AIRPORT REAL ESTATE FOR $1,000

For sale, rent, lease? Game On!

Whatever network relationship American and jetBlue (B6) were to conjure up after announcing their strategic partnership, the question of scarce airport assets was certain to emerge. It has. Southwest and Spirit have voiced objections following DOT's completed review of the relationship.

The combination will have the largest network footprint in each New York and Boston. Formidable in Washington. DOT has agreed to terminate its review in return for certain commitments like: promised network growth; slot divestitures at DCA and JFK; and antitrust compliance measures.

A really smart move by AA/B6 with an administration having nearly two feet out of the door. And a blessing from Chuck Schumer who enabled B6 in the first place to boot.

The last round of consolidation ultimately became a real estate game as evidenced by what AS paid for west coast real estate held by VX. Meaningful competition in a market likely requires access to assets that can support 50-75 operations. Pretty tough when the "inn is full".

You knew this was coming. New entrants at the door. This issue should give pause to the USG regarding the makeup and competitive vigor of the domestic marketplace.

This is bigger than a press release.