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The feds say flyers deserve better.
And -- are right in so many ways.
They -- the Justice Department they filed a lawsuit to block a proposed eleven billion dollar merger between two aviation giant American and US Airways.
The Justice Department reports that merger could change the world's largest airline.
Claims that could hurt our wallets in a very big way the next time -- book a flight part of the lawsuit states the following.
Millions of passengers benefit each year from head to head competition.
That this merger would eliminate.
The two airlines responded today with a joint statement that reads in part blocking this pro competitive merger.
Will deny customers access to a broader airline network that gives them more choices.
-- now Michael Boyd co-founder and chairman of the aviation consulting firm Boyd group international sir your take on this.
-- this all sounds good.
It's very -- 101 but the DOJ is wrong there's very little overlap on these two carriers a major winners going to be Sherwin-Williams.
Repainting airplanes and I like mergers but in this case.
In most cases you're not but we did not want community that will go down to one airline as a result of loss -- the -- at reality several communities will actually benefit.
If if it did in what you're saying is this is different from let's say delta and northwest.
Delta and northwest had a lot of overlaps.
And in delta had a hub in Atlanta northwest had a hub in Memphis delta promised after that merger Memphis will not be affected.
Or change their mind after telling the truth because Memphis.
You know I nearly -- -- there -- eight flights today from new York and -- back and forth nonstop to Memphis on northwest and then there were on delta at the beginning.
Now there to.
He gets -- and an 80% of those people on the flight for connecting at Memphis.
The problem at Memphis was not the merger I know it sounds like it is but we study this stuff.
The reality is the fifty feet jets that said that -- as well as Cincinnati which is being cannot do by the way.
They can't make money with with oil prices -- you know oil -- over a hundred dollars a barrel they can't do it.
That equipment no longer work so from that perspective that's why was pulled down.
The Hubble worked great the problem is that economic to the airplanes change and that's why they did it and they're gonna there's going to be more of that.
And it's cheaper to have everybody go into Atlanta Atlanta expanded everybody -- but with these airlines were talking about.
They have completely different routes and there is an overlap.
There's there's actually no overlap to speak up now Philadelphia Dallas well -- -- two airlines the B one nobody really cares but that's not a big issue.
Most of the overlap is very very small they'll give an example for a photo Florida they have the US there there.
When American takes over and those frequent -- base that frequent -- -- in Sarasota becomes Americans.
America I'll be able to fly its hub in Dallas its hub in Chicago as well without that -- so does not gonna get that service you think this is gonna go forward.
I don't know that the Department of Justice as his numbers are just bad.
Their argument is kind of sleazy it just doesn't hold water especially since it approved prior mergers that have more overlap so I think up.
The airlines have a pretty good choice I think a lot of communities like Charlotte will be coming out in favor of this merger.
It's very good to see you thanks so much appreciate your expertise on these matters.
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