Biden administration and Judge Young block Spirit-JetBlue merger
Updated
Updated · The Wall Street Journal · May 7
Biden administration and Judge Young block Spirit-JetBlue merger
10 articles · Updated · The Wall Street Journal · May 7
In a Wall Street Journal letter, former Delta executive Ben Hirst said the decision stopped the airlines from combining to challenge larger network carriers.
He argued major airlines can match low-cost fares on hub routes because premium-ticket revenue covers flight costs, limiting carriers like Spirit despite their lower operating costs.
Hirst said deregulation increased flights, destinations and lower real fares, and contended mergers, alliances and network growth have been central to airline competition’s evolution.
With Spirit Airlines gone, was blocking its merger a fatal blow to low-cost air travel in America?
Does Spirit's collapse signal that the fundamental promise of airline deregulation for robust competition has ultimately failed?
As legacy airlines dominate hubs, can foreign LCC strategies offer a survival blueprint for America's remaining budget carriers?