November 13: Smaller Carriers and the Flawed Deal to Make an Airline Giant (Bloomberg Businessweek)
Federal antitrust officials have a tall order for low-cost airlines: Take a couple of gates at some of the biggest U.S. airports and launch new services to compete against the world’s largest airline.
In agreeing to allow American and US Airways (LCC) to complete their merger next month and avoid a risky trial, Justice Department lawyers extracted a concession of gate access at Boston, Chicago O’Hare, Dallas Love Field, Los Angeles, and Miami airports. The settlement announced Tuesday also calls for the post-merger American Airlines to divest access at Reagan National Airport near Washington, D.C., and New York’s LaGuardia Airport, which will allow carriers like Southwest(LUV), JetBlue Airways (JBLU), Spirit Airlines (SAVE), and Virgin America to offer more flights...