Merger getting blocked
03-06-2023 | 08:04 AM
#61
Line Holder
Joined: May 2009
Posts: 320
Likes: 1
I couldn't agree more!
Nonsense. When the DOJ has been allowing far bigger mergers for years, and continues to allow joint ventures even with airlines in other nations, they have no justification to even become involved in this.
if Congress wants to PROSPECTIVELY write actual LAWS regulating control of percentages of gates and slots and alliances, both foreign and domestic, that EVERYONE will have to live by, so be it. But if the DOJ is going to be offended by the size of the fifth largest airline then they better be damn well ready to compel the four larger ones to split up just like they once compelled Bell telephone to break up and also then to stop the Big Three from code-sharing with all their regionals and their Joint Venture, Skyteam, and Star Alliance partners. What’s sauce for the goose is sauce for the gander
While it would perhaps be hopelessly optimistic to expect rationality from a government agency, at a minimum one ought to expect consistency.
if Congress wants to PROSPECTIVELY write actual LAWS regulating control of percentages of gates and slots and alliances, both foreign and domestic, that EVERYONE will have to live by, so be it. But if the DOJ is going to be offended by the size of the fifth largest airline then they better be damn well ready to compel the four larger ones to split up just like they once compelled Bell telephone to break up and also then to stop the Big Three from code-sharing with all their regionals and their Joint Venture, Skyteam, and Star Alliance partners. What’s sauce for the goose is sauce for the gander
While it would perhaps be hopelessly optimistic to expect rationality from a government agency, at a minimum one ought to expect consistency.
03-06-2023 | 09:19 AM
#63
SDQ Base Chief
Joined: Mar 2006
Posts: 6,095
Likes: 52
From: 320 CA
*yawn* wake me up when the show is over
https://seekingalpha.com/news/394456...be-in-jeopardy
We have entered Act II: "To merge, or not to merge: that is the question..."
https://en.wikipedia.org/wiki/Three-act_structure
https://seekingalpha.com/news/394456...be-in-jeopardy
Regulators are reportedly looking to block the prospective merger between JetBlue Airways (NASDAQ:JBLU) and Spirit Airlines (NYSE:SAVE), sending shares of the latter sliding.
Both the Department of Transportation and Department of Justice are looking to halt the deal on the grounds that the merger would be anti-competitive, according to Bloomberg.
Per prior media reports, executives from the carriers met with the DOJ in late February in a "last-rites" meeting to assuage regulatory concerns on the planned merger. That meeting followed reports earlier in Februarythat the department was planning to file a suit as early as this month. Per the latest reports, the efforts to shift the DOJ’s stance on the deal were unsuccessful as a suit is indeed due to be filed as soon as Tuesday.
Citing people familiar with the matter, Bloomberg also indicated that the Department of Transportation will launch a parallel proceeding to “block the transfer of Spirit’s airline certificate as incompatible with the public interest.” This is a power the agency hasn’t used since the deregulation of the industry under the Carter administration.
Shares of JetBlue Airways (JBLU) rose 2.22% in afternoon trading while Spirit Airlines (SAVE) stock slumped over 9%before rebounding modestly.
Both the Department of Transportation and Department of Justice are looking to halt the deal on the grounds that the merger would be anti-competitive, according to Bloomberg.
Per prior media reports, executives from the carriers met with the DOJ in late February in a "last-rites" meeting to assuage regulatory concerns on the planned merger. That meeting followed reports earlier in Februarythat the department was planning to file a suit as early as this month. Per the latest reports, the efforts to shift the DOJ’s stance on the deal were unsuccessful as a suit is indeed due to be filed as soon as Tuesday.
Citing people familiar with the matter, Bloomberg also indicated that the Department of Transportation will launch a parallel proceeding to “block the transfer of Spirit’s airline certificate as incompatible with the public interest.” This is a power the agency hasn’t used since the deregulation of the industry under the Carter administration.
Shares of JetBlue Airways (JBLU) rose 2.22% in afternoon trading while Spirit Airlines (SAVE) stock slumped over 9%before rebounding modestly.
https://en.wikipedia.org/wiki/Three-act_structure
Last edited by Flyby1206; 03-06-2023 at 09:57 AM.
03-06-2023 | 10:07 AM
#67
Perennial Reserve
Joined: Jan 2018
Posts: 14,280
Likes: 264
“Power they haven’t used since deregulation…”
That ain’t going to work with a conservative Supreme Court even questioning the Chevron deference doctrine. DOJ needs to cut the best deal they can get with JetBlue, declare victory, and get out of the way.
If they REALLY want to do some good, they can go after the monopolistic practices of Big Pharma.
That ain’t going to work with a conservative Supreme Court even questioning the Chevron deference doctrine. DOJ needs to cut the best deal they can get with JetBlue, declare victory, and get out of the way.
If they REALLY want to do some good, they can go after the monopolistic practices of Big Pharma.
03-06-2023 | 10:17 AM
#68
SDQ Base Chief
Joined: Mar 2006
Posts: 6,095
Likes: 52
From: 320 CA
“Power they haven’t used since deregulation…”
That ain’t going to work with a conservative Supreme Court even questioning the Chevron deference doctrine. DOJ needs to cut the best deal they can get with JetBlue, declare victory, and get out of the way.
If they REALLY want to do some good, they can go after the monopolistic practices of Big Pharma.
That ain’t going to work with a conservative Supreme Court even questioning the Chevron deference doctrine. DOJ needs to cut the best deal they can get with JetBlue, declare victory, and get out of the way.
If they REALLY want to do some good, they can go after the monopolistic practices of Big Pharma.
03-06-2023 | 10:25 AM
#69
Perennial Reserve
Joined: Jan 2018
Posts: 14,280
Likes: 264
If they want political optics, quit this and go after the people selling 30 cents worth of epinephrine and a two dollar pen device for $600 a pair. Of course Sen Manchin’s daughter is CEO of that company, but you can’t make an omelet without breaking a few eggs.
03-06-2023 | 10:47 AM
#70
Line Holder
Joined: Oct 2019
Posts: 1,186
Likes: 35
You keep making too much sense CargoDog. Off hand, do you know of any of the other airline mergers/acquisitions had to do this song and dance? Recent history (Delta/United/American/Alaska)
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