Originally Posted by
king10pin02
how would it be hypocrisy? they are attempting to block a merger that would admittedly(by jblu) raise ticket prices significantly VS one that probably wouldnt raise them for the consumers
One of the governments main arguments is that on the few routes remaining that JB and NK compete on there will be a reduction of competition as NK is removed from the market. JB and NK compete on less than 10% of their routes.
On the other hand, NK and F9 compete on nearly 50% of their routes.
When like business models merge the point is to reduce competition with one another, increase market share, and get more pricing power over the consumer, among other benefits. All of that means less competition (on a much larger scale than the JB+NK merger) and higher prices. NK and F9 are both seeing margin pressures from the demand side, make no mistake they would use the merger to raise prices in the markets that are consolidated.