Fox News.
#1. I am not a "leftist." #2. All one need do is read what real economists have to say about this potential disastrous merger.
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