Recently, there are reports, as well as rumours saying that the Proposed UA-US merger will never occur, regardless of how confident James Goodwin is.
I have had a few words with a few analysts, as well as the Managing Director Mr Tony Liu of Morgan Stanley. I have also attended one of their board meetings (I have proves!) They all believe that the proposed merger will go through.
First of all, Wolfy is a smart guy and he is fully aware that under Bush's administration, the merger will benefit he himself, as well as US Airways in terms of the whole company. Republicans are KNOWN to support huge firms.
By merging two airlines, UAL will dominate both West Coast as well as East Coast and that will be a monopoly. Nevertheless, let's look at Microsoft. Under Clinton's Administration, the Court has ruled that Microsoft as a monopoly. Anything happened to Microsoft? NO! Microsoft is not recieving any kind of penalties. The anti-trust thing is simply GONE.
There are all different kinds of monopolies in the US, as well as all over the World. It is hard to stop them.
Although it seems that the Justices do not favour the merger, the Managing Director, as well as the analysts here at M.S strongly believe that by selling D.C. Air to AA, the merger will probably go through. Actually, J Goodwin is likely to come up with something new in the coming months to have the merger going through.
The merged airline will create a fierce competition between airlines like American, Delta, Continental etc.
Anyway, let's see!
Comments on this?