
Poplicola
856 posts

Poplicola
@Codex_Foederis
Haec veritates per se notas habemus



Biden took the unprecedented step of using the Dept. of Transportation AND the DOJ to block a merger of JetBlue and faltering Spirit. That block and high fuel prices have led to Spirit’s demise. Here I am in 2023 grilling Sec. Buttigieg about the block: m.youtube.com/watch?v=IC-eRF…


@CGasparino @SpiritAirlines @JoeBiden @PeteButtigieg Antitrust regulators aren’t supposed to approve mergers just because one company has a weak business model. Their job is to evaluate competition and consumer impact. If a business only survives by reducing competition, regulators are going to ask hard questions.


@DouglasLFarrar I continue to be confused by the line of argument you are offering here, is it the FTC’s job to second-guess the business decisions of M&A bankers? Thanks to Spirit going out of business we know for sure that no competition was preserved by blocking the deal.


Spirit Airlines, an impish upstart that shook the industry with its irreverent ads and deep discount fares, announced Saturday that it has gone out of business after 34 years. apnews.com/article/spirit…




I've warned for months that a @JetBlue-@SpiritAirlines merger would have led to fewer flights and higher fares. @JusticeATR and @USDOT were right to stand up for consumers and fight against runaway airline consolidation. This is a Biden win for flyers! apnews.com/article/jetblu…


🚨#BREAKING: Spirit Airlines are preparing to fully shut down after President Donald Trump refused to approve the $500 million taxpayer-funded bailout as the discount carrier ran too low on cash

I've warned for months that a @JetBlue-@SpiritAirlines merger would have led to fewer flights and higher fares. @JusticeATR and @USDOT were right to stand up for consumers and fight against runaway airline consolidation. This is a Biden win for flyers! apnews.com/article/jetblu…

Here's Biden Department of Transportation Secretary Pete Buttigieg bragging about blocking the Spirit Airlines merger with JetBlue that would have saved the airline from bankruptcy. I don't think America has ever had a more incompetent Secretary of Transportation than Mayor Pete.



For perhaps the last time: No one can afford to cheer for Spirit’s demise. Their presence forced other carriers to lower fares for years - yes, even AA, Delta & United. What a sad end to a pioneering airline. Combined with fuel prices, we’re entering a new era of higher fares.

mcp was a mistake.


For perhaps the last time: No one can afford to cheer for Spirit’s demise. Their presence forced other carriers to lower fares for years - yes, even AA, Delta & United. What a sad end to a pioneering airline. Combined with fuel prices, we’re entering a new era of higher fares.


“The business model clearly doesn’t work, Spirit should be allowed to fail.” The problem is this is bigger than Spirit. The question now should be: Why doesn’t the business model work here while low-cost carriers flourish in Europe & Asia? Is there something fundamentally different about American travelers & what they want? Maybe, but not enough. Did US airlines do it worse? Also no, IMO. There are lots of factors (rising costs far beyond jet fuel being a big one) but one differentiator here is entrenched major US airlines have been permitted to dominate hub after hub & loyalty programs (read as: credit card revenue) that dwarf what exists in every other country, allowing big airlines to offset otherwise unprofitable flying. You need scale to truly compete in the airline industry. Major carriers were able to bury Spirit with that scale. There’s a reason why new upstarts like Breeze & Avelo really only fly between second-, third- and fourth-tier cities… As more airlines fail or merge, the big get bigger. This feels like a turning point. It’s only going to get worse. And while the lower cost end of the market vanishes, everyone else is moving upmarket: chasing “premium” travel at higher fares … yet retaining the even higher nickel-and-dime fees you all hate. This isn’t just about Spirit. We’re returning to that so-called “Golden Age of Air Travel” … and I’m not sure consumers are going to like it.







