The so called consolidation in the ULCC sector is not really consolidation at all. It is the elimination of it. Only the smaller players are likely to survive. A truly fair and balanced market would require government intervention, with policies designed to create an environment where ULCCs can actually thrive. But the reality is that the government neither understands nor seems interested in doing that.



Meanwhile, the legacy carriers are absolute geniuses in their strategy. No one is stopping their dominance, and the government is clearly not capable of doing so. The JetBlue Spirit tie up blockage is a perfect example. It demonstrates the government’s inability to see the long term consequences of its own decisions. By blocking the merger in an attempt preserve competition sheds light on their ineptitude in understanding the market. They have actually cleared the way for zero real competition, leaving ULCCs increasingly squeezed out of the market.