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Judge blocks JetBlue from acquiring Spirit Airlines

nytimes.com

11–20 of 121 posts

Re: Judge blocks JetBlue from acquiring Spirit Airlines

#11
post #4

If Alaska acquires Hawaiian then this would have to be decided ultimately by SCOTUS right? I would think these two cases are too similar and there needs to be some fairness and consistency in the rulings.

I'm probably oversimplifying, but Alaska + Hawaiian creates a larger regional competitor to e.g American, United, and Southwest on a more local scale where most of their routes are complimentary (the two weren't substantially competing; Alaska offers a handful of CONUS to Hawaii routes, whereas Hawaiian offers CONUS as well as international routes to/from Hawaii), whereas JetBlue acquiring Spirit consolidates nationw…

The problem is that Spirit is but going to survive 2024. Between their debt situation and a number of their A320 Neos about to be grounded thanks to a Pratt and Whitney eff-up, they won't be around long enough to keep anything competitive.

Re: Judge blocks JetBlue from acquiring Spirit Airlines

#12
post #4

Earlier quoted context omitted.

I'm probably oversimplifying, but Alaska + Hawaiian creates a larger regional competitor to e.g American, United, and Southwest on a more local scale where most of their routes are complimentary (the two weren't substantially competing; Alaska offers a handful of CONUS to Hawaii routes, whereas Hawaiian offers CONUS as well as international routes to/from Hawaii), whereas JetBlue acquiring Spirit consolidates nationw…

It would probably still have an effect of raising prices for flights to/from Hawaii no?

That's easy enough to address with selling off Hawaii slots.

To put this in perspective, 60 out of 566 JetBlue and Spirit routes overlap. Alaska and Hawaiian share 12 routes out of 336.

Re: Judge blocks JetBlue from acquiring Spirit Airlines

#13
post #4

Earlier quoted context omitted.

I'm probably oversimplifying, but Alaska + Hawaiian creates a larger regional competitor to e.g American, United, and Southwest on a more local scale where most of their routes are complimentary (the two weren't substantially competing; Alaska offers a handful of CONUS to Hawaii routes, whereas Hawaiian offers CONUS as well as international routes to/from Hawaii), whereas JetBlue acquiring Spirit consolidates nationw…

The problem is that Spirit is but going to survive 2024. Between their debt situation and a number of their A320 Neos about to be grounded thanks to a Pratt and Whitney eff-up, they won't be around long enough to keep anything competitive.

If this is the case, then an acquisition to prevent a competitor from going bankrupt should generally not be anti-competitive? Since, they would no longer be your competition anyways?

Re: Judge blocks JetBlue from acquiring Spirit Airlines

#15
post #9
post #6

This is a bad ruling, Spirit is likely to go under without acquisition. Neither firm had particularly large share of market.

If this is true, then this is probably a great ruling for JetBlue; they can buy up the scraps at bankruptcy if Spirit liquidates.

Why would they have offered to buy them in the first place then?

Re: Judge blocks JetBlue from acquiring Spirit Airlines

#16
post #6

This is a bad ruling, Spirit is likely to go under without acquisition. Neither firm had particularly large share of market.

This is the only thing that ever happens in my brain when I hear Spirit airlines now.

https://www.youtube.com/watch?v=HTkr2AxC2eI

Re: Judge blocks JetBlue from acquiring Spirit Airlines

#17
post #6

This is a bad ruling, Spirit is likely to go under without acquisition. Neither firm had particularly large share of market.

This is the only thing that ever happens in my brain when I hear Spirit airlines now. https://www.youtube.com/watch?v=HTkr2AxC2eI

I'm about to board my first spirit flight after Southwest ruined my return flight

Re: Judge blocks JetBlue from acquiring Spirit Airlines

#18
post #9

Earlier quoted context omitted.

If this is true, then this is probably a great ruling for JetBlue; they can buy up the scraps at bankruptcy if Spirit liquidates.

Why would they have offered to buy them in the first place then?

They didn’t want to wait.

Re: Judge blocks JetBlue from acquiring Spirit Airlines

#19
post #17

Earlier quoted context omitted.

This is the only thing that ever happens in my brain when I hear Spirit airlines now. https://www.youtube.com/watch?v=HTkr2AxC2eI

I'm about to board my first spirit flight after Southwest ruined my return flight

I'm sure it'll be fine. Uncomfortable, but fine.

Re: Judge blocks JetBlue from acquiring Spirit Airlines

#20
post #9

Earlier quoted context omitted.

If this is true, then this is probably a great ruling for JetBlue; they can buy up the scraps at bankruptcy if Spirit liquidates.

Why would they have offered to buy them in the first place then?

Frontier made an offer for Spirit.
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