In the past week and a half since agreeing to the assistance offered by a mediator, the United States Department of Justice (DOJ), American Airlines (AA) and US Airways have made significant progress towards settling the DOJ’s anti-trust lawsuit against the US$11 billion merger, which would create the world’s largest airline by the number of passengers carried. On Monday, NovemberRead More
Alitalia is fighting bankruptcy as its shareholders initiate efforts to raise funds in light of its main fuel supplier threatening to cut off supply. The Italian postal service will contribute €75 million (US$101.6 million) to the rescue package of €500 million.
Meanwhile, Air France-KLM – already the biggest shareholder of the beleaguered airline – waits to see if it should increase,Read More
Last month, the US Department of Justice (DOJ) filed a lawsuit attempting to block the proposed merger between American Airlines (AA) and US Airways, which would create the world’s largest airline by passengers. As part of the lawsuit, the DOJ presented a list of 1,044 markets in which it believed the merger would be illegal in due to changes inRead More
The long awaited merger between American Airlines and US Airways has been blocked by the US Department of Justice (DOJ) – after sanctions by a federal judge early in the year and by the European Union (EU).
Assistant attorney general for the anti-trust division of the Department of Justice (DOJ) Bill Baer said the merger would “eliminate competition between US AirwaysRead More
Last week, the US Government Accountability Office (GAO) sent Gerald L. Dillingham, Ph.D, its director of physical infrastructure issues, to testify before the Senate Subcommittee on Aviation Operations, Safety, and Security on issues arising from the proposed merger of American Airlines and US Airways. In his testimony, Dillingham performed an analysis of the merger and made several conclusions regarding itsRead More
On June 5, Atlanta-based Delta Air Lines announced that it was de-hubbing its once robust hub at Memphis International Airport, marking the end of a historic operation that dated back to the mid-1970s when Southern Airways launched a secondary hub to complement its Atlanta operation. Over the next 30-plus years, the operation grew and prospered, first under the umbrella ofRead More
It could have been much worse. International Airlines Group (IAG), formed by the merger between British and Spanish flag carriers British Airways and Iberia, posted a €997 million (US$1.29 billion) 2012 before-tax loss, dragged down by a €343 million impairment charge against the intangible assets and a €202 million transformation cost at the beleaguered Iberia unit.
Amid a moribund Spanish economyRead More
2012 was a difficult year for Chicago-based full service carrier United Airlines, who reported a 2012 full year net profit of US$589 million excluding special charges of US$1.3 billion. For the last quarter of 2012, United lost US$190 million excluding US$430 million in special charges as the airline grappled with the effects of “Superstorm Sandy” and lingering customer unease overRead More
It’s a familiar American airline story. Delta Air Lines went through it, so did United Airlines. Now it is Fort Worth, Texas-based American Airlines’ turn to carry the can.
But for American this time, it never rains but pours. Parent AMR Corporation is operating under Chapter 11 bankruptcy protection. A take-over by the fifth-largest US carrier US Airways is on theRead More
When Tempe, Arizona-based US Airways announced a record US$321 million 2012 second-quarter net profit excluding special charges, up 203% from the corresponding period in 2011, it stood in sharp contrast to American Airlines’ parent AMR Inc., which reported a net loss of US$241 million despite record quarterly revenue of US$6.5 billion as well as artificially low operating costs due toRead More