This Day On The Street
Continue to site
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 Continuing Curse of US Airways

Given DOJ's opposition to the United merger and now to the American merger, it seems clear that the agency would also have opposed the Delta merger -- especially given that it was the only one that actually appeared to be anti-competitive. In recent years, no airline besides US Airways has ever faced opposition or likely opposition on every merger it attempted, despite the obvious fact that its size makes it the airline most in need of a merger. It is simply too small to compete indefinitely with larger airlines extracting higher revenue from better-positioned hubs.

Nevertheless, this is neither the worst period in US Airways history nor the only time the airline has appeared to have suffered from the ill will of some higher power.

Between 1989 and 1994, US Air suffered five fatal crashes. That was the worst time in the carrier's history, a time its spirit flickered. "We were sickened by the loss of life and we were fearful for the outcome for our company," an employee later told me in an interview conducted for the book, "American Plus US Airways: Building the World's Biggest Airline" -- still expected to be published in 2014.

"At the time, having a crash was a sign of doom for the organization, "the employee, who asked not to be named at this time, said. "You were considered to be unsafe and maybe people wouldn't want to fly you. And you kept asking 'Why is this happening?'"

The same question may be asked today. But it is important to remember that US Airways came through that horrible time. By comparison, an irrational DOJ seems a small problem.

-- Written by Ted Reed in Charlotte, N.C.

>To contact the writer of this article, click here: Ted Reed
3 of 3

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
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
DAL $41.96 2.90%
LUV $35.31 1.70%
UAL $46.49 1.80%
AAPL $95.14 0.14%
FB $99.53 -0.22%


Chart of I:DJI
DOW 16,017.43 -9.62 -0.06%
S&P 500 1,856.48 +3.04 0.16%
NASDAQ 4,284.8270 +1.0740 0.03%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs