2024: the "Frontier will buy Spirit" theory
02-26-2024, 02:27 AM
#71
Gets Weekends Off
Joined APC: Nov 2015
Posts: 1,520
From the DOJ press release:
https://www.justice.gov/opa/pr/justice-department-statements-district-court-decision-block-jetblues-acquisition-spirit
Anticompetitive. Hold that thought, lets look at the Clayton Act
https://www.justice.gov/atr/antitrust-laws-and-you
What exactly is "anticompetitive"
Harvard Law journal: https://harvardlawreview.org/forum/vol-130/antitrust-law-is-not-that-complicated/
They define it as:
In other words, offering a better quality widget, with better customer service, thus resulting in increased profits because you charge more, but the customer still comes because he thinks you are better, is not anticompetitive. That is "business 101."
But Merging with a competitor, resulting in your ability to be the only guy in town, and potentially increase prices whenever you want, is anticompetitive.
Knowing what we know now, the courts will not permit a super ULCC to exist
https://www.justice.gov/opa/pr/justice-department-statements-district-court-decision-block-jetblues-acquisition-spirit
Anticompetitive. Hold that thought, lets look at the Clayton Act
https://www.justice.gov/atr/antitrust-laws-and-you
What exactly is "anticompetitive"
Harvard Law journal: https://harvardlawreview.org/forum/vol-130/antitrust-law-is-not-that-complicated/
They define it as:
In other words, offering a better quality widget, with better customer service, thus resulting in increased profits because you charge more, but the customer still comes because he thinks you are better, is not anticompetitive. That is "business 101."
But Merging with a competitor, resulting in your ability to be the only guy in town, and potentially increase prices whenever you want, is anticompetitive.
Knowing what we know now, the courts will not permit a super ULCC to exist
The reality is the govt can and will choose winners and losers. I would think a larger, more stable ULCC would have a better shot. That’s all
02-26-2024, 06:43 AM
#72
Gets Weekends Off
Joined APC: Feb 2014
Position: Lineholder
Posts: 1,425
Couple of common sense but specualtive viewpoints (doesn't necessarily mean they will win but):
F9 should re-attempt to purhase NK. It makes no sense not to as the price will be MUCH cheaper w/ essentially no competition. All that can be said is No. F9 already was paid millions when it didn't go thru before so it's not like they'll be losing $ in the process.
Also, it's pretty obvious that there WILL BE ONLY 1 ULCC in the near future. NK is all but out of business already so using the argument of competition falls flat. Why not make a bigger ULCC to create more routes that will lower prices of the Big 4. The mass exodus in already on over there but not everyone is gonna get hired elsewhere and although many at NK shudder at working for Franke/Biffle again, it beats being on the street.
This actually may be a blessing for us (all labor) given that a purchase means we'll want to strengthen our stock value (instead of the purposeful weakening we've been doing). Greater stock value means we'll actually need to start offering better customer service and start acting more like we care about running an airline. Not to mention, a bigger airline also lends credit to being better paid.
As Confusious said - "May you live in interesting times."
02-26-2024, 09:59 AM
#73
Gets Weekends Off
Thread Starter
Joined APC: Mar 2021
Posts: 1,312
I agree.
Couple of common sense but specualtive viewpoints (doesn't necessarily mean they will win but):
F9 should re-attempt to purhase NK. It makes no sense not to as the price will be MUCH cheaper w/ essentially no competition. All that can be said is No. F9 already was paid millions when it didn't go thru before so it's not like they'll be losing $ in the process.
Also, it's pretty obvious that there WILL BE ONLY 1 ULCC in the near future. NK is all but out of business already so using the argument of competition falls flat. Why not make a bigger ULCC to create more routes that will lower prices of the Big 4. The mass exodus in already on over there but not everyone is gonna get hired elsewhere and although many at NK shudder at working for Franke/Biffle again, it beats being on the street.
This actually may be a blessing for us (all labor) given that a purchase means we'll want to strengthen our stock value (instead of the purposeful weakening we've been doing). Greater stock value means we'll actually need to start offering better customer service and start acting more like we care about running an airline. Not to mention, a bigger airline also lends credit to being better paid.
As Confusious said - "May you live in interesting times."
Couple of common sense but specualtive viewpoints (doesn't necessarily mean they will win but):
F9 should re-attempt to purhase NK. It makes no sense not to as the price will be MUCH cheaper w/ essentially no competition. All that can be said is No. F9 already was paid millions when it didn't go thru before so it's not like they'll be losing $ in the process.
Also, it's pretty obvious that there WILL BE ONLY 1 ULCC in the near future. NK is all but out of business already so using the argument of competition falls flat. Why not make a bigger ULCC to create more routes that will lower prices of the Big 4. The mass exodus in already on over there but not everyone is gonna get hired elsewhere and although many at NK shudder at working for Franke/Biffle again, it beats being on the street.
This actually may be a blessing for us (all labor) given that a purchase means we'll want to strengthen our stock value (instead of the purposeful weakening we've been doing). Greater stock value means we'll actually need to start offering better customer service and start acting more like we care about running an airline. Not to mention, a bigger airline also lends credit to being better paid.
As Confusious said - "May you live in interesting times."
However BB is not going to announce any merger/buy out/etc of Spirit until Spirit walks up the courthouse steps and files bankruptcy. Bankruptcy will nullify their union contracts and other stuff.
It will also nullify the governments argument that joining Spirit (well, them joining Frontier) will result in "one ULCC." Once bankrupt, one ULCC is going to happen anyway.
02-26-2024, 06:41 PM
#74
Gets Weekends Off
Joined APC: Nov 2012
Position: 1900D CA
Posts: 3,476
I agree with all of the above.
However BB is not going to announce any merger/buy out/etc of Spirit until Spirit walks up the courthouse steps and files bankruptcy. Bankruptcy will nullify their union contracts and other stuff.
It will also nullify the governments argument that joining Spirit (well, them joining Frontier) will result in "one ULCC." Once bankrupt, one ULCC is going to happen anyway.
However BB is not going to announce any merger/buy out/etc of Spirit until Spirit walks up the courthouse steps and files bankruptcy. Bankruptcy will nullify their union contracts and other stuff.
It will also nullify the governments argument that joining Spirit (well, them joining Frontier) will result in "one ULCC." Once bankrupt, one ULCC is going to happen anyway.
I wonder if there's a possibility that if NK does go into bankruptcy (which i personally don't think will happen) a situation could arise where Indigo is able to play our labor groups against each other?
If NK goes chapter 11, they will try and get pay cuts and contact gutting and then they could try and do the other RJ whipsaw thing and play us against them.
02-28-2024, 08:27 AM
#75
Gets Weekends Off
Joined APC: Jan 2008
Posts: 533
Outsider opinion, but if the “argument of competition falls flat” then there is no argument in appeal and B6/NK happens.
02-28-2024, 10:28 AM
#76
Gets Weekends Off
Joined APC: Feb 2014
Position: Lineholder
Posts: 1,425
Thread
Thread Starter
Forum
Replies
Last Post
