centrair
Posts: 2845
Joined: Thu Jan 13, 2005 3:44 pm

Rep. Oberstar: China Routes And Mergers

Wed Dec 06, 2006 10:10 am

Carrier gets an ally for China

Jim Oberstar will be the chair of the House Transportation and Infrastructure Committee from January.

On China Routes:

Quote:
A key House Democrat, the incoming transportation committee chairman, said it might make sense for the government to award the next U.S.-China flight to American Airlines because that would boost competition across the Pacific Ocean.



Quote:
Rep. Jim Oberstar, who counts Minnesota-based Northwest among his constituents, told the Minneapolis Star-Tribune that he intends to recommend by mid-December that the Transportation Department award the route to American or United.

On US-DL Merger:

Quote:
"People are saying [that] there is overcapacity" and that some seats should be removed from the market through mergers and other consolidation, Oberstar said. But he sees carriers flying with many full planes and argues that "there is a lack of substantial competition" on many routes.



Quote:
"What does this do in markets where the two carriers are now competing?" he said. "Who are the other competitors in those markets? Will some cities lose out? Will travelers [end up] paying higher fares?

"Those are the questions that I think have to be evaluated before you can make a judgment on whether this proposed merger would be in the overall best public interest.



So this could mean CO and NW are out of the China run.
Oberstar isn't too keen on this merger.
Yes...I am not a KIX fan. Let's Japanese Aviation!
 
LAXdude1023
Posts: 4457
Joined: Thu Sep 07, 2006 3:16 pm

RE: Rep. Oberstar: China Routes And Mergers

Wed Dec 06, 2006 10:34 am

Quoting Centrair (Thread starter):
So this could mean CO and NW are out of the China run.

NW has always been out of it, but I dont think CO is. They still have a great chance.
It is what it is...
 
centrair
Posts: 2845
Joined: Thu Jan 13, 2005 3:44 pm

RE: Rep. Oberstar: China Routes And Mergers

Wed Dec 06, 2006 11:32 am

Quoting LAXdude1023 (Reply 1):
but I dont think CO is. They still have a great chance.

I thought this too.

They were saying that NW and UA still have a lot of routes and access and granting service to AA or CO would balance out Asian routes. But they still put UA higher up.

Which will weigh heavier: Connections (DFW), Politics (IAD) or Commerce (EWR)?
Yes...I am not a KIX fan. Let's Japanese Aviation!
 
commavia
Posts: 9744
Joined: Mon Apr 25, 2005 2:30 am

RE: Rep. Oberstar: China Routes And Mergers

Wed Dec 06, 2006 12:09 pm

Interesting that he's not supporting hometown carrier Northwest, although I completely agree with his reasoning as to why Northwest should get this authority. And perhaps -- just perhaps -- he's still a bit pissed about Northwest's dealings with the State of Minnesota?

My question is: why has he thrown his support behind American, as opposed to Continental or United? Did they contribue to his campaign more than the others?
 
Iloveboeing
Posts: 339
Joined: Mon Oct 31, 2005 11:02 am

RE: Rep. Oberstar: China Routes And Mergers

Wed Dec 06, 2006 12:15 pm

I'm surprised that AA is bidding to fly to Beijing from DFW. I would have thought they would bid to go from O'Hare to Beijing, to complement their O'Hare to Shanghai service. That would give United some competition on that route.
 
LAXdude1023
Posts: 4457
Joined: Thu Sep 07, 2006 3:16 pm

RE: Rep. Oberstar: China Routes And Mergers

Wed Dec 06, 2006 12:20 pm

Quoting Iloveboeing (Reply 4):
I'm surprised that AA is bidding to fly to Beijing from DFW. I would have thought they would bid to go from O'Hare to Beijing, to complement their O'Hare to Shanghai service. That would give United some competition on that route.

If they had asked to serve it from ORD, they would have no prayer of getting it. One of the selling points of DFW is that it would be a gateway to an area of the nation that doesnt have China service. ORD is served heavily from/to China.
It is what it is...
 
EWRCabincrew
Posts: 4306
Joined: Mon May 08, 2006 2:37 am

RE: Rep. Oberstar: China Routes And Mergers

Wed Dec 06, 2006 1:43 pm

Relay this info to AA's pilots...
You can't cure stupid