I didn't see it in the article, but I suspect one factor here is the percent overlap between Spirit and JetBlue, which is about 11% I think. In contrast to the proposed acquisition of Hawaii Air...
I didn't see it in the article, but I suspect one factor here is the percent overlap between Spirit and JetBlue, which is about 11% I think. In contrast to the proposed acquisition of Hawaii Air by Alaska Air, which has an overlap of 3%.
So I suspect it is a combination of dramatic decrease in ultra low rate options, and a decrease in competitiveness in that 11% route overlap.
I personally don't fly Spirit and have only had bad experiences with JetBlue, but I'm having mixed feelings about this. Spirit is obviously not doing great as a company, but should it be forced to...
I personally don't fly Spirit and have only had bad experiences with JetBlue, but I'm having mixed feelings about this. Spirit is obviously not doing great as a company, but should it be forced to exist? I don't know too much about law or economics tbh so I'm curious about what other people think.
“JetBlue plans to convert Spirit’s planes to the JetBlue layout and charge JetBlue’s higher average fares to its customers,” U.S. District Court Judge William Young wrote in his decision. “The elimination of Spirit would harm cost-conscious travelers who rely on Spirit’s low fares.”
Spirit shares plunged after the ruling and ended the day down 47%, while JetBlue’s stock gained about 5%.
This is a very confusing decision to me. Anyone that’s flown Spirit or Frontier will tell you that typically the prices aren’t much cheaper by the time you add all the fees. Now Spirit isn’t doing...
This is a very confusing decision to me. Anyone that’s flown Spirit or Frontier will tell you that typically the prices aren’t much cheaper by the time you add all the fees.
Now Spirit isn’t doing great financially so now that this merger is blocked due to concerns of rising fairs what stops Spirit themselves from deciding “hey - these prices aren’t working - we need to increase them”.
By them continuing to exist, even if they raise prices, in the 11% of non-stop routes overlapped by the two carriers, there will continue to be increased competition for prices.
By them continuing to exist, even if they raise prices, in the 11% of non-stop routes overlapped by the two carriers, there will continue to be increased competition for prices.
Yeah that makes sense. Overall just kinda a weird situation all around, thanks for your input though! It feels like prices are gonna go up regardless, which sucks for people in general.
Yeah that makes sense. Overall just kinda a weird situation all around, thanks for your input though! It feels like prices are gonna go up regardless, which sucks for people in general.
I didn't see it in the article, but I suspect one factor here is the percent overlap between Spirit and JetBlue, which is about 11% I think. In contrast to the proposed acquisition of Hawaii Air by Alaska Air, which has an overlap of 3%.
So I suspect it is a combination of dramatic decrease in ultra low rate options, and a decrease in competitiveness in that 11% route overlap.
I personally don't fly Spirit and have only had bad experiences with JetBlue, but I'm having mixed feelings about this. Spirit is obviously not doing great as a company, but should it be forced to exist? I don't know too much about law or economics tbh so I'm curious about what other people think.
This is a very confusing decision to me. Anyone that’s flown Spirit or Frontier will tell you that typically the prices aren’t much cheaper by the time you add all the fees.
Now Spirit isn’t doing great financially so now that this merger is blocked due to concerns of rising fairs what stops Spirit themselves from deciding “hey - these prices aren’t working - we need to increase them”.
I guess this is just the lesser of two “evils”.
By them continuing to exist, even if they raise prices, in the 11% of non-stop routes overlapped by the two carriers, there will continue to be increased competition for prices.
Yeah that makes sense. Overall just kinda a weird situation all around, thanks for your input though! It feels like prices are gonna go up regardless, which sucks for people in general.