This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

The Deal: Airline Merger Could Mean Higher Prices, Senators Suggest

A key regulatory sticking point in the U.S. is the combined airline's substantial position at Washington's close-in Reagan National Airport, where it would control nearly 70% of takeoff and landing slots. Access to Reagan National is restricted due to the airport's congestion, and competitors including Southwest Airlines Co. and JetBlue Airways Corp. have been eager to gain increased access via slot divestitures.

US Airways has countered that the combination would control just one-quarter of the overall Washington market if two other airports, Washington Dulles International and Baltimore/Washington International, are included.

Deal advocates have also argued that allowing the combination to keep its full portfolio of slots likely would mean more flights between Reagan National and smaller markets, since competitors would likely be more interested in flying to large destinations that already have service to the airport.

Written by Lou Whiteman in New York

2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
LCC $0.00 0.00%
AAPL $126.92 -0.53%
FB $83.70 0.73%
GOOG $534.20 -0.22%
TSLA $208.95 1.80%

Markets

DOW 17,940.54 -94.39 -0.52%
S&P 500 2,098.26 -2.14 -0.10%
NASDAQ 5,017.3290 +22.7270 0.46%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs