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chepos
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EC Approves AA/US Merger

Mon Aug 05, 2013 3:40 pm

No surprise, the EC gives their blessing to the AA/US meger (with conditions).

http://aviationblog.dallasnews.com/2...ican-airlines-and-us-airways.html/
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evomutant
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RE: EC Approves AA/US Merger

Mon Aug 05, 2013 3:49 pm

"Furthermore, the parties, supported by their joint venture partners of the Transatlantic Joint Business, committed to entering into special feed traffic agreements with the likely entrant airline." On PHL - LHR

Forgive my ignorance, but does that mean the new AA will have to continue to put connecting traffic onto the flight of whoever gets the slots? If so how does that work? A certain percentage? Or merely have to display the option on the booking engine?
 
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OzarkD9S
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RE: EC Approves AA/US Merger

Mon Aug 05, 2013 5:14 pm

Wouldn't it be interesting if QR started DOH-LHR-PHL? Keep it "in the family" (oneworld) while providing a competitive alternative. Stranger things have happened....
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727LOVER
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RE: EC Approves AA/US Merger

Mon Aug 05, 2013 10:43 pm

Quoting chepos (Thread starter):
No surprise, the EC gives their blessing to the AA/US meger (with conditions).

I'm sorry, hold on......THEY have a say??
"We must accept finite disappointment, but never lose infinite hope." - Martin Luther King, Jr.
 
Motorhussy
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RE: EC Approves AA/US Merger

Mon Aug 05, 2013 10:55 pm

Quoting 727LOVER (Reply 3):
Quoting chepos (Thread starter):
No surprise, the EC gives their blessing to the AA/US meger (with conditions).

I'm sorry, hold on......THEY have a say??

The EC is a huge market for AA and US so if their merger's going to impact on carriers from the various European Union states and the market between the two continents, then YES they have, no doubt, quite a lot to say.
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boysteve
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RE: EC Approves AA/US Merger

Tue Aug 06, 2013 9:12 pm

Quoting 727LOVER (Reply 3):
I'm sorry, hold on......THEY have a say??

Yes, and if two European airlines both with TATL operations the US authorities would make a judgement!
 
brilondon
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RE: EC Approves AA/US Merger

Wed Aug 07, 2013 3:08 am

Quoting 727LOVER (Reply 3):

Quoting chepos (Thread starter):
No surprise, the EC gives their blessing to the AA/US meger (with conditions).

I'm sorry, hold on......THEY have a say??

Absolutely, with the impact on the European aviation that it would have then why would Europe not have a say if the merger would go though. It would impact the competitive nature of the industry in Europe as well as the U.S.
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Byrdluvs747
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RE: EC Approves AA/US Merger

Wed Aug 07, 2013 4:35 am

Quoting evomutant (Reply 1):
Forgive my ignorance, but does that mean the new AA will have to continue to put connecting traffic onto the flight of whoever gets the slots? If so how does that work? A certain percentage? Or merely have to display the option on the booking engine?

I have to question that as well. Do they really expect AA to potentially feed VS or DL flights? Wouldn't that also conflict with US collaboration laws. Forcing AA to give up a LHR slot is one thing, but forcing feed smells like euro-socialism to me.
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deltal1011man
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RE: EC Approves AA/US Merger

Wed Aug 07, 2013 4:57 am

Quoting 727LOVER (Reply 3):

Yes.
but other countries have to approve it, it just happens that the EU is a bigger deal. Every place they fly will have to OK it. (Japan and China were a bigger deal in the DL and UA mergers and UA's PA Asian network buy)

but the Us has a say in anyone else mergers in the same.

Quoting Byrdluvs747 (Reply 7):
but forcing feed smells like euro-socialism to me.

Europe forcing horse crap on US carriers/companies? no can't be true.

Quoting Byrdluvs747 (Reply 7):
I have to question that as well. Do they really expect AA to potentially feed VS or DL flights?

With it being the EU, I fully expect that.
 
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BaconButty
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RE: EC Approves AA/US Merger

Wed Aug 07, 2013 9:00 am

Quoting Byrdluvs747 (Reply 7):
Forcing AA to give up a LHR slot is one thing, but forcing feed smells like euro-socialism to me.

If you read the linked blog post, it seems pretty clear that this was offered by AA/US to allay competition fears on the LHR-PHL route, rather than foisted on Americas finest by the bureaucrats of socialist Europistan. Wink

[Edited 2013-08-07 02:42:06]
Down with that sort of thing!
 
jumpjets
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RE: EC Approves AA/US Merger

Wed Aug 07, 2013 10:33 am

Quoting Byrdluvs747 (Reply 7):
I have to question that as well. Do they really expect AA to potentially feed VS or DL flights?

Yes, this seems to be a factor in the EU competition rulings. If my memory serves me right, when the EU agreed the BA takeover of BD as well as giving up slots BA had to make similar commitments to other airlines to provide [or at least make available if they wanted it] feed from BA domestic routes to their services.
 
PanHAM
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RE: EC Approves AA/US Merger

Wed Aug 07, 2013 10:45 am

Yes, WE have to say and there is a planet outside the USA, believe it or not.

But the good news is, as was mentioned several times already, the US has to approve European mergers as well and that does not ponly affect aviation.

Now, offering LHR-PHL, a OneWorld hub to hub route as compensation, or, better, one slot at LHR as I understand it, is a joke and rather proves that EU beuarocrats do not understand how alliances work. BA/AA can still fly that route and put larger aircraft on it while someone else loses their shirt on LHR-PHL even if AA offers a generous interlining agreement for inland destinations. Pax can be roted via other hubs as well, like CLT or DFW and the new competitor can be dried out that way.

For both other alliances, such a route would be spoke to spoke and that does noit work. Onply solution is to operate that for a couple of months and then use the slot otherwise.



Quoting Deltal1011man (Reply 8):
Europe forcing horse crap on US carriers/companies? no can't be true.

wait till we retaliate again by making Starbucks, Amazon etc pay taxes in Europe....    
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RyanairGuru
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RE: EC Approves AA/US Merger

Thu Aug 08, 2013 2:38 am

Quoting Byrdluvs747 (Reply 7):
Do they really expect AA to potentially feed VS or DL flights?

They're not asking for a code share, JBA, or even FF reciprocity, only an interline agreement.

Extra-alliance interline connections between non-partner airlines happen all over the world, every day. All that is required is making your fares available to be ticketed in conjunction with the longhaul ticketed. One example of the top of my head is that QF and US interline at LAX, believe it or not. Another is BA and SQ at LHR. AY and TG interline Australia-Europe.

AA/US would not be required to sell seats on DL/VS PHL-LHR. It would only apply if somebody booked their ticket with Delta/Virgin and - for some crazy reason - desperately wants to connect at PHL between, say, ORF and LHR. DL/VS could ticket that itinerary with AA/US ORF-PHL and DL/VS PHL-LHR. I honestly don't expect that DL/VS will actually market such connections (unless they are desperately in need of traffic PHL-LHR) because they lose part of the revenue earned on the ticket to AA/US. In most cases you would probably need to get a travel agent to construct the itinerary and have the ticket issued if you were crazy enough to do such an itinerary.

Quoting Byrdluvs747 (Reply 7):
feed smells like euro-socialism to me

what an educated comment  
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Aesma
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RE: EC Approves AA/US Merger

Wed Aug 21, 2013 11:05 am

It's European Union not Community.

The EU has a say because we're talking about a global market but will rarely (never ?) block a merger of two non European companies. I've seen this in the computer industry, more specifically hard drives, two mergers were allowed recently that dramatically reduced competition and immediately made prices soar, the EU only expressed meaningless "concerns" (Western Digital buying Hitachi HDDs business and Seagate buying Samsung HDDs business).
New Technology is the name we give to stuff that doesn't work yet. Douglas Adams
 
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RyanairGuru
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RE: EC Approves AA/US Merger

Wed Aug 21, 2013 11:49 am

Quoting Aesma (Reply 13):
It's European Union not Community.

In this case it is the European Commission, so EC is the correct abbreviation
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