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Awaiting cheers or jeers from RallyPoint users about DOJ under Biden attempting to stop a major airliner merger...
Biden Admin Sues To Block JetBlue & Spirit Merger
Posted from onemileatatime.com
Joe Biden
DOJ
Posted 1 y ago
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LTC Eugene Chu
..."Last year, JetBlue torpedoed a deal between Spirit and Frontier Airlines, then beat Frontier in a bidding war. Frontier CEO Barry Biffle argued that regulators would block a JetBlue-Spirit deal but not a tie-up with his airline, a similar discount carrier.
To counter Biffle’s argument, JetBlue agreed to pay Spirit shareholders $400 million plus $70 million to the company if the merger dies for antitrust reasons.
The largest union for flight attendants, the Association of Flight Attendants, reiterated its support for the merger Tuesday, which it said would lift pay and benefits for Spirit crews that it represents.
But the American Economic Liberties Project, which opposes corporate consolidation, praised the Justice Department for seeking to block the deal, saying it would let JetBlue “gobble up a low-cost competitor” and boost prices.
New York, Massachusetts and the District of Columbia joined the federal lawsuit. Florida dropped its review of the merger after the airlines agreed to expand in Fort Lauderdale, Orlando and other airports in the state."
..."Last year, JetBlue torpedoed a deal between Spirit and Frontier Airlines, then beat Frontier in a bidding war. Frontier CEO Barry Biffle argued that regulators would block a JetBlue-Spirit deal but not a tie-up with his airline, a similar discount carrier.
To counter Biffle’s argument, JetBlue agreed to pay Spirit shareholders $400 million plus $70 million to the company if the merger dies for antitrust reasons.
The largest union for flight attendants, the Association of Flight Attendants, reiterated its support for the merger Tuesday, which it said would lift pay and benefits for Spirit crews that it represents.
But the American Economic Liberties Project, which opposes corporate consolidation, praised the Justice Department for seeking to block the deal, saying it would let JetBlue “gobble up a low-cost competitor” and boost prices.
New York, Massachusetts and the District of Columbia joined the federal lawsuit. Florida dropped its review of the merger after the airlines agreed to expand in Fort Lauderdale, Orlando and other airports in the state."
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Like the author, I'm of two minds.
Yeah for the DOJ - more competition and ultra low-cost carriers the better. As he said, if the merger goes through, only Allegiant and Frontier are left as the major players in that market.
Boo for the DOJ - Picking and choosing? Why didn't you do this before with American and US Airways? Delta and Northwest? United and Continental? They were all facing the same questions back then - less competition leading to higher fare rates.
Time to pull out the crystal ball and see what will be the best for the consumer overall.
Yeah for the DOJ - more competition and ultra low-cost carriers the better. As he said, if the merger goes through, only Allegiant and Frontier are left as the major players in that market.
Boo for the DOJ - Picking and choosing? Why didn't you do this before with American and US Airways? Delta and Northwest? United and Continental? They were all facing the same questions back then - less competition leading to higher fare rates.
Time to pull out the crystal ball and see what will be the best for the consumer overall.
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