Bobbydgg From United States of America, joined Feb 2001, 100 posts, RR: 0 Posted (8 years 10 months 3 weeks 2 days 7 hours ago) and read 3650 times:
In reading over both the US Airways merger proposal and DL's rebuttal, it seems to me that the unspoken value in the US-DL merger is the "New Delta's" ability to raise prices stemming from its market power as the largest airline in the world.
In its presentation, US emphasized only the synergies that the companies achieve by using the bankruptcy rules to reduce capacity and thereby improve profit margins. Obviously, US has downplayed the enhanced pricing power of the new airline due to anti-trust concerns.
For those with knowledge of the proposed transaction, what am I missing in terms of the merits of the US proposal?