I have purposely avoided comment on the pending merger between American Airlines and US Airways. Primarily, this is out of respect for my former colleagues that remain at American. Secondarily, I’ve wondered privately if things weren’t going too well since the proposed merger was announced.
Today’s news that the US DOJ is suing to block the merger is a big hiccup to say the least. In the end, I still think a merger can happen. This could be a bargaining chip. But it is obvious that the two airlines are going to have to give up something. Will that price be so high that the value of merging no longer looks so good? Only time will tell. In the meantime, pop the popcorn. This could be cute.
-MJ, August 13, 2013