JetBlue merger
11-03-2023, 05:36 PM
#421
Gets Weekends Off
Joined APC: Sep 2014
Position: Da Bus, Left
Posts: 1,548
11-03-2023, 05:56 PM
#425
Gets Weekends Off
Joined APC: Aug 2007
Posts: 2,010
The market seems to think it’ll fail based on how SAVE has been trending. JBLU was up 12% today, not what we should be seeing if it was trending towards a successful outcome in court for the merger. There’s no way to tell based on some guy in the courtroom tweeting.
11-03-2023, 09:25 PM
#429
Line Holder
Joined APC: Jun 2018
Posts: 50
The DOJ can't make that point. What you're describing is predatory pricing which is illegal. And this would open the DOJ to questions on why they haven't pursued legal action against the Big 3 and anyone else who sells Basic Economy.
Further, it could be argued that Spirit is no longer a going concern due to the predatory pricing that the DOJ has ignored for so many years. The DOJ's lack of enforcement has forced Spirit to seek a merger partner, and therefore the DOJ is the cause of this merger.
Looking forward to hearing your counter to that argument.
Further, it could be argued that Spirit is no longer a going concern due to the predatory pricing that the DOJ has ignored for so many years. The DOJ's lack of enforcement has forced Spirit to seek a merger partner, and therefore the DOJ is the cause of this merger.
Looking forward to hearing your counter to that argument.
It is not predatory pricing for the legacy carriers to adjust their pricing in response to ULCC competition. In fact, that is the very basis of their argument that Spirit must not be allowed to merge with JetBlue because that will decrease competition, which will necessarily cause an increase in prices. That is how a market works.
As for JB/Spirit attorneys arguing that the DOJ is advocating predatory pricing: JB/Spirit are on trial, not the legacy carriers. Would it serve their clients' interests to concede in part to the government's case and argue to the judge that prices are definitely lower with Spirit in existence, and will surely rise with Spirit's demise, but that's okay because the legacies are engaging in predatory pricing (unproven)?
As for the going-concern argument, the government has already argued that is balderdash given the fact that Sprit has been one of the fastest growing airlines lately.
The remainder of the trial will be interesting.
Thread
Thread Starter
Forum
Replies
Last Post
