Washington, DC (PRWEB) November 12, 2013
ARPC, a business advisory consulting firm offering economic, financial, statistical, business analytics and operational expertise to clients facing critical legal and business challenges announced today that Donald Martin, Ph.D., Senior Managing Director, and Zsolt Macskasi, Ph.D., Managing Director published a white paper, titled “Parsing the Case Against ‘New American Airlines'".
The white paper examines the reasoning behind the opposition by the U.S. Department of Justice, along with six other states and the District of Columbia, based on the alleged anticompetitive effects, such as decreased competition and higher prices, and contrasts this with the vigorous defense mounted by the two airlines, claiming more effective competition and benefits to passengers.¹ The paper describes what appear to be the key elements behind the DOJ’s action that might distinguish it from its decisions in recent airline mergers such as the unchallenged mergers between Delta/Northwest in 2008 and the United/Continental merger in 2010. The paper reviews the alleged efficiencies that the two airlines hope to achieve by the merger.
“Setting these conflicting views aside, in the antitrust community this is quite unexpected since two relatively recent airline mergers, the Delta Northwest merger and the United Continental merger both went unchallenged and it has been thought by many in the antitrust community that the industry needed further consolidation,” Dr. Martin explains. “In this paper, we discuss how airline mergers are analyzed, the key elements that may have triggered the government’s opposition and we take a look at how the merging parties claim that the merger will bring more competition to the airline industry," Martin said.
“ARPC has applied knowledge in the analysis of economic issues that arise in antitrust cases in various industries, including the airline industry,” said John Brophy, ARPC Partner. “The firm has over 40 years of experience developing econometric and analytical models to evaluate competitive market risks, that are the primary focus of concern of the proposed merger,” he said.
To download the white paper, click here.
ARPC is an economic and management consulting firm that provides statistical, econometric and financial analysis to clients facing complex legal and business challenges. For over 40 years, ARPC’s consultants have assisted law firms, corporations, governments and non-profit organizations in addressing their most serious economic and financial concerns in the courtroom, board room and marketplace. ARPC provides expert services in a wide variety of cases involving mass torts and product liability, antitrust, intellectual property, securities litigation, bankruptcy, and settlement administration.
Media Contact: Ran Farmer, ARPC (202) 797-1111 r(dot)farmer(at)arpc(dot)com