with few options but to accept whatever prices JetBlue chooses to set. Over the summer, documents also emerged showing plans to raise Spirit prices byWith trial beginning last week at the U.S. District Court for the District of Massachusetts and expected to go on until Dec. 5, litigators argued that the JetBlue-Spirit merger would make it the fifth-largest airline in the country and create an anticompetitive environment.
Hayes denied the slide alleging that he expressed interest in eventually taking over Alaska Airlines and testified that JetBlue never initiated such discussions. He also testified that JetBlue has no plans to pursue further acquisitions if the Spirit merger is permitted to go forward. The purchase, Hayes said further in court, is meant to place JetBlue on part with the big four airlines that currently control 80% of the U.S. market. This refers to Delta Air Lines"It is a very tall order to compete with them," Hayes said in court on Nov. 6."The top four airlines account for about 80% of US ticket revenue. We've spent 20 years now carving out 5%" of the market.
He further argued that purchasing smaller airlines is the only viable way for JetBlue to develop a national presence and grow as an airline as any other major airline would also"never, ever get to the size they are based on organic growth." The lengthy court case will hear multiple arguments about how a potential merger between JetBlue and Spirit will affect the market. To assuage DoJ concerns that it is creating an anticompetitive environment and tip the scales in favor of the merger, JetBlue had previouslyat Boston and Newark Liberty International Airport to Nevada-based low-cost carrier Allegiant as well as dedicate five gates currently being used by Spirit in Fort Lauderdale to the same airline.
Source: Entertainment Trends (entertainmenttrends.net)
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