ANCHOR QUESTION OFF-CAMERA (ENGLISH) SAYING:

Craig, before we look at the broader implications, what does it mean for the two companies involved if this deal doesn't go through? Do US Air and American survive?

CRAIG HODGES, PRESIDENT OF HODGES CAPITAL MANAGEMENT (ENGLISH) SAYING:

Yeah, they survive. I think it's a harder time for American. You know, they had gone to their, of course, their board and their unions and approved this merger and so it's been quite a step for them. If it doesn't go through, they'll survive in some form but it'll be a long road I think. US Air I think will be fine. In fact, it will be a much smaller airline but extremely profitable airline. I think as we speak now they're supposed to earn over $3-a-share without the merger, so I would think that at $15, $16, it's a very inexpensive stock. You know, it's curious, airlines had seem to be recovering, but then the industry as a whole started dropping even before this news. Of course, oil prices are rising which is never a help.

ANCHOR QUESTION OFF-CAMERA (ENGLISH) SAYING:

But is that an indication to pull back from the entire sector for now and just dump shares if you own them?

CRAIG HODGES, PRESIDENT OF HODGES CAPITAL MANAGEMENT (ENGLISH) SAYING:

I'm sure that you've had a lot of- you know, a lot of money has been made. We bought US Air stock in single digits. I think we have a cost of at around $8-a-share, so it's done extremely well. But it's a new game in the airline business and you know, this is an industry that's never earned its cost-to-capital and they've really over the last four, five years resized the industry and started running the operations much more efficiently. And it's had a rebirth and there's real opportunities we feel from here in the airline business.

ANCHOR QUESTION OFF-CAMERA (ENGLISH) SAYING:

What about an opportunity if a surviving US Air/American company comes to be? You mentioned US Air's earnings, would that combined company - if it happens - be a good investment?

CRAIG HODGES, PRESIDENT OF HODGES CAPITAL MANAGEMENT (ENGLISH) SAYING:

I think so. I think it'd be the powerhouse of all the airlines if it went through.

If you look at each individual's route structure and lay them together, it fits like a puzzle and it would make a lot of sense. I'm really perplexed why the DOJ would do this, this doesn't make much sense to me. I see only one or possibly two airports where they would- where market share would even go up that much and it's a very small percent. So you know, I'm actually a little bit more optimistic than a lot of people out there that it will go through. I think it makes a lot of sense that it should.