The Great Debate

Why airline mergers are inevitable

By Samina Karim
October 9, 2013

The American Airlines/US Airways merger talks are on hold due to the ongoing antitrust trial led by the Department of Justice. The D.O.J. is concerned, from the perspective of protecting consumers’ interests, that the resulting airline would have too much market power in many of its locations. Though this is true (assuming nothing about the airlines’ business was changed and no assets were divested), the underlying issues are broader than that.

Does bad publicity kill merger plans — and should it?

September 30, 2013

Last week Fairfax Financial Holdings chief executive officer Prem Watsa insisted that he would not walk away from a BlackBerry deal. “We’ve never renegotiated,” he said. “Over 28 years our reputation is stellar on that front. We just don’t do that.” Watsa’s statement followed a 6 percent loss in share price. The firm was in a tough spot. Reporters covered the market’s lack of enthusiasm and the deal looked like it could be a goner.

Fee bonanza spells more trouble for banks

June 26, 2009

Alex Smith-GreatDebate– Alexander Smith is a Reuters columnist. The views expressed are his own –