Call For Bidding For Gates Gets Stronger With The Airline Merger

Upcoming updates reveal the joint merger of two giants American Airways and US Airways and their joint decision to give up the bidding and landing rights. This has opened up the gates of opportunity, for other carriers to carry on biding on landing and gate rights as well, which would be effective after the merger.

Though, a concern hovers over the loosing of services between Washington and few smaller cities. This would raise once the bigger airlines, stop bidding over the gates and landing rights, as estimated by the leaders of the house of senate transport committee.

The concerns were made public, by the lawmakers with the consumer advocates making arrangements to acquire deeper concessions from airlines over the approval of the merger. This is being prepared with the appointment of a judge from the federal department with the intent of concession along with the creation of the world’s biggest airline.

american-airlines

With the target competition being shifted with a dialogue of a major merger, the landing rights and gates as an asset would be handed over to the low fare airlines. This even led to the settlement of the case, filed by the U.S Justice Department against the Legacy Airlines.

A letter was drafted and presented to Eric Holder who is the attorney in lieu of opening up equal opportunity for all airlines, by the top democrats and Republicans on the transport committee. This would present a significant slag on to the flights into the smaller cities, with a major disadvantage for the customers.

JetBlue Airways together with Southwest Airlines are expected to bank on this opportunity to bid over the American and US Airways landing rights.

Similar intentions have been expressed by the Delta airlines, over the rights at Regan National, plus two of the major gateways that American Airlines is yet to release at Dallas Love Field. Trebor Banstetter known as the spokesman of Delta stated that they all believed that every airline should get the chance to go ahead with bidding matters related to divested assets.

In other controversial statements Brad Hawkins who is the spokesman of Southwest expressed his deep concerns over the bidding opportunities being open to the legacy airlines, which already hold significant stand in the Reagan and LaGuardia (New York) airports. He contravenes by stating that sole purpose of divestiture will get defeated so as to generate low amount of cost, tough competition with advanced and enhanced flight options for customers.

Accompanying the settlement of lawsuit by the department of Justice, against the US and American Airways, numerous reviews are expected to be made over the government’s decisions through the Tunney Act. The airlines sector is confident to comply with the requisites and over the outcome of the 60 days comment, so as to finish off their deal until December.

Numerous statements put up by elite agencies and organizations have brought in numerous controversies and question over the effective deals being made over the mergers and its implications. Numerous speculations are being made and adjudicated over by the critics who consider the settlement as to be a compromise. Though, it is set to acquire a definite conclusion over the agreed divestment.

Leave a Reply