Continental/United Merger - isn't this becoming a *too big too fail* problem down the road?

[Donnachaidh]

Mergers -- why are they being allowed when we have companies who literally held up the taxpayers because they were too big to fail?

I know it's complicated - but shouldn't the Government be pressuring these companies to find another way to work out their problems?

thoughts?

[high density]

1. I don't think so

We've let some rather large airlines fail in the past, such as Eastern and PanAm. Worst case scenario they get liquidated, leaving more customers for Delta, US Airways, et al plus the ability to pick up some equipment on the cheap.

[dmallind]

2. Nah - airlines are simply capital equipment and workers

If every single plane disappeared today we'd be back flying again within weeks, and back fully scheduled within a couple years tops as new airlines appeared, hired the employees of the old ones and Boeing/Airbus/etc ramped up production. If all airlines disappeared and left the planes (which is more germane) all it would take is an auction for their assets and we're back.

Banks are different in that they hold the debt and savings of millions of people, and if big banks collapse so do both debt and savings. If airlines collapse we just fly on metal tubes painted a different color scheme next week.