US Airways - American Merger Oppossed by US Department of Justice

Adding to the heated controvery, political uncertainty and maneuvering surrounding control of the Charlotte Douglas International Airport (CLT) the US Department of Justice weighed in and says that it is against the merger of US Airways and American Airlines, which would make CLT an even bigger one-airline hub. The reason for the objections according to Attorney General Eric Holder, is lack of competition and further consolidation of the airline industry, resulting in fewer choices and higher fares for travellers. The Business Travellers Alliance and several states piled on to applaud the Justice Department's move. With Jerry Orr and CLT's status in Limbo, these are trying times for those trying to do long range planning and strategy for the airport. Attorney General Holder's move is much like that of Caaptain Renault in the movie Casablanca : "I'm shocked, shocked to find that gambling is going on in here!" This cynical long-time observer of and commentator on the airline industry is amazed that it has taken some six US Presidential Administrations over the course of some 38 or more years to realize that deregulation of the US airline industry has resulted in fewer choices for consumers and an outmoded hub and spoke systems with fewer long distance non-stop or direct flights; itineraries that take as long as those in a DC-3; and in places such as Charlotte, a monopoly on flights and astronomical fares (try $3,000 To Washington Dulles on one day.) These are interesting times to be observing the future of the US airline industry in places such as CLT. But it will also be a bumpy ride over an uncertain course.

The Battle for Control of Charlotte's Airport: Conflicts of Interest?

http://www.charlotteobserver.com/2013/04/25/4004897/behind-the-battle-for-clt.html#emlnl=Todays_Headlines

The political moves for control of Charlotte's airport (CLT) has all of the making of a political thriller with a potential Department of Transportation regulator potentially beholden to an airline he would regulate; one party seeking to wrest control of a facility controlled by the other party; and most customers of CLT never stepping foot out of the gate areas.

I'm Shocked! Shocked! 30 Years after De-regulation the US Airline Industry is getting less competitive and becoming monopolistic?

http://atwonline.com/international-aviation-regulation/news/white-paper-lists-aa-us-merger-competition-concerns-0807

White paper lists AA-US merger competition concerns:

According To Air Transport World's, Karen Walker, a merger of American Airlines (AA) and US Airways (US) could substantially reduce competition, leaving four majors controlling over 70% of the US domestic market, according to a white paper released Wednesday.

US has made clear its interest in pursuing a merger with AA, which is restructuring under Chapter 11 bankruptcy protection, and AA CEO Tom Horton in July said it made sense to evaluate the possibility, but no formal process has begun (ATW Daily News, July 11).

In a jointly produced paper, the American Antitrust Institute (AAI) and Business Travel Coalition (BTC) say the merger could lead to the creation of a four powerful, closed airline systems that would be virtually impermeable to competition and could create a hostile environment for low-cost carriers (LCC) and regional airlines.

Is anybody really surprised at this.  As some observers prophesized de-regulation has resulted in less competition; loss of service to many communities; and travelers complain about shoddy customer service.  Most airlines have made lack of communication and contact with their customers an art form...and business travelers pay thousands of dollars to fly business class to avoid being stuffed like sardines into three by three 31 inch pitch seats, the risk of deep veinb thrombosis, and being bracketed by whining children. 

Is the air travel "bubble" about to burst in the USA?  Can A4A get its members to adopt better business practices?