Send you mom over to clean it, troll.

 

The Q3 loss by both NK and B6, regardless of the reason supports the argument for consolidation/acquisition and mergers. The DOJ would have a leg to stand on if both companies were turning record profits, distributing dividends, and buying back shares. But that is simply not the case...these companies operate on razor thin margins. The airline industry since deregulation has lived and died though various consolidations over time, it is now a part of the natural business cycle. If you try to look through the lens of Judge Young (a Reagan appointed conservative), this is about Business's competing to survive and make a profit, not about some Administration's agenda to offer low fares to the entire population at a corporate loss. Companies can offer low fares all day, but if they don't turn a profit, it's Chapter 11 or Chapter 7 time. It just doesn't make sense to block this merger for some government agenda, if so, then bring back regulation.

Airlines are public companies that operate for a profit for it's shareholders, investors and employee's. This is no longer a regulated industry, therefore, IMHO Judge Young will see this for what it really is: It's about two corporations doing what they do to survive and be profitable, while offering a quality, low fare product to the consumer that can compete with the BIG 4. My .02 cents.

 

I'm Really hoping the Judge agrees with you because I want this merger BUT Antitrust Laws are not about doing what will help both companies, it's about protecting the US Consumer and ensuring they don't have less competition. I guess the argument can be made that if merger Is not allowed it could potentialy hurt the consumers? I dunno Either way it's pretty absurd that AA/US Airways. NWA/DAL and UAL/CAL are all allowed to merge but the Buck stops with Tiny Spirit and relatively Small JB. Laughable

 

Well said. And I agree with your thoughts on Judge Young; he is way too experienced to be swayed by the false narrative that a company will need to go out of business in order to provide cheaper airfare.

 

I agree completely with everything you just stated. At the end of the day, it’s seems like a no-brainer that this merger gets approved. Consolidation is happening in most industries….thats just what it takes to survive now.

 

If the government is so obsessed with low ticket prices why don’t they buy blocks of seats on every flight operated in the US and resell them for $29 like any other Expedia type site would do?

 

And there lies the insanity and the problem with a certain segment of the population; something for nothing . You want guaranteed low fares, then subsidize, if not, then step aside for the free market.

 

And that is the fundamental argument. The DOJ says relevant market is a specific city pair where two airlines currently compete. Jetblue says relevant market has to be taken in the totality of the industry.

 

Darn, either a little edgy or haven't been in this game long.

Every time someone "foresees doom and gloom" in this industry, people usually post long treatises on why pilots should "get their house in order".

My joke was to respond to the poster who said both companies were F'd if the merger doesn't get approved, when no one really knows, if they are F'd if the merger does go through.....

 

And yet there are elements of this same administration that would love for air travel to be severely curtailed, cost $1000's in taxes and be limited to like 3 R/T's per individual lifetime, like they are proposing in France, all in the name of saving the planet.