Abbott Announces Settlement on American Airlines Merger
Texas Tribune
The state of Texas has reached a settlement agreement with American Airlines and US Airways over the two airlines’ proposed merger, Attorney General Greg Abbott announced Tuesday.
Horton said American Airlines is committed to operating in Texas.
“And one of the reasons we are is because it is a pro-business state, and I think the attorney general is a great example of the pro-business attitude of our state,” Horton said.
Attorney General Greg Abbott: Why I challenged the American Airlines-US Airways merger
Dallas Morning News
Why in the world would Texas file a legal action challenging the merger of American Airlines with US Airways? The answer is simple: We believe that actions by the airlines and their officials violate antitrust laws. In fact, the legal violations appear so overt that it would offend my oath of office not to take action.
The legal action is based on evidence such as internal emails, investor presentations and other comments by top executives of the airlines. Those documents reveal their thinking about how shrinking competition in the airline industry — and, hence the merger — will allow the airlines to pile even more bag fees, ticket change fees and increased fares on customers. American and US Airways compete directly on thousands of heavily traveled routes. The merger would allow the new company to shed that competition and distort the marketplace — while harming competition for nearly 200 Texas routes.
Why American Airlines and U.S. Airways Tied the Knot
U.S. News & World Report
In recent years the U.S. airline industry has come to resemble a singles party, where large airlines have been gradually hooking up until suddenly there are only two remaining. The American Airlines-US Airways tie-up smacks of the last two singles shacking up due to expediency rather than out of love. Their exchange of vows is not because they “complete each other” but because it is easier to deal with the pressures of the world and meet your financial commitments when you have a life partner.
This merger appears to have been driven by trade unions and the senior management of US Airways, particularly CEO Doug Parker. American Airlines’s main unions backed the merger because it promised less job losses than the alternative solo strategy for the company. In the United States, trade unions have a stranglehold over much of the industry, stifling innovation and change. However, from a strategic management perspective, the American Airlines solo strategy made more sense. It is difficult to see what value US Airways brings to American beyond the ability to rationalize the route network, combine purchasing, maintenance, and repairs, and dominate certain routes. Consequently, this resembles a defensive strategy rather than a proactive one. In fact, it is not even much of a strategy—it is more of a plan to improve operational efficiencies.
Who stands to benefit if American Airlines merger is allowed?
Dallas Morning News
Re: “Merger not just about airfares — Strengthened to woo the elite, new AA could boost service for all,” last Sunday’s Business story.
You betcha. As an independent sales rep who pays for his own travel, thank you to the airline employees — ground and air — who have taken me safely over 3 million miles. You are not the problem. I appreciate the great job you do. It’s a government problem — again.
Abbott right to challenge merger
San Antonio Express-News
In recent years, major airlines have hit passengers with higher fares and plenty of fees.
These legacy airlines often follow each other’s leads. If one airline raises the fee for checked bags, or changing a flight, so do the others.
Greg Abbott Speaks With Robert Pratt About Merger
KFYO
ROBERT PRATT: attorney general abbott is joining other attorneys general in fighting the merger of american airlines of course a major texas business headquartered in north texas. I’ve been critical of it people on both sides of the spectrum have been critical.. particularly in the dallas area. even marc veasey breaking with the obama administration on it. but folks on both sides are not clear on this. but your opponent pauken “no true conservative would file this lawsuit” so I thought it would be great if you came on the program to explain what about this situation moved you as attorney general in this direction
ATTORNEY GENERAL GREG ABBOTT: well robert, first it is great to be back with you. and i have to say how special you are because i’m taking a little time away from a very special day in my family. today is my 32nd wedding anniversary. but you rank right up there near the top with my wife.
Greg Abbott Speaks With Bob Cole About Merger
KOKE-FM
BOB COLE: Greg Abbott… good morning sir
ATTORNEY GENERAL GREG ABBOTT: good morning. it’s great to be with a member of the hall of fame
Greg Abbott Speaks With Mark Davis About Merger
KSKY
MARK DAVIS: good morning sir, how are you?
ATTORNEY GENERAL GREG ABBOTT: great to visit with you