DOJ willing to negotiate on US Airways/American Airlines merger

That news came out last week. Now the Wall street Journal (subscription required) is providing some sense of what the government wants US Airways sand American Airlines to give up to approve the merger:

A person familiar with the Justice Department’s thinking said department lawyers insist that any settlement should include divestitures at key airports throughout the U.S. The department believes that the two airlines would need to divest assets at those airports to ensure that their merger wouldn’t limit consumer choices on nonstop and connecting flights or harm consumers by raising fares, this person said.

Note in particular the phrase “throughout the U.S.” — this is about more than just some slots at Washington’s Reagan National Airport. The two carriers really are major players at 10 airports — their hubs — so it’s not too hard to figure out what other assets could be in play. The article mentions slots at LaGuardia and John F. Kennedy International airports in New York and gates at Los Angeles International Airport and Chicago O’Hare as scarce assets that limit other airlines from entering those critical markets. Rights to São Paulo, Brazil could be another possibility.

The paper notes that “a person familiar with the process said Sunday that the airlines’ settlement proposal would include divestments at other U.S. airports besides Reagan National.”

The article does not mention Charlotte specifically, though obviously US Airways’ São Paulo flight could be vulnerable. Would not be surprised in the least if the airlines proposal included giving up American Airlines’ two gates on A Concourse at CLT.

Bonus observation: If whomever is currently in charge of Charlotte Douglas International Airport decides to pull the trigger on any major upgrades until this situation is resolved, they should be fired for incompetence. And even if the DOJ and the airlines do cut a deal, it will take some time to understand what the impacts are here in CLT of the merger. Throwing in merger divestments would just make the situation going forward even muddier.