JetBlue purchase of Spirt
08-03-2022 | 06:42 AM
#101
Line Holder
Joined: Mar 2015
Posts: 32
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Exactly it’s pretty clear that over 150 airplanes the ULCC model isn’t really viable. You can’t run bare bones support for that many airplanes and run a reliable operation or pay for support and run a profitable business. You can’t do both at this size or larger.
The DOJ can complain that JetBlue is removing a low cost carrier from the mix but if that carrier isn’t a viable business on its own it wouldn’t exist for a long term anyway
The DOJ can complain that JetBlue is removing a low cost carrier from the mix but if that carrier isn’t a viable business on its own it wouldn’t exist for a long term anyway
Valid points but no airline, no matter the flavor is a viable business model! Been proven since they started. One of the worst run industries ever. SWA has probably done it the best but even they are not immune from bad management.
08-03-2022 | 01:51 PM
#102
New Hire
Joined: Mar 2022
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08-03-2022 | 06:44 PM
#103
Gets Weekends Off
Joined: Jan 2008
Posts: 4,629
Likes: 15
From: blueJet
08-04-2022 | 05:07 AM
#104
Gets Weekends Off
Joined: May 2010
Posts: 429
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08-07-2022 | 08:39 PM
#106
Line Holder
Joined: Sep 2020
Posts: 1,591
Likes: 373
Its not the 9% that matters. Its the overlap in specific markets. DOJ looks market-by-market. They may allow the merger, but there will be stipulations that certain gates/slots be given up to competitors in certain markets. Mostly likely NYC and FL markets.
08-07-2022 | 09:48 PM
#107
Line Holder
Joined: Aug 2020
Posts: 77
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From: Boeing 737 CA
The combined spirits/JetBlue will still be smaller in NYC than Delta. Why would they be giving up gates?
08-08-2022 | 10:31 AM
#108
Line Holder
Joined: Jul 2018
Posts: 91
Likes: 0
It will really depend on the conclusion the courts come to over the NEA this fall. JBU/AA are bigger than Delta and United in NY. If JBU loses the NEA then they won't really give up any Spirit gates or slots. It's all posturing.
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