Spirit has 46% of ULCC lift in the US. It would take 5 years to replace that capacity from the other ULCCs. JetBlue planned on eliminating 11% of the seats on the aircraft. According to basic laws of economics, what happens when you drastically reduce supply?

 

What happens to supply when one of them goes bankrupt and the other lays off?

 

Generally prices go up when you restrict supply, obviously. However, it's less obvious what effect it would have in this particular instance in a growing industry with growing companies.

But what happens to the consumer (nevermind the employees), if the DOJ actions weaken both companies and potentially drives one into Bankruptcy. How can that possibly be "good for the consumer"? I think that's the point.

 

It wasn’t the previous admin. It was the current admin. You ate both incorrect. Both of you were just trying to score political points. Both making up history. Show evidence of a national lockdown enacted by any administration?

 

If tomorrow NK announces it will transform into a Breeze/ JetBlue style product should the DOJ step in and tell them they are not allowed to do that because it might take seats out of the market?

we will see how many of those seats stay in the ULCC market. I think more than 11% will leave. The likely outcome is NK will shrink (or might even go to BK) and the big 4 will grow. And it will be because of the DOJ.

jetblue has a product that can compete with the legacies, spirit does not. JetBlue had 3X the effect NK did on lowering prices of big 4 competition. The DOJ decided to harm the competition to the big 4 in the name of anti trust legislation.

and all of that is irrelevant anyway because you said the current admin had nothing to do with the current woes of NK and B6 when they are DIRECTLY responsible for not allowing those two airlines to compete with the big 4.

 

If one of them goes bankrupt then they didn't have a viable business. The free market will adjust to accommadate the failure. The ULCC model has been failing for awhile now and the merger would have killed it too. B6 didn't seem all that upset about it knowing those assets could still be aquired at probably less cost.

 

I personally can’t wait for November so all the negative Nancies will stop talking about recession and start talking about how Great things are Again

 

oh don't worry, no matter who wins there will be howls of discontent from at least 40% of the population.

 

No but NK pilots and shareholders might have enjoyed significant benefit from the biden-blocked merger, so that much is true.

 

Party of law and order. #hurdur