US Sues to stop JetBlue/Spirt Merger
03-07-2023, 08:19 AM
#1
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US Sues to stop JetBlue/Spirt Merger
https://apnews.com/article/consolida...1e2c8632b21d0b
The Attorney General is scheduled to hold a news conference today about this (Tuesday).
The Attorney General is scheduled to hold a news conference today about this (Tuesday).
03-07-2023, 08:31 AM
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Ultimately you do need an ULCC like Spirit out there keeping the prices in check. Just think, the big 3 only have a fare called “Basic Economy” because of pressure to compete with Spirit and the like. In a way this is a testament to how good of a job Spirit has done at keeping its competitors on their toes. So much so that the government now finds their existence necessary. I predict the DOJ is successful here. Just my .02
03-07-2023, 08:52 AM
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When was the last time an airline merger was truly blocked?
The NWA/DAL merger in 2008 went this route, but after some assurances and horse trading, it went through anyway.
This is most likely just a negotiation.
Most "trust busting" in recent decades has usually just resulted in large fines, not actual company break ups or denial of mergers.
The NWA/DAL merger in 2008 went this route, but after some assurances and horse trading, it went through anyway.
This is most likely just a negotiation.
Most "trust busting" in recent decades has usually just resulted in large fines, not actual company break ups or denial of mergers.
03-07-2023, 08:59 AM
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Originally Posted by DeltaboundRedux
When was the last time an airline merger was truly blocked?
The NWA/DAL merger in 2008 went this route, but after some assurances and horse trading, it went through anyway.
This is most likely just a negotiation.
Most "trust busting" in recent decades has usually just resulted in large fines, not actual company break ups or denial of mergers.
The NWA/DAL merger in 2008 went this route, but after some assurances and horse trading, it went through anyway.
This is most likely just a negotiation.
Most "trust busting" in recent decades has usually just resulted in large fines, not actual company break ups or denial of mergers.
03-07-2023, 09:23 AM
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If the combination were to make the number 1 or 2 largest carrier I could see the point. To make a DISTANT 5th largest GMAFB.
And spirit can make their business model whatever they want. They haven’t always been a ULCC. What if spirit decided to make themselves an all premium stand alone airline, would the DOJ and DOT see things differently to combine and make a larger low cost JetBlue?
And spirit can make their business model whatever they want. They haven’t always been a ULCC. What if spirit decided to make themselves an all premium stand alone airline, would the DOJ and DOT see things differently to combine and make a larger low cost JetBlue?
03-07-2023, 09:31 AM
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Originally Posted by Noisecanceller
If the combination were to make the number 1 or 2 largest carrier I could see the point. To make a DISTANT 5th largest GMAFB.
And spirit can make their business model whatever they want. They haven’t always been a ULCC. What if spirit decided to make themselves an all premium stand alone airline, would the DOJ and DOT see things differently to combine and make a larger low cost JetBlue?
And spirit can make their business model whatever they want. They haven’t always been a ULCC. What if spirit decided to make themselves an all premium stand alone airline, would the DOJ and DOT see things differently to combine and make a larger low cost JetBlue?
03-07-2023, 10:35 AM
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Originally Posted by PineappleXpres
Not to mention. There is still Frontier whose growth will accelerate and it leaves the door for at least one of Allegiant/Avelo/Breeze/Sun Country to fill that void.
03-07-2023, 11:40 AM
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Originally Posted by turbojet28
Frontiers growth is incapable of “accelerating”. There are massive constraints on both labor and airplane deliveries.
A serious problem for the “smaller” airlines in this climate.
But those are market forces at work, and NOT government regulation/constraints holding them
back.
03-07-2023, 02:19 PM
#9
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Originally Posted by Noisecanceller
If the combination were to make the number 1 or 2 largest carrier I could see the point. To make a DISTANT 5th largest GMAFB.
And spirit can make their business model whatever they want. They haven’t always been a ULCC. What if spirit decided to make themselves an all premium stand alone airline, would the DOJ and DOT see things differently to combine and make a larger low cost JetBlue?
And spirit can make their business model whatever they want. They haven’t always been a ULCC. What if spirit decided to make themselves an all premium stand alone airline, would the DOJ and DOT see things differently to combine and make a larger low cost JetBlue?
03-07-2023, 07:11 PM
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Originally Posted by El Peso
Ultimately you do need an ULCC like Spirit out there keeping the prices in check. Just think, the big 3 only have a fare called “Basic Economy” because of pressure to compete with Spirit and the like. In a way this is a testament to how good of a job Spirit has done at keeping its competitors on their toes. So much so that the government now finds their existence necessary. I predict the DOJ is successful here. Just my .02
Also the big 3 don't really compete with Spirit, yeah they offer basic economy but NK is not seen as competition or even a threat in any form. Most of NKs pax outside of Florida would not magically start flying basic economy on DL if the airline suddenly disappeared.
One word... greyhound
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