In July 2022, JetBlue and Spirit announced plans to merge. The Department of Justice is suing to block this merger, arguing that it’s bad for competition, as it would eliminate an ultra low cost carrier. Meanwhile JetBlue has argued that having another competitor to the “big four” (American, Delta, Southwest, and United) will be positive for consumers. Well, along those lines, there’s an interesting update…
In this post:
JetBlue could raise Spirit fares by up to 40%
A major mistake seems to have been made in a document related to a lawsuit involving the Spirit takeover. JetBlue is facing a lawsuit from consumers, and had to send the plaintiff a document with some information.
This included an internal document, where JetBlue blocked out some text. However, through a formatting error, it was possible to copy and paste the text into another document, and see what it said. Well, as it turned out, this wasn’t good news for JetBlue.
Here are a few of the highlights:
- The merger “modelled for price increases and capacity reductions,” by removing an average of 24 seats “from every one of Spirit’s roughly 200 planes”
- “JetBlue plans to increase fares on aircraft it acquires from Spirit by at least 24%,” and this “is a conservative estimate, and that fare increases may be as high as 40%”
- “JetBlue acknowledges that Spirit’s exit from a route results in market-wide price increases of all other airlines serving that route by 30%”
This shouldn’t surprise anyone
Some are suggesting that these quotes are somehow a smoking gun that will definitely cause the merger to be blocked. Okay, admittedly the optics are bad (“we’re going to raise prices!”), and I assume that some will look to score political brownie points for protecting consumers and keeping fares low.
However, personally I don’t think there’s anything particularly scandalous about this admission:
- Sure, base fares on Spirit might go up by 24-40% if Spirit planes join the JetBlue fleet, but that doesn’t necessarily mean people will be paying 24-40% more than before; Spirit nickels and dimes for everything, while JetBlue doesn’t, so I think it would be more valuable to compare the overall amount people are spending to fly, rather than just base ticket costs
- I think the whole argument that ultra low cost carriers have low fares and that other airlines have high fares just isn’t accurate or fair; I mean, JetBlue has $89 fares between Miami and Los Angeles ($124 with a full size carry-on), while Spirit has $336 fares between Tampa and Fort Lauderdale (without a carry-on), so it really depends on the flight you’re looking at
Now, if you ask me, the biggest issue with JetBlue’s takeover of Spirit is just that JetBlue doesn’t have a very good business model. The airline offers customers more while not being able to attract a revenue premium over competitors. On top of that, JetBlue’s operational reliability is abysmal.
From a business standpoint, it sure seems to me like JetBlue would be better off taking over Spirit and then bringing the Spirit product to JetBlue planes, rather than the other way around. Spirit has a better business model, in my opinion, and you can also bet that this concept would be approved.
Bottom line
JetBlue admitted in an internal document that it would raise Spirit fares by up to 40% if the merger were approved. While that obviously sounds bad and anti-competitive, I don’t think that should actually be a surprise.
Spirit generates a lot more in ancillary fees than JetBlue does, so of course JetBlue would raise fares while offering free carry-on bags, free seat assignments, free drinks and snacks, TVs and free Wi-Fi, and more.
I don’t necessarily think that this would be bad for consumers, or that this should come as some major revelation. However, the fact that these details were revealed in this way is pretty embarrassing.
What do you make of this JetBlue revelation?
Is the writer of the story kidding spirit is no better than frontier while JetBlue might not be a true first class airline in the proverbial sense it certainly is better than Spirit how do you say that JetBlue should adopt spirits business model? I guess you like 28-inch seat pitch ?
I agree that Spirit’s business model is better than JetBlue’s, but I actually don’t think they should adopt Spirit’s. JetBlue’s two largest markets are New York and Boston, which are two of the most expensive cities in the country and neither is really a market for a ULCC in my opinion. Especially in Boston, I think adopting Spirit’s model would mean giving up even more market share to Delta (who has expanded a lot in...
I agree that Spirit’s business model is better than JetBlue’s, but I actually don’t think they should adopt Spirit’s. JetBlue’s two largest markets are New York and Boston, which are two of the most expensive cities in the country and neither is really a market for a ULCC in my opinion. Especially in Boston, I think adopting Spirit’s model would mean giving up even more market share to Delta (who has expanded a lot in Boston in the last few years—the same thing would happen in New York, but Delta hasn’t been growing as rapidly there).
The Government should block the merger and let AA Swoop in and buy JetBlue.
JetBlue doesn't nickel and dime like Spirit because their checked in baggage is free. Not.
I don’t see this “admission” helping the plaintiffs in this anti-trust case, considering some of their other “arguments” such as:
“ The proposed elimination of Spirit may result in the cancellation of Spirit’s order for new aircraft and its concomitant increase in capacity and expansion. JetBlue operates mostly Boeing aircraft. Spirit, on the other hand, operates Airbus and the merger may require the cancellation of all or some of the Airbus aircraft currently on order...
I don’t see this “admission” helping the plaintiffs in this anti-trust case, considering some of their other “arguments” such as:
“ The proposed elimination of Spirit may result in the cancellation of Spirit’s order for new aircraft and its concomitant increase in capacity and expansion. JetBlue operates mostly Boeing aircraft. Spirit, on the other hand, operates Airbus and the merger may require the cancellation of all or some of the Airbus aircraft currently on order by Spirit (Spirit Airlines announced its intention to has an order to purchase 100 new Airbus A320neo family aircraft). As a result, if Spirit is eliminated, it is very probable that JetBlue may decide not to operate the new aircraft with which it is unfamiliar, and will cancel Spirit’s pending order for new Airbus planes. JetBlue’s cancellation of the Airbus order may lead to further capacity reductions in the air carrier market and may exacerbate the industry-wide so-called “capacity discipline” agreements among the major airlines that have plagued passengers since the airline mergers began in 2008 and which have served only to drive prices upward - and passenger service and satisfaction downward”
JetBlue does not utilize Boeing aircraft. Their fleet is almost entirely Airbus, aside from a handful of Embraer planes. Just an fyi.
Yes I know…I was citing what was one of the plaintiffs anti trust arguments against the merger! Read what I wrote at the beginning!
I fly Spirit. I love spirit. I could care less about any of the nonsense. I fly across the country in just a few hours. Screw the tv, the WiFi, the drinks, the seats, etc. It's only a few hours people. What about those that just need to get somewhere, like me? I don't take bags, I just need cheap flights. I pay nothing for taxes or fees, I get where I'm going, round trip...
I fly Spirit. I love spirit. I could care less about any of the nonsense. I fly across the country in just a few hours. Screw the tv, the WiFi, the drinks, the seats, etc. It's only a few hours people. What about those that just need to get somewhere, like me? I don't take bags, I just need cheap flights. I pay nothing for taxes or fees, I get where I'm going, round trip for under 100$. You all want luxury when you fly, choose another airline. That's the bleeping bottom line. Keep mine the same...
Per MT News today.
https://t.co/1W4b75aDAd
JetBlue Airways said Friday that media reports it may raise fares
SAVE are based on a flawed after its planned merger with Spirit Airlines
interpretation of facts in internal documents.
The media reports said, quoting court documents filed by lawyers
representing consumers who are suing the airline to block the deal, that
JetBlue may raise prices on some routes by up to 40% if it's successful...
Per MT News today.
https://t.co/1W4b75aDAd
JetBlue Airways said Friday that media reports it may raise fares
SAVE are based on a flawed after its planned merger with Spirit Airlines
interpretation of facts in internal documents.
The media reports said, quoting court documents filed by lawyers
representing consumers who are suing the airline to block the deal, that
JetBlue may raise prices on some routes by up to 40% if it's successful in
buying low-cost rival Spirit.
"Unfortunately, following a filing error by the legal team for a group of
consumers that has filed a baseless lawsuit, we are in a position where we
need to correct the record," a JetBlue spokesperson told MT Newswires in
an emailed statement. "To be very clear, the claims reported by several
media outlets did not reflect facts set out in JetBlue documents."
"Serial private plaintiffs represented by Alioto law firm, in a […] court
filing laying out their arguments opposing our motion for summary
judgment, incorrectly redacted sections of text so that it could be read by
cutting and pasting into a new document," the carrier said.
"As we attempted to clarify yesterday, it is important to understand that
the redacted text was content written and produced by Alioto in their own
court filing, not redactions to JetBlue internal documents," JetBlue said.
"These redactions were in text where Alioto had outlined, in their own
words, their argument to the court, and essentially represents the
plaintiff's 'spin' on confidential evidence they have reviewed. It's no
surprise a class action attorney would mispresent the facts in a brief to the
court to preserve their case," it added.
"The factual evidence, when presented in a full and complete picture, will
demonstrate that JetBlue intends for the merger with Spirit to increase
competition and help lower fares across the board while also bringing
JetBlue's high-quality and much-loved experience to millions more travels,"
JetBlue said.
MT Newswires
These are all lies spewed to get a story headline! I work with the airline and these are all lies! Everything will be remaining the same cost wise!!! Any changes will be on the aircraft etc.
You got to fix them first they are terrible seats and delays my grandson was delayed 10 hrs have him a $100 voucher that he can’t even use without a blackout date but it’s ok for him to wait 10 hrs not even 12 hrs
A major part of the decision about JBLU and SAVE's merger plans involve the structure of the US airline industry as it is divided between the big 3 global carriers - American, Delta and United, the low cost carriers led by Southwest and including JetBlue, and the ultra low cost carriers. Hawaiian and Alaska are both technically legacy carriers but from a cost standpoint, ALK is more like a low cost carrier than a legacy...
A major part of the decision about JBLU and SAVE's merger plans involve the structure of the US airline industry as it is divided between the big 3 global carriers - American, Delta and United, the low cost carriers led by Southwest and including JetBlue, and the ultra low cost carriers. Hawaiian and Alaska are both technically legacy carriers but from a cost standpoint, ALK is more like a low cost carrier than a legacy carrier but offers legacy-type services built around a hub and spoke network.
The ULCC segment in the US is still very small. Spirit has developed the sector. The real issue is that the merger will eliminate the largest ULCC and make it virtually impossible for remaining ULCCs to grow to replace SAVE's capacity. SAVE's strategy has involved much more "taking on" the big 4 in their key markets, something that JBLU has not been as successful doing and something the other ULCCs do not do.
When it comes to big 3 financial strength right now, many argue that bankruptcies and covid government bailouts helped them but chapter 11 reorganization is just as available to any existing US airline as it was to the current big 3 and their predecessors. AA, DL and UA plus their former merger partners used C11 to rebuild their strategies as well as to cut labor costs.
It is ironic that the big 3 are now driving cost increases esp. as labor costs soar under new pilot contracts which are being passed on to other labor groups. That level of labor costs is not sustainable for the low cost and ULCC sectors. The big 3 have recovered and will recover alot of those higher costs by getting more revenue from premium passengers, something that LCCs and ULCCs are much less able to do. The irony can't be lost that it was low fares and service that built the LCC and ULCCs and yet it is now premium service and international travel that is helping the big 3 more than LCCs and ULCCs, including Southwest.
The change that is taking place is structural. It might not last but the LCC and ULCCs have to figure out how to adapt if they are to survive. The big 3 survived because they adapted; all 3 are nearly 100 years old.
The issue that JBLU has to face is that its business plan has not worked, they have failed to fix it, and have resorted to the NEA (since shot down) and now a merger with an ULCC that will involve reducing competition in a very different way that happened when each of the big 3 and their predecessors merged.
The problem is not mergers but JBLU's inability to adapt so far as well as the type of merger than JBLU proposes.
As hard as it is for some to accept, that is the reality that must be faced and addressed.
My concern is for airports that JetBlue does not service ( and probably has no plans to) such as Atlantic City
Will it become a ghost town as Spirit is their main airline
At the end of the day regardless of whether one enjoys or even flies Spirit, its presence as well as Frontiers and other smaller ULCCs, drives ticket prices down across all carriers. As service has been dramatically cut amongst all airlines post pandemic it is not surprising we are seeing dramatic increases in flight prices. Losing another large competitor will only further consolidate the position of the legacy carriers and put a stake through the...
At the end of the day regardless of whether one enjoys or even flies Spirit, its presence as well as Frontiers and other smaller ULCCs, drives ticket prices down across all carriers. As service has been dramatically cut amongst all airlines post pandemic it is not surprising we are seeing dramatic increases in flight prices. Losing another large competitor will only further consolidate the position of the legacy carriers and put a stake through the heart of most routes as far as pricing.
While consumers pay more for travel the seating accommodations need to change. People are bigger and need more room. I’m 5’3 130 lbs and in the last three trips I took was squashed in my seat. This needs to be addressed. People are taller and sometimes fatter. The kids today who are atheists can’t fit in these seats. It’s ridiculous how small the area to sit in a plane is. When will they address the need for more leg room, and wider plane seats?
I travel quite a bit and prefer Jetblues model and planes. I dread when I have to book Spirit, Frontier or Southwest. All those little amenities make a major a difference. And make your flight truly enjoyable.
The airlines are discriminating the Haitian people. They charged Haitian 3 times more than people going to Dominican Republic. JetBlue Spirit and American Airlines
This merger shouldn't be approved it should be blocked 100% it is a very bad idea it will be terrible for consumers not good at all!!!
This article is badly misleading. Firstly the "leaked" info comes from the plaintiffs in the lawsuit. Secondly, yes the fares might increase but the overall cost may accident decrease due to not having to pay outrageous fees for stupid things.
Spirit is a bottom feeder ….. it followed the low cost British model where one gets a bargain fare but pays for add ons. Their fare, in the total paid, is not much different to others.
Jet Blue is not as bad as Spirit so raising a fare from an unrealistic level but eliminating the annoying penny ante charges will not make much of a difference in passenger’s total cost
JetBlue should just turn Spirit into "jetLightBlue" -- Keep the Spirit model, or make minor adjustments, while operating under the jetBlue name.
Its amazing how many comments on here are talking about "spirits business model making money and jetblue doesn't". Has anyone taken time to look at Spirits quarterly reports? They haven't made a dime in over a year, jetblue has. Have any of you listened to the last earnings? Margins at full fare carriers are much higher than ULCC because people are willing to get more out of their travel and not getting anything out of...
Its amazing how many comments on here are talking about "spirits business model making money and jetblue doesn't". Has anyone taken time to look at Spirits quarterly reports? They haven't made a dime in over a year, jetblue has. Have any of you listened to the last earnings? Margins at full fare carriers are much higher than ULCC because people are willing to get more out of their travel and not getting anything out of the ULCC experience. No Jetblue must NOT adopt the spirit model, especially out of places like NY and Boston where they have a big loyal customer base. They will run over to Delta and United and AA. Meanwhile NK has been reporting loss after loss and Frontier has had increasingly eroding margins. Get your info together before commenting foolishly.
I looked at their financials. Indeed for the first six months of 2022 when taking out non cash items they barely made an operating profit. That would not include interest expense. If Spirit can't really make money now what's going to happen if there's a downturn that hits consumers and spending. No evidence but I also wonder if consumers have learned over time how not to pay all those fees and Spirit isn't getting the ancillary revenue that they used to.
you posted the same thing on another website. failed to back them up w/ facts so you posted it again here.
SAVE's margins may have been higher than JBLU's but by a very small amount.
JBLU has been the least profitable large jet US airline on a margin basis since well before covid '
If you disagree, you should be able to post the numbers
Tim Dunn, we all know you love your precious “large jet airlines” you keep comparing B6 with your love of the big 3. We are talking about ulcc model and the b6 model. The dynamics have changed now and that’s the reality of it however it was 2-4 years ago doesn’t matter. Tell the shareholders that. “ hey we keep losing money now, but we made money 4 years ago!”
And please stop bringing...
Tim Dunn, we all know you love your precious “large jet airlines” you keep comparing B6 with your love of the big 3. We are talking about ulcc model and the b6 model. The dynamics have changed now and that’s the reality of it however it was 2-4 years ago doesn’t matter. Tell the shareholders that. “ hey we keep losing money now, but we made money 4 years ago!”
And please stop bringing up the legacies who have done the very thing JetBlue is doing PLUS. Ch11 bankruptcy to pull themselves ahead without really building to what they had had they not filed for ch11. B6 is trying to do that without needing ch11 protections. So why your against B6 doing what the other guys you dearly love have done is beguiling to me.
Got it from their SEC filings. You have no idea of what you're talking about. Margins mean nothing if the level of SG&A expenses are higher.
Link to the SEC filing https://www.sec.gov/ix?doc=/Archives/edgar/data/1498710/000149871023000163/save-20230630.htm
You can't compare "un-bundled" pricing to "all-in" pricing. Sure, a cheap ticket sounds good. Until you pay $25 to book the flight online, $50 to check your bag at the airport, $10 for water, $25 for wifi, big $100 on the big front seat, yada-yada and etcetera. I still think JetBlue should merge with Alaska and stay in OneWorld. That would be the best for consumers all around and give a TRUE 4th option to consumers.
Sorry, how is JetBlue so very much better than Spirit when it comes to fees? Your basic fare includes a personal item, small enough to fit in front of you. You want a carry on? Pay up. You want a checked bag? Pay up. How about selecting your seat ahead of time? Yeah, pay up. Sure, the fees are generally less with JetBlue, but the average flier isn't going to care that you are only...
Sorry, how is JetBlue so very much better than Spirit when it comes to fees? Your basic fare includes a personal item, small enough to fit in front of you. You want a carry on? Pay up. You want a checked bag? Pay up. How about selecting your seat ahead of time? Yeah, pay up. Sure, the fees are generally less with JetBlue, but the average flier isn't going to care that you are only charging $4 for a seat instead of $15, when the base fare is so much higher. And this is why Spirit is far more profitable. This merger was always about getting rid of the competition, and JetBlue foolishly got caught saying the quiet parts out loud.
I feel like this ignores the fact that customers won't get hit with a ton of unexpected "non-fare" costs like printing out boarding passes fees, agent assistance fees, and fees to bring bags on the plane once they get to the airport. Spirit's fares are artificially low because they omit a lot of the base services that other airlines include with the purchase of a ticket. I don't see it as any different as airlines...
I feel like this ignores the fact that customers won't get hit with a ton of unexpected "non-fare" costs like printing out boarding passes fees, agent assistance fees, and fees to bring bags on the plane once they get to the airport. Spirit's fares are artificially low because they omit a lot of the base services that other airlines include with the purchase of a ticket. I don't see it as any different as airlines that would advertise fares and you would get to check out, only to get hit with a bunch of other fees that you weren't expecting and suddenly a $79 fare becomes $200.
It is interesting that JetBlue wants to take over the far more profitable Spirit...so it can convert their assets over to work under JetBlue's inferior business model. Maybe the point in JetBlue's eyes is this will make them "too big to fail" so they don't have to run that great of a business.
On the plus side, as a tall passenger, the additional knee room will be welcomed...
"JetBlue would be better off taking over Spirit and then bringing the Spirit product to JetBlue planes, rather than the other way around. Spirit has a better business model"
Yes. This. Not because I enjoy Spirit's onboard experience more than JetBlue's, but because Spirit's model is working and JetBlue's isn't.
Another clueless response. I’ve stated this in prior reply’s in this comment board. Spirit has lost money the past 5 quarters and JetBlue has been posting profits. JetBlue will make a profit in ‘23 and spirit will be at a loss. Look it up, doesn’t sound like a winning model!
I really hope this merger doesn’t go through. As a CLT hub hostage, an airport that has one of the highest percentage of flights dominated by one carrier, I appreciate that NK offers 9 nonstops. B6 offers a whopping 1 nonstop! I fear how many of these routes will be axed post merger. NK’s pricing forces AA to compete in those 9 markets.
Fare increases are only a small concern compared to complete competition...
I really hope this merger doesn’t go through. As a CLT hub hostage, an airport that has one of the highest percentage of flights dominated by one carrier, I appreciate that NK offers 9 nonstops. B6 offers a whopping 1 nonstop! I fear how many of these routes will be axed post merger. NK’s pricing forces AA to compete in those 9 markets.
Fare increases are only a small concern compared to complete competition reduction. This will be an issue at many other hubs that NK operates at including DEN and ORD…
We live in the time of stupid. Stupid people buy a $59 ticket on Spirit and are simply amazed at how horrible the experience is and hidden fees they weren't aware of. There's no free lunch only really lousy ones. This isn't Jetblue's business model. People are then free to fly Frontier which is akin to flying in a cattle car.
This article feels like it was written by a Jet blue friendly. At no point does the article address the DOJs possible concerns raised by these statements: harm to the customer. Instead, Ben tries to say "ehh, no big deal."
The reality is that Spirit is the new Southwest, in that it has lowered airfares for everyone. Without Spirit, there's no basic economy. Without Spirit, fares would be higher across the board.
We don't have...
This article feels like it was written by a Jet blue friendly. At no point does the article address the DOJs possible concerns raised by these statements: harm to the customer. Instead, Ben tries to say "ehh, no big deal."
The reality is that Spirit is the new Southwest, in that it has lowered airfares for everyone. Without Spirit, there's no basic economy. Without Spirit, fares would be higher across the board.
We don't have to fly Spirit to benefit from its independence. The unsaid has now been said, and the deal needs to die.
Are you sure you read the article? Ben does acknowledge possible concerns to the DOJ. He then moved on to make his point. You might have wished that his point was different, but that doesn't mean he didn't acknowledge that well of course the DOJ will have concerns.
Doesn't the document also note that routes that Spirit exists often see a 30% fare increase? That, coupled with the fact that JetBlue plans to increase prices paints a pretty clear picture that any price hike by Spirit/JetBlue will in fact result in price increases.
I'll also add that while Spirit nickels and dimes you, the effect of listing a lower base price on popular search engines (like Google flights) probably has an overall effect...
Doesn't the document also note that routes that Spirit exists often see a 30% fare increase? That, coupled with the fact that JetBlue plans to increase prices paints a pretty clear picture that any price hike by Spirit/JetBlue will in fact result in price increases.
I'll also add that while Spirit nickels and dimes you, the effect of listing a lower base price on popular search engines (like Google flights) probably has an overall effect of driving competitor prices down.
Finally, I'll add from a consumer perspective that while Spirit nickels and dimes you, it still provides a choice. I've booked flights for friends and family where they've chosen to forgo carryons, consolidated luggage, or went with random seating to keep the price down. It sounds as though this fare increase will in some sense take away that flexibility. Unless of course this increase doesn't account for bundling some of those a la carte services, in which case pay 40% more to the base fare before add-ons is just a straight negative
you get it.
SAVE does provide an alternative... and it isn't like JBLU is a full-service carrier. They themselves have slowly been unbundling their product just like the big 3 do.
If you want the consistently "most bundled" airline, it would be Southwest. Problem is that there are many people that accept a basic no-frills airline ticket because they don't want to have to pay for services that they don't use.
Losing...
you get it.
SAVE does provide an alternative... and it isn't like JBLU is a full-service carrier. They themselves have slowly been unbundling their product just like the big 3 do.
If you want the consistently "most bundled" airline, it would be Southwest. Problem is that there are many people that accept a basic no-frills airline ticket because they don't want to have to pay for services that they don't use.
Losing Spirit WILL result in higher fares for the majority of customers when you factor in consumer preference across the board. SAVE, JBLU and DOJ ALL know that.
This is precisely why the DOJ is opposed to the merger. Putting a number on the impact of reduced capacity and increased fares makes it virtually impossible to counter.
It is stunning how sloppy JBLU was with their internal documents - and this revelation could well doom not just the merger but also their long-term future. Losing the NEA and the merger would put them right back to having to compete even more aggressively...
This is precisely why the DOJ is opposed to the merger. Putting a number on the impact of reduced capacity and increased fares makes it virtually impossible to counter.
It is stunning how sloppy JBLU was with their internal documents - and this revelation could well doom not just the merger but also their long-term future. Losing the NEA and the merger would put them right back to having to compete even more aggressively in markets and with carriers where it hasn't been a financial leader since well before covid.
It is possible that JetBlue will assert that the redacted text is privileged and inadmissible because it was redacted. The fact that one can defeat the redaction by using a cut and paste method does not make the text officially unredacted.
I started to book a Spirit flight before and even had to, for fare purposes, sign up for their frequent flyer program. After adding on the fees, I found it was more expensive and did not book a flight on Spirit.
How could a document that is about internal to JetBlue be priveleged? Even if it was from you to your lawyer, it would have to be specific to your defense. Even then, if you CC'd someone not represented it would be admissible.
It's not a criminal trial. I don't think they can claim "inadmissible evidence." Though, I'm not a lawyer and don't have the slightest idea what talking about.
BREAKING NEWS: Consolidation of competitors is bad for consumers
Your argument excludes a big portion of Spirit flying consumers who either fly with a personal item and don’t pay for seat selection. Or the ones who have signed up for spirit’s programs where you pay membership fee but get these benefits on all your flights.
Also, the example you gave is just one flight. DTW to SJU is consistently ~$300. Where as DL, AA are consistently over $500. Even after paying for bags and...
Your argument excludes a big portion of Spirit flying consumers who either fly with a personal item and don’t pay for seat selection. Or the ones who have signed up for spirit’s programs where you pay membership fee but get these benefits on all your flights.
Also, the example you gave is just one flight. DTW to SJU is consistently ~$300. Where as DL, AA are consistently over $500. Even after paying for bags and seats, Spirit will still be cheaper. Also, your argument doesn’t consider the knock on effect - guaranteed price increase for other carriers in that same market.
Wow they're screwed now.
But DOJ killed the NEA due to a “negative impact on consumers”. Right. NEA helped consumers IMO. Making a top 2 discount carrier disappear into thin air clearly isn’t going to help consumers.
I plan to make accidental announcements about what will happen after I marry Taylor Swift, become President, and shoot scratch golf.
Same chance of any of those things happening as the deal being completed.
Well said... 40% of what ? lol $39?
I appreciate you writing a more two sided argument than Gary.
The problem is the impact the raising of those fares would have outside of the airline. Spirit's low fares requires the competitors to compete because people would rather spend 50 USD on the fare and 25 USD for their bag than spend 55 USD on the competitor that includes a bag. So getting rid of the low fare competitor means everybody can raise their fares. So I don't think it matters that they might have...
The problem is the impact the raising of those fares would have outside of the airline. Spirit's low fares requires the competitors to compete because people would rather spend 50 USD on the fare and 25 USD for their bag than spend 55 USD on the competitor that includes a bag. So getting rid of the low fare competitor means everybody can raise their fares. So I don't think it matters that they might have the opportunity to get a 'better deal' by paying 40% more for their tickets.
What has Spirit done for the industry?
Jetblue enters in 1999 - Everyone starts adding TVs to compete
Spirit becomes ULCC - Everyone reduces seat pitch and takes away every last included item
I do not think Spirit is good for competition. They lower the bar,
And in return we get a lower fare. The industry trends suggest customers are more interested in cheap flights than anything else. Otherwise, we'd see more first class and economy plus.
Are we, as customers, getting duped? Possibly. But Spirit does help keep fares lower.
Spirit is great for consumers and for competition. If you all want luxury, fly another airline and pay 300-500 for the same thing that I get for 59$. There are a lot of us that could care less about the luxury. I just need to get to my destination. Bottom line.
Who cares! Bus service is available and other ultra low cost airlines have cheap flights JetBlue needs to grow and compete! This deal will move forward and be a benefit to the flying public. An enhancement of airline service is pending no airline merger has ever been turned down !