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-   -   Merger getting blocked (https://www.airlinepilotforums.com/jetblue/141589-merger-getting-blocked.html)

MainlineFlyer 08-25-2023 05:18 AM


Originally Posted by PSU Flyer (Post 3687788)
I think you misread the article. I believe the plaintiff’s legal counsel messed up the redaction. Weird how that “mistake” favors their case.

Ah, you are correct. It still begs the question, why is jetblue admitting to a planned 40% rate hike? And why in writing?

symbian simian 08-25-2023 07:43 AM


Originally Posted by MainlineFlyer (Post 3687821)
Ah, you are correct. It still begs the question, why is jetblue admitting to a planned 40% rate hike? And why in writing?

"On a per passenger flight segment basis, compared to the same period in 2022, total revenue per passenger flight segment ("segment") for the second quarter 2023 decreased 8.9 percent to $128.03. Compared to the second quarter 2022, fare revenue per segment decreased 20.1 percent to $57.86 and non-ticket revenue per segment increased 2.9 percent to $70.173." August 2023 Earnings for Spirit.

More than half of NK revenue is not in the ticket price. Didn't see that same break down on the JB.IR site, but I would be very surprised to see ancillary higher than ticket revenue. So to keep total revenue the same, ticket price will go up once we get painted blue. Not exactly shocking news.

golf59 08-25-2023 09:08 AM


Originally Posted by MainlineFlyer (Post 3687821)
Ah, you are correct. It still begs the question, why is jetblue admitting to a planned 40% rate hike? And why in writing?


Because its part of discovery likely.

And this article and many on this board are acting like this is some gotcha. It really isnt. I dont think any one ever thought the price of seats on current Spirit planes wouldnt go up when switching to a Jetblue that charges differently.

The stated goal has always been that we will switch to competing against the big 4 and the combination should help drive overal prices down.

avi8orco 08-25-2023 10:32 AM


Originally Posted by MainlineFlyer (Post 3687692)
So, someone in the company doesnt know how to properly redact in Adobe and it may cost the company $500M.

Only Jetblue...

https://thepointsguy.com/news/jetblu...ling-redacted/

If it can be screwed up, this company mgmt. will find out how to do it….

on another note….spirit flights are known for $40-$70 fares, so a 40% increase means those are now $56 - $98 fares for twice the legroom, TV, internet..when it works:rolleyes:, and a free can of soda and bag cheez-its versus a plastic chair with your knees jammed into the seat in front of you and completely nothing free….WTF do you have to complain about other than being late 70% of the time?

RemoveB4flght 08-25-2023 10:54 AM


Originally Posted by DrSmacFum (Post 3687800)
Interesting timing on a JetBlue lazy hit job:

Spirit Airlines to pay up to $8.25 mln in class action over 'gotcha' carry-on bag fees”


https://www.reuters.com/business/aer...FPpDnhHM6PGSbg


Almost like there is a correlation

So much to unpack here.

The class action plaintiffs were those who bought tickets on third party travel site which did not disclose the ancillary fees. While there may be a case to be made there is shared culpability with those travel site, a settlement often proves less costly in the long run vs. the exposure to punitive damages or other liability.

Biden called out “junk fees” in his address and has called on the house to create legislation against them to protect the consumer, yet his DOJ is working to block a merger which would eliminate most of these fees in the new larger JetBlue. As stated before, nearly half of Spirit revenue is based on these fees, so if the prosecutor is arguing the merger would deny consumers access to a cheaper ticket, but the same government would also seek to stifle the ULCC model, Spirit would be forced to raise ticket prices to match the B6 pricing model anyway, and lose the economy of scale from the merger. You can’t have it both ways.

Neither Spirit nor Frontier could continue to operate with a 40% loss in revenue, and the only way to continue to provide an ultra low cost price to consumers would be some form of subsidies. Let’s use tax payer money to lower the cost of tickets for those same taxpayers, yeah doesn’t make sense to me either.

todd1200 08-25-2023 01:36 PM


Originally Posted by MainlineFlyer (Post 3687821)
Ah, you are correct. It still begs the question, why is jetblue admitting to a planned 40% rate hike? And why in writing?

The document with the redaction errors wasn’t JB’s document, it was the plaintiff’s accusation. There’s no admission of anything. The travel bloggers didn’t know what they were talking about when they rushed to report on this.

Paywall, but the first few lines tell the story:

https://www.law360.com/articles/1714211

todd1200 08-25-2023 01:54 PM

Another part of the plaintiff’s filing that the bloggers missed:

76. The proposed elimination of Spirit may result in the cancellation of Spirit’s order for new aircraft and its concomitant increase in capacity and expansion. JetBlue operates mostly Boeing aircraft. Spirit, on the other hand, operates Airbus and the merger may require the cancellation of all or some of the Airbus aircraft currently on order by Spirit (Spirit Airlines announced its intention to has an order to purchase 100 new Airbus A320neo family aircraft). As a result, if Spirit is eliminated, it is very probable that JetBlue may decide not to operate the new aircraft with which it is unfamiliar, and will cancel Spirit’s pending order for new Airbus planes. JetBlue’s cancellation of the Airbus order may lead to further capacity reductions in the air carrier market and may exacerbate the industry-wide so-called “capacity discipline” agreements among the major airlines that have plagued passengers since the airline mergers began in 2008 and which have served only to drive prices upward - and passenger service and satisfaction downward.


https://storage.courtlistener.com/re...255241.1.0.pdf

Flyby1206 08-25-2023 02:06 PM


Originally Posted by todd1200 (Post 3688095)
Another part of the plaintiff’s filing that the bloggers missed:

76. The proposed elimination of Spirit may result in the cancellation of Spirit’s order for new aircraft and its concomitant increase in capacity and expansion. JetBlue operates mostly Boeing aircraft. Spirit, on the other hand, operates Airbus and the merger may require the cancellation of all or some of the Airbus aircraft currently on order by Spirit (Spirit Airlines announced its intention to has an order to purchase 100 new Airbus A320neo family aircraft). As a result, if Spirit is eliminated, it is very probable that JetBlue may decide not to operate the new aircraft with which it is unfamiliar, and will cancel Spirit’s pending order for new Airbus planes. JetBlue’s cancellation of the Airbus order may lead to further capacity reductions in the air carrier market and may exacerbate the industry-wide so-called “capacity discipline” agreements among the major airlines that have plagued passengers since the airline mergers began in 2008 and which have served only to drive prices upward - and passenger service and satisfaction downward.


https://storage.courtlistener.com/re...255241.1.0.pdf

I knew it, we’re getting 787s

Excargodog 08-25-2023 03:08 PM


JetBlue operates mostly Boeing aircraft.
:rolleyes:

filler
​​​​​​​

avi8orco 08-25-2023 03:31 PM


Originally Posted by todd1200 (Post 3688095)
Another part of the plaintiff’s filing that the bloggers missed:

76. The proposed elimination of Spirit may result in the cancellation of Spirit’s order for new aircraft and its concomitant increase in capacity and expansion. JetBlue operates mostly Boeing aircraft. Spirit, on the other hand, operates Airbus and the merger may require the cancellation of all or some of the Airbus aircraft currently on order by Spirit (Spirit Airlines announced its intention to has an order to purchase 100 new Airbus A320neo family aircraft). As a result, if Spirit is eliminated, it is very probable that JetBlue may decide not to operate the new aircraft with which it is unfamiliar, and will cancel Spirit’s pending order for new Airbus planes. JetBlue’s cancellation of the Airbus order may lead to further capacity reductions in the air carrier market and may exacerbate the industry-wide so-called “capacity discipline” agreements among the major airlines that have plagued passengers since the airline mergers began in 2008 and which have served only to drive prices upward - and passenger service and satisfaction downward.


https://storage.courtlistener.com/re...255241.1.0.pdf

This is done…They’re just throwing random $hit now to see if it sticks. What does it matter if it’s BS that they have no idea what they’re talking about, they’re politicians, SOP.


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