Judge BLOCKS JetBlue, Spirit merger

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  • Опубліковано 17 січ 2024
  • A federal judge on blocked JetBlue Airways’ effort to merge with Spirit Airlines. In his 113-page decision, U.S. District Judge William G. Young wrote that a merger would hurt consumers who rely on Spirit’s low fares.
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  • @JohnDoe-hm4in
    @JohnDoe-hm4in 4 місяці тому +18124

    “We want to buy them so we can have more money to buy other things plus you’ll have less money to buy things because you’ll be giving it to us. This is a smart idea that makes sense.”

    • @mpgodjr
      @mpgodjr 4 місяці тому +15

      It does

    • @parallax7789
      @parallax7789 4 місяці тому +326

      @@mpgodjrit does not. We wouldn’t be able to afford airlines.

    • @NostalgicOccultist
      @NostalgicOccultist 4 місяці тому +291

      @@mpgodjrIt makes perfect sense if you love making everything worse

    • @dazednotconfused1503
      @dazednotconfused1503 4 місяці тому +55

      And also go even laxer on safety measures so more doors can be blown off mid-flight

    • @dmhzmxn
      @dmhzmxn 4 місяці тому +11

      mm sounds to me like none of the governments fucking bussiness as usual haha

  • @eos_aurora
    @eos_aurora 4 місяці тому +12771

    Hopefully this is a sign of things to come in other antitrust lawsuits

    • @outlaw451
      @outlaw451 4 місяці тому +150

      Doubtful, but let's hope.

    • @zadinal
      @zadinal 4 місяці тому +42

      In that they'd like to maintain the status quo even for a company that is literally failing constantly to prevent it from making a dent in the other 4 major airlines?

    • @Alex-zs3kn
      @Alex-zs3kn 4 місяці тому

      Spirit Airlines is going bankrupt and Jet Blue buying them was their last hope. The judge blocked it becuase Jet Blue buying Spirit would hurt Delta, United, and American.
      Why do you want more legal decisions meant to protect the interests of the largest companies?

    • @maxinesenior596
      @maxinesenior596 4 місяці тому +119

      ​@@zadinalto prevent prices from increasing. Less competition means higher prices

    • @zadinal
      @zadinal 4 місяці тому

      @@maxinesenior596 while somewhat true there are a couple flaws here. Pretty much every airline is running a thin profit margin. Some years it is crazy small. So you can't cut what isn't there but let's pretend for one minute that there was a lot of margin we could eat into to make cheaper tickets. The other problem is we are having to artificially prop up a shitty company for FEAR we will allow a monopoly even though there are 4 major competitors. Instead of allowing crappy companies to die off and God forbid offer incentives for new more profitable ones to move in all we are doing is creating a stagnant inefficient industry to remain stagnant and inefficient because of government intervention. Same issue we saw in 2008 with the too big to fail banks. Would it have been bad to let a bunch burn to the ground? Yes but by artificially saving them we created a bigger problem with less innovation and a willingness to be reckless because they will get bailed out.

  • @goshdarnchicken
    @goshdarnchicken 4 місяці тому +9199

    Theyre litterally justifying the purchase with the same reasoning the judge is using against them.

    • @baronbrummbar8691
      @baronbrummbar8691 4 місяці тому +148

      i mean they make a fair argument
      even with this merger they are way way smaller then the big boys

    • @BaltasLapinas
      @BaltasLapinas 4 місяці тому +172

      But then they gain capital, remove a competitor, and could move towards buying other small/forming airlines or merge with another bigger airline company.

    • @alexmansour100
      @alexmansour100 4 місяці тому +46

      @@BaltasLapinastrue except smaller airlines can’t be forced to sell themselves and would have to agree to be bought out. I hate monopolies but this reasoning is bogus.

    • @notoyaarthur1990
      @notoyaarthur1990 4 місяці тому +52

      ​@alexmansour100 but don't smaller companies usually be forced to sell out because they just don't have the resources to compete at times. If u allow this now, it'll simply snowball and eventually escalate and who does that hurt in the long run...the consumers. So why have a problem with government checks and balances if it helps YOU save money in the long run as opposed to a corporation just getting bigger and more powerful

    • @Original_Tenshi_Chan
      @Original_Tenshi_Chan 4 місяці тому

      ​@@notoyaarthur1990You are correct, sir! By allowing them to merger, they would have more buying power and no longer the "Spirit Discount Affect". Plus, with that buying power, they could afford more temporary loss leaders in the smaller competitor's area. Sure, Spirit Blue would be losing some money while choking out Smaller Airplane Co by pricing their flights juuussttt barely under SAC. But, once SAclC goes under and can no longer afford to offer the cheaper alternative, Spirit Blue will just go back to jacking up their prices while decreasing value because "who else are you going to use? High End Air (Delta, Virginia, Emirates, etc)?? **Insert maniacal bad guy laughter here** pay up, and suck it up, plebes!"
      Merging and distilling power and choice to only a few super Mega corps, with no competition, is just a recipe for antitrust disaster.

  • @DynamicalisBlue
    @DynamicalisBlue 4 місяці тому +5602

    Hold up. The US is actually blocking anti-competitive merges? Never seen this before.

    • @Del0s32
      @Del0s32 4 місяці тому +137

      I know for the first I agree with the court.

    • @PTNLemay
      @PTNLemay 4 місяці тому +217

      Slow progress is still progress

    • @Gravesend83
      @Gravesend83 4 місяці тому +112

      yeah they let Microsoft buy Bethesda and Activision. Why wouldn't they let Jetblue buy Spirit?

    • @Kathdath
      @Kathdath 4 місяці тому +30

      It generally come down to campaign contributions to determine the wording of legislation in the USA

    • @sanguisbumb6138
      @sanguisbumb6138 4 місяці тому +259

      @@Gravesend83To be fair the video game industry is still very competitive. A small indie title like Lethal Company can beat a AAA game like COD in sales. In an industry where that can happen anti-trust laws are not needed. But some anti-gambling are very much needed.

  • @Science__Politics
    @Science__Politics 4 місяці тому +3610

    This sounds like an argument to trust bust the four major airlines as it is 😅

    • @Crazt
      @Crazt 4 місяці тому +143

      Honestly, the real problem is that there hasn't been a significant change in the airline industry since the dawn of the jet age. Some speed increases and fuel efficiency upgrades are about as good as any airline gets. The biggest fleets make money by other means, not the ticket prices. American and Delta are basically banks that advertise through their flights. The cost of operating the flights is too expensive to start a competitive market. The only thing that would reduce the costs of domestic flights is a massive investment in high-speed rail lines that would negate the need for regional airports. Or a shift in fuel types used by passenger aircraft and the ability to bring maintenance hours to flight hours to less than 1:1.
      Any benefits from the X-59 are over a decade from commercial use.

    • @gavincotter9326
      @gavincotter9326 4 місяці тому +6

      They used to have plenty they all went out of business it’s a terrible model.

    • @lt_dreams96
      @lt_dreams96 4 місяці тому +4

      ​@@jordypoeAnd this decision also protects the Big 4.

    • @Crazt
      @Crazt 4 місяці тому +4

      @@jordypoe , I really don't think I am. The issue is every airline company uses the same handful of planes. Aside from a few amenities, there are little benefits to flying one airline over another. The configuration of each craft offers different benefits to each airline. Flying Spirit over Dubai only means you're paying less up front and getting less personal space. Breaking them up like it's the 1970s only means they're competing for more of the same market share which will legitimately hurt employees. They will have fewer aircraft per company and those companies will only be willing to fly routes that come with the most profits. The big airliners operate regional airports at a loss, but they serve to convince would be vacationers to take more flights.

    • @CatastropheCatalyst
      @CatastropheCatalyst 4 місяці тому +9

      ​@@jordypoepart of the issue is there isn't really much to develop in terms of technology, we have commercial air travel pretty well figured out because we can't go supersonic due to noise concerns (plus it's not particularly fuel efficient) so any real gains you can see from technological development are minor. Until we can crack commercial supersonic flight in a manner that doesn't create a whole ton of noise, and isn't horrendously fuel inefficient, we likely won't see any real leaps in technological development go into commercial air travel.

  • @hankwells2637
    @hankwells2637 4 місяці тому +309

    Kinda insane that the spirit JetBlue merger is “too big of a merger” while 4 companies own 80% of the market

    • @AaronCMounts
      @AaronCMounts 3 місяці тому +24

      That's an argument to trust-bust the 4 biggest companies.

    • @Seirra54
      @Seirra54 2 місяці тому +6

      It’s okay. The Judge wanted Jet Blue to be able to pick apart Spirit when they go bankrupt later this year.

    • @jasonbfhfj8132
      @jasonbfhfj8132 Місяць тому

      @@AaronCMountsdo you think voting democrat or republican will cause that to happen?

    • @chaoticdetectivepeach
      @chaoticdetectivepeach Місяць тому

      ​@@jasonbfhfj8132Neither, both are conservatives, so they're both kinda worthless when it comes to checking capitalist practices.

    • @jasonbfhfj8132
      @jasonbfhfj8132 Місяць тому

      @@chaoticdetectivepeach as if socialist countries don’t do this too but worse. You don’t see it because the government pays the bill for you

  • @Corndog4382
    @Corndog4382 4 місяці тому +1604

    To bad antitrust doesn’t seem to ever apply to tech. Amazon and google are allowed to buy anything without a question

    • @shaggywithabaggy5200
      @shaggywithabaggy5200 4 місяці тому +110

      The FTC is currently sueing Amazon for running an online monopoly likely won't happen but worst case scenario for Amazon if they loose this case is they can be forced to break up the company

    • @yulfine1688
      @yulfine1688 4 місяці тому

      ​@shaggywithabaggy5200 yeah but you do realize it's all just for show right.. the government litterally is best buds with them they Lobby pay the government money and the government pretends to care and slaps them on the wrist and then nothing actually changes.. They're also subsidized and fairly protected by the government so no competitor is going to ever be able to compete anyways..

    • @jmanroXD
      @jmanroXD 4 місяці тому +11

      They're too old to get it, basically

    • @humanguyalsoperson7987
      @humanguyalsoperson7987 4 місяці тому +11

      i feel like it's so much different with tech because like if you look at least old twitch or youtube you could say they have a monopoly on they had monopoly on streaming and video sharing but it's not really monopoly when everyone wants to use your product because it's good it's only a monopoly when you have too use it

    • @Tyshkevich
      @Tyshkevich 4 місяці тому

      ​@@humanguyalsoperson7987tech companies very often buy small companies with great ideas and then shelf them because those ideas would wreck them. Essentially blocking innovation.

  • @seanbrennan8781
    @seanbrennan8781 4 місяці тому +321

    Its hilarious this was denied while United+Continental, Delta+NWA, American+US Airways was allowed

    • @ILoveQazaqstan
      @ILoveQazaqstan 4 місяці тому +14

      And in like 2000-2001, American+TWA

    • @ff-zo2nk
      @ff-zo2nk 4 місяці тому +9

      didn't Alaska buy Virgin also?

    • @sparkzbarca
      @sparkzbarca 4 місяці тому +26

      No those were allowed because they moved early and are a different market.
      United Delta American and Southwest all compete with each other in the same market as national domestic carriers.
      JetBlue isn't that, it's only regional it can't get slots on the west coast, its only in new York and Florida areas.
      It wants to be that though which it will be if it gobbles up spirits slots it already has on the west coast.
      Spirit on the other hand is a true low cost carrier the other is frontier.
      If Spirit exits which it will basically because JetBlue really wants the slots not the low cost market, the frontier is all that's left

    • @MC_heart4
      @MC_heart4 4 місяці тому +4

      It will be even funnier when spirit goes bankrupt in 2 years and all their shareholders are left with the bag

    • @Mets2015WorldSeries
      @Mets2015WorldSeries 4 місяці тому

      @@sparkzbarcajet blue is national. At least you can go LA to JFK

  • @cthulhucharon549
    @cthulhucharon549 4 місяці тому +940

    I cant wait until delta becomes God and charges 40 mil for a 10 min flight

    • @rlevy13
      @rlevy13 4 місяці тому +62

      Where tf you finding that discount?

    • @alba2162
      @alba2162 4 місяці тому +23

      @@rlevy13that's the price after selling your soul and limbs

    • @samhu5878
      @samhu5878 4 місяці тому +1

      Delta isn’t the biggest thou.

    • @matthewconley9869
      @matthewconley9869 4 місяці тому +1

      They already charge over 300 for connection flights.Detroit to saginaw MI is litterly 15-20 min in the air.It's 319 dollars tommorow.

    • @miscellaneousproductions
      @miscellaneousproductions 4 місяці тому

      @@samhu5878Seemingly the most expensive though

  • @Notllamalord
    @Notllamalord 4 місяці тому +72

    Spirit is going into bankruptcy rn do they really count as a “competitor”

    • @RR-on4sk
      @RR-on4sk 4 місяці тому +4

      Nah. There's different types of bankruptcy

    • @faffywaffle561
      @faffywaffle561 4 місяці тому

      @@RR-on4skspirit is furloughing pilots and freezing new hires, the company is dying

    • @Seirra54
      @Seirra54 2 місяці тому +1

      @@RR-on4sk Chapter 11 or 7 this market niche is going to get picked apart by someone else that isn’t flying the big yellow bus. I don’t see a way for the current Spirit to exist in their current industry niche and maintain viability.

  • @UnbreakableM1nd
    @UnbreakableM1nd 4 місяці тому +71

    Sounds like the 1st to 4th largest airline don't want a stronger competition.

    • @spacebound1969
      @spacebound1969 3 місяці тому +10

      Bingo. And when spirit dies they get to buy all their assets at reduced price.

    • @jakehoward4881
      @jakehoward4881 2 місяці тому +2

      If the 1st to 4th aren’t competing enough amongst themselves why would you think a 5th large airline would change that?

    • @romansdump
      @romansdump 2 місяці тому +1

      ​@@jakehoward4881cause they might purposefully not compete with each other, this is literally how the market prevents oligopoly, smaller businesses can merge and outcompete the major ones.
      Now, I'm not saying this is the case at any point because I have zero specific knowledge about these specific companies.

  • @francescoalberga3819
    @francescoalberga3819 4 місяці тому +237

    The problem is Spirit is barely holding on so if this deal doesn’t go through we might not have spirit at all

    • @egorkhristov2467
      @egorkhristov2467 4 місяці тому +49

      You think the NPC’s give a damn? You’re the only person even pointing out the sad reality of things in this comments section.
      If Spirit goes under it is gonna affect the maker in exactly the same way as a merger would, if not worse, since all of the equipment and manpower owned by spirit would be inoperable for a good while if not forever.
      Leading to less flights being available on the market, hence driving the prices up.

    • @tranquilcoast
      @tranquilcoast 4 місяці тому +34

      Exactly. Spirit is running on fumes and barely viable on its own. Without this merger it’s actually more likely to reduce competition because Spirit will just go out of business. Think about how we don’t have Eastern or Continental anymore.

    • @XIIchiron78
      @XIIchiron78 4 місяці тому

      Yes, there is a reason they were trying to auction themselves off. Their brand product is just not viable - they depended on attracting customers with a low sticker price, but they are running out of "new" people to catch before they get fed up with extra fees, delays, and discomfort. Meanwhile JetBlue offers an actually competitive product for barely more than Spirit, but can't compete because there simply aren't enough planes and pilots available for them to scale (Airbus's backlog is years long at this point).
      Both of them are basically screwed without the other, and they are weirdly compatible, because they have the same fleet, and not much actual overlap in routes and slots. JetBlue was basically willing to concede everything the government wanted to make a deal, but sadly it seems like they were more concerned with the optics of allowing a merger, than they were with the facts.
      JetBlue after absorbing Spirit is still the same market position that they are now - fifth in size after Southwest. But they would become a true nationwide competitor. In many markets, JetBlue has lowered prices by as much or more than Spirit has, because their product is actually akin to the other airlines instead of being their own shitty category. The government conveniently overlooks this when making their argument.
      I am against monopolies as much as the next guy, but this isn't an example of that, and public policy cannot be as simple as "merger bad".

    • @svantewiktorsson
      @svantewiktorsson 4 місяці тому +1

      Well sure, but its the best solution that is possible with current law and politics.

    • @MisterPliskin570
      @MisterPliskin570 4 місяці тому +25

      It's okay for a business to fold. There will be room for another competitor.. But if it gets bought out the gap will stay filled.

  • @williamknox6648
    @williamknox6648 4 місяці тому +149

    Corporations consolidating is not how you battle bigger corporations. That just leads to everyone being absorbed into 1 mega corp

    • @samhu5878
      @samhu5878 4 місяці тому +1

      I mean some things are better when they are small business and local but airlines are often the bigger the cheaper and safer. It is very costly to maintain planes and negotiate with airports etc.

    • @flowerpower2067
      @flowerpower2067 4 місяці тому +2

      tell me you have no idea know how free market enterprising works without telling me you have no idea xD

    • @seanjones8445
      @seanjones8445 4 місяці тому +4

      It’s one way it works for airlines. They aren’t just buying the company they’re buying the companies infrastructure which is important. A lot of airports aren’t in areas that they can easily expand so that’s the point of buying an airline. You’re able to break into those market areas or expand the number of flights you have out of there without infrastructure expansion

    • @xaviersmith5154
      @xaviersmith5154 4 місяці тому

      And what is the problem with that? It's no ones buisness at all what they do with their buisness.

    • @williamknox6648
      @williamknox6648 4 місяці тому +2

      @@xaviersmith5154 it's literally everyone's business when mega corporations can lobby for whatever they want and the more power and influence they gain is NOT GOOD for normal oeople

  • @Paladreus_History
    @Paladreus_History 4 місяці тому +5

    It's crazy to me that this got blocked, but the big 4 are allowed to exist, this blocking of the merger stifles JBlues ability to compete with the big 4 on a national scale

    • @Denozo88
      @Denozo88 Місяць тому

      To be fair southwest grew over the course of 50 years plus didn't make a major purpose till the series of collapses in the early 2000s

  • @Molly-jh4kz
    @Molly-jh4kz 4 місяці тому +350

    If an industry is consolidating this much, it suggests that it is a natural monopoly and should be nationalized or regulated as a utility.

    • @Jay_in_Japan
      @Jay_in_Japan 4 місяці тому +36

      Lol cos we all know how good gov't-run transport is 😂

    • @burntasparagus
      @burntasparagus 4 місяці тому

      You also know how good government utilities (electricity, water, heating) is. These are natural monopolies and are more efficient as such.@@Jay_in_Japan

    • @fatboy158
      @fatboy158 4 місяці тому +112

      In other countries it actually is. The US is one of the few first world countries without nationwide nationalized transportation.

    • @Molly-jh4kz
      @Molly-jh4kz 4 місяці тому +51

      @@fatboy158 The US may have no good national public transit, but there are some cities with good public transit. Boston and San Francisco are two of the best I have experienced. That other guy just doesn't know what he is talking about. A lot of Americans just don't understand that there are some things the government is better at than private corporations and as a consequence, we do those things poorly.

    • @fatboy158
      @fatboy158 4 місяці тому +20

      @@Molly-jh4kz Yeah there are a few cities that have it, but most don't have good connections with longer distance transit like Amtrak and airports. If every city with public transit had a capacity outlet to an airport, I think we'd be much better off.
      I'll also add, most of that "good public transit" isn't actually good, it just exists without anything to compare it to.

  • @jonathonjudge7360
    @jonathonjudge7360 4 місяці тому +2

    Oh how times have changed considering the Continental United merger was only like 15 years ago

  • @faffywaffle561
    @faffywaffle561 4 місяці тому +19

    Hilarious that the “anti-competitive” nature of the merger and it being denied will lead to the death of both Spirit and JetBlue, further limiting competition 🤣🤣🤣🤣🤣

    • @komalhop
      @komalhop 3 місяці тому +1

      I will check back on this comment in 1 year and see if they died.

    • @Alverant
      @Alverant 3 місяці тому

      Both are doing fine. They'll run to their GOP minions and demand government hand-outs for their CEOs.

    • @failtolawl
      @failtolawl 2 місяці тому

      @@komalhop At least one of them will.

    • @Seirra54
      @Seirra54 2 місяці тому

      @@komalhop Spirit is in very bad shape. They’ve got some serious debt coming due in the next 2 years, the PW1100G will ground a good chunk of their fleet through 2025, their labor relations are in the bin, and they are currently operating 2-3 HQs across Florida.

    • @Chrisp707-
      @Chrisp707- 24 дні тому

      ​@@komalhopit's likely spirit will crumble.

  • @benjaminlehman3221
    @benjaminlehman3221 4 місяці тому +14

    How about we split up ALL of the other airlines instead and require airlines go to smaller local airports?

    • @sethschnakenberg3058
      @sethschnakenberg3058 2 місяці тому

      Layovers would suck so bad

    • @joecoolmccall
      @joecoolmccall 2 місяці тому

      Who is "we"?

    • @jakehoward4881
      @jakehoward4881 2 місяці тому

      Flights can be had from ANY airport already. If you don’t know that, you can’t afford it. If you can’t afford it now, you wouldn’t be able to afford it when delta drops a citation jet in your local airport either

    • @TheRepublicOfUngeria
      @TheRepublicOfUngeria 13 днів тому

      Because that isn't actually possible. We don't have the planes necessary for such small scale service, much less labor to maintain the services required to run many small airports. Also: Airlines don't own airports. All large airports are government owned, businesses merely congregate to sell their services at those airports.

  • @mikelacroix1882
    @mikelacroix1882 3 місяці тому +2

    The judge probably has money coming in from the 4 major airlines and doesnt want the money to stop.

  • @claudeyaz
    @claudeyaz 3 місяці тому +19

    So I guess the lobbyist from the 4 largest airlines spent more on bribes than spirit and jetblue lol

    • @harveylong5878
      @harveylong5878 13 днів тому

      till some Senator that got a much better deal gets involved

  • @charllectric4842
    @charllectric4842 3 місяці тому +6

    Judge: *we wont allow you to merge so we dont hurt customers by limiting number of competitors"
    Spirit: "We are sre on the brink of bankruptcy, if we disappear there will be one less competitor"
    Judge: "Thats the idea"

  • @TheNate7132
    @TheNate7132 4 місяці тому +4

    This makes no senses. If thier merger would make them too big at the 5th largest then why are the 4 largest now not being forced to break ip?

  • @smddev
    @smddev Місяць тому +1

    Meanwhile in Canada our telecom oligopoly is getting smaller and smaller

  • @luminariel3765
    @luminariel3765 2 місяці тому +1

    We're already at a point where we can barely afford plane tickets, merging would hike prices even more

  • @FIRE_BOMB1
    @FIRE_BOMB1 4 місяці тому +23

    “Competitor” is a rather strong word

    • @fatboy158
      @fatboy158 4 місяці тому +7

      Spirit is cheap, not good in any sense of the word but it is cheap

    • @sparklelikeaghost
      @sparklelikeaghost 4 місяці тому +5

      They are competitors... They are competing for your business. You can't take two flights at the same time. You have to pick. Hence, competition.

    • @fatboy158
      @fatboy158 4 місяці тому +2

      @@sparklelikeaghost And Spirit flights are really cheap, so that drives other airlines to lower rates to stay competitive. Cheaper is good.

    • @randomlyfactual1943
      @randomlyfactual1943 4 місяці тому +1

      ​@@sparklelikeaghostIs it a prerequisite that competitors are financially liquid?
      Because if it is, Spirit Airlines has a problem

  • @Kenny-rp9iq
    @Kenny-rp9iq 4 місяці тому +5

    Monopolies are created through corporate subsides. The answer is always less government not more government.

  • @liftfresh4life
    @liftfresh4life Місяць тому +1

    Imagine preferring a company to go bankrupt over allowing a merger...

  • @skelty2214
    @skelty2214 4 місяці тому +2

    What people aren’t getting is that this merger was the best (and possibly only) way for these two airlines to stay in business. Thousands of jobs will be lost because of this.

  • @realhawaii5o
    @realhawaii5o 4 місяці тому +8

    Ryanair should buy Spirit.

    • @TheGalacticVoid
      @TheGalacticVoid 4 місяці тому

      Could they while still surviving?

    • @dragontoothless4351
      @dragontoothless4351 4 місяці тому

      They can't. US Law prohibits foreigners holding ownership of US airlines. Hence while Virgin had its name to Virgin America, it was completely separate from the Virgin Group.

    • @jwil4286
      @jwil4286 Місяць тому

      @@dragontoothless4351 that seems REALLY weird, since isn't the Virgin group owned by Delta anyway?

  • @promethius7820
    @promethius7820 4 місяці тому +35

    There should be at least 30 major competitors in almost every true and healthy capitalist market. It is that simple. Lack of competition leads to de facto carteling. Also these mutual funds tying things together that arent naturally involved is disruptive... Wonton consolidation of power needs to end. It needs to return to the american people and her middle class.

    • @gavinatkins2671
      @gavinatkins2671 4 місяці тому +7

      This. This is the reasons why corporate profits are skyrocketing. An astounding lack of competition. Both as customers and as workers.
      And with companies like black rock and Vanguard tying together things like media and pharmaceutical companies…..

    • @Frisbie147
      @Frisbie147 4 місяці тому +2

      capitalism results in less competition, that is the inevitable end result without the market being controlled, limitations on capitalism are needed to stop massive corporations buying up their competitors

    • @Pururut
      @Pururut 4 місяці тому +1

      ​@@Frisbie147corporatism is probably a better term
      Plus, socialism and communism don't have any real competition, and that's the furthest thing from capitalism, so it's not really an exclusively capitalist thing.
      However, I do agree capitalism does need some level of control, particularly anti-trust laws

    • @IW3527
      @IW3527 3 місяці тому

      ​@@Pururutlook into mixed market economies, feels like most of America refuses to acknowledge their existence

    • @jakehoward4881
      @jakehoward4881 2 місяці тому

      @@Frisbie147corporations aren’t part of capitalism, they are a form of government interference in capitalism.

  • @giladdrillich2350
    @giladdrillich2350 2 місяці тому +2

    Spirit is also a deeply unprofitable business that is at risk of bankruptcy

  • @nathanciminelli5900
    @nathanciminelli5900 28 днів тому +1

    More stuff like this needs to happen in Canada there's too many monopolies

  • @Daveraide
    @Daveraide 4 місяці тому +7

    It may be a unpopular view from viewers of this channel, but i suppport the merger. The 2 companies may actually be a,competetor of the other 4 in terms of quality. Having at least 4 competetors in an industry is more than some other industries i can think of(media, medicine, microwaves, zippers).

    • @RR-on4sk
      @RR-on4sk 4 місяці тому

      That never works. See cell phones, Walmarts, utility companies, etc. It will never work in our favor.

    • @Seirra54
      @Seirra54 2 місяці тому

      @@RR-on4skit literally did work with cell providers. T-Mobile and Sprint couldn’t compete with Verizon and AT&T, but post merger they can. They even managed to do that without raising prices and providing a better service.

  • @bohba13
    @bohba13 4 місяці тому +4

    when competition dies, the customer loses.

    • @yulfine1688
      @yulfine1688 4 місяці тому

      There is no competition though it's an illusion there hasn't been for decades..

  • @geraldineberish8957
    @geraldineberish8957 2 місяці тому +1

    I like how you always show both sides of the arguments so we can understand what is going on in these situations.

  • @FireStorm_117
    @FireStorm_117 Місяць тому +1

    See why can’t we use the same argument in places like Disney. Or Blackrock…

  • @PS3pwns
    @PS3pwns 4 місяці тому +55

    and now Spirit is filing bankruptcy, 12,000 people will be out of a job and a major low-cost competitor is gone.. ya that will definitely help the consumer, good job judge.

    • @tangomango8474
      @tangomango8474 4 місяці тому +28

      This still isnt a good argument for allowing more monopolies.

    • @Diviance
      @Diviance 4 місяці тому +11

      ...it will hurt the consumer less than letting someone else buy them.

    • @bookwyrm3994
      @bookwyrm3994 4 місяці тому +23

      ​@tangomango8474 How is it a monopoly when it's still the lowest ranked company in comparison to the other 4? If anything the merge would allow them to better compete with the other big wigs, no?

    • @noahtackett6264
      @noahtackett6264 4 місяці тому

      ​@bookwyrm3994 which would also help prices stay low. Spirit was failing either way so prices would go up either way so ultimately the government just proved yet again it'll go out of its way and spend way more money screwing the people over than helping them. Bunch of psychotic sadists tbh

    • @donatehilltop
      @donatehilltop 4 місяці тому +2

      Bankruptcy just means free money from the government

  • @dallascopp4798
    @dallascopp4798 4 місяці тому +29

    Do you know whats going to really hurt customers? Spirit going bankrupt and airline tickets rising regardless of the sale.

    • @netsquall
      @netsquall 4 місяці тому +3

      People seem to think chapter 11 means they are gone. Selling only makes $$$ to the shareholders or other partners of spirit (not sure if its public or not). That makes the rich richer and the consumer pays more no matter what. Chapter 11 means they are forced to divest costs, and yes that involves layoffs usually, sale of some aspects, but it allows them to safely reorganize without being sued into the ground by their creditors.
      Learn a little before assuming everthing is a zero sum game.

    • @faffywaffle561
      @faffywaffle561 4 місяці тому

      @@netsquallI’m sure keeping people’s jobs secure and their retirement in place is “only good for the shareholders” 😂😂 while spirit dissolves as a company and people are laid off from their jobs, you can tout your virtue on UA-cam comment sections about the success of a charged verdict from a backward judge 😂😂

    • @TheBanshee90
      @TheBanshee90 4 місяці тому

      @@netsquall On the eve of a recession, I don't see why the debtors would agree to a chapter 11 restructure with a failing airline... Why would I want that liability? It would be more likely the lenders would fight it tooth and nail until Chapter 13 is the likely outcome.

    • @Seirra54
      @Seirra54 2 місяці тому

      @@netsquall Spirit doesn’t have a viable path out of Chapter 11 right now though. With large chunks of their fleet being grounded due to an engine manufacturing fault (that won’t fully be fixed until 2026), they don’t have the means to return to profitability even if their debt was forgiven.
      Learn a little about the problem facing Spirit before you act like you know anything.

  • @tacocat318
    @tacocat318 4 місяці тому +1

    Remembering the same thing with tmobile and sprint: hey! Ive seen this before!

  • @Daf__XL
    @Daf__XL 4 місяці тому +1

    Does it really matter since the only successful businesses now are the ones that build military application?

  • @theguy9208
    @theguy9208 4 місяці тому +5

    Instead of merging i guess the smaller one will just die then?

    • @DynamicalisBlue
      @DynamicalisBlue 4 місяці тому +6

      They tend not to. This happens in Europe quite often but the companies go back to business as usual and try to be bought out by a different company instead (instead of a merge).

    • @Seirra54
      @Seirra54 2 місяці тому

      @@DynamicalisBlue that would work if Spirit wasn’t over-leveraged or had a path to viability. Spirit got caught in the perfect storm of issues with the PW1100G and their customer base not returning in large numbers after COVID. Spirit is known as an “Ultra Low Cost Carrier” who’s entire brand is built around low initial ticket price, so raising prices to the point where they’d be profitable again would likely kill them faster.

  • @TomarBoroDada
    @TomarBoroDada 4 місяці тому +62

    woah judges actually do their job ?

    • @Seirra54
      @Seirra54 2 місяці тому

      Only if they’ve got shorts on Spirit. Spirit will likely enter bankruptcy in the next 2 years due to the PW1100G issue and large debt payments coming due that they don’t have the leverage to cover.
      Judge just signed the unemployment check for every Spirit employee dumb enough to stay there for the next while.

    • @harveylong5878
      @harveylong5878 13 днів тому

      well when their corporate overlords come a knocking to collect on their generous campaign contributions

  • @francisphillipeck4272
    @francisphillipeck4272 Місяць тому +1

    Anytime they say "customers" they mean their profit margins. They don;t care about customers.

  • @jimstoesz3878
    @jimstoesz3878 2 місяці тому +1

    JetBlue and Spirit acting like we don't have receipts on their meetings about how much they were planning to jack up prices once competition dropped is so cute.

  • @prayingpilot3806
    @prayingpilot3806 4 місяці тому +6

    So....explain to me how forcing Spirit in bankruptcy and liquidation helps low cost flyers and competition ?

    • @ShadowmancerLord
      @ShadowmancerLord 4 місяці тому +1

      They aren't forcing anything of the sort.

    • @lowwwgan
      @lowwwgan 4 місяці тому +1

      how’re they being forced, was it the government’s fault initially that spirit airlines could not keep their operating costs smaller than their profits?

    • @prayingpilot3806
      @prayingpilot3806 4 місяці тому

      @@lowwwgan companies should be allowed merge if they need to to survive. They allowed the legacy airlines to merge to create the big four. It hypocritical to tell two small airlines they cannot . The government allowed this precedent. It's too late to pretend we care about antitrust rules now

    • @yulfine1688
      @yulfine1688 4 місяці тому

      ​@@lowwwganand instead by blocking the merge which would've helped in the long run they're going to go out of business entirely and surprise there's now less competition and surprise no one is going to replace them because surprise the government protects the major corporations already..
      You people have the intelligence of a frying pan

    • @Seirra54
      @Seirra54 2 місяці тому +1

      @@lowwwganthe entire argument from the judge was “a merger hurts consumer choice.” It absolutely is the judge’s fault that an airline headed for the heap gets blocked from the last chance it has at remaining viable.
      I bet you don’t even know why Spirit is in financial trouble.

  • @anonymous.3458
    @anonymous.3458 4 місяці тому +85

    If you're blocking an airline from become a slightly larger airline, but still smaller than the top four, that isn't anti-trust that's anti-competition.

    • @user-uk9gs3ni8z
      @user-uk9gs3ni8z 4 місяці тому +3

      What?

    • @baronbrummbar8691
      @baronbrummbar8691 4 місяці тому +3

      @@user-uk9gs3ni8z the argument of the judge is tat merging the companies creats to big of a companie
      -
      the companie says that even with the merg we would be only nummber 5 in sice
      and we need this merg to be able to compete with the big guys

    • @thes1lv3rwolf27
      @thes1lv3rwolf27 4 місяці тому

      ​@baronbrummbar8691 wtf did you have a stroke? 😅

    • @baronbrummbar8691
      @baronbrummbar8691 4 місяці тому +2

      @@thes1lv3rwolf27 no i am just not a native speaker ...... i am a kraut
      (and looking at the time i go to bed now)

    • @Jamaramlolz
      @Jamaramlolz 4 місяці тому +4

      this was my read as well

  • @brookeadams2115
    @brookeadams2115 27 днів тому +1

    why did i think it was spitit ridding free😂

  • @l3176l
    @l3176l 2 місяці тому +1

    Good, monopoly busting isn’t aggressive enough in the US.
    *Eyes up the pharmaceutical industry.*

  • @isaach5563
    @isaach5563 4 місяці тому +18

    So glad anti trust is coming back

  • @dylanshaffer2184
    @dylanshaffer2184 4 місяці тому +9

    Honestly the JetBlue merger should go through, Spirit is going down and even the heads of the company see that merging with JetBlue is the best way out for Spirit. If the merger ultimately doesn’t go through, I say Spirit merge with Frontier. But in either case, the best scenario is one where Spirit is no longer flying.

    • @jwil4286
      @jwil4286 Місяць тому +1

      fwiw, the judge did mention that he had to look at this on a route-by-route basis. this means that the impending Alaska-Hawaiian merger (which seems to be more of an AirFrance-KLM style merger than the mergers that created the Big 4) will be harder to block, as only 12 routes overlap (with only 3 duopolies) out of many, many more. so a judge could use this ruling, say "only three routes would become monopolies under this merger, so that is not sufficient to block it," and let it go through.

  • @user-fp1pr4jx6d
    @user-fp1pr4jx6d Місяць тому

    I don't understand how they said no to airlines no to grocery store but allow a handful to own ALL media

  • @justinhaynes9972
    @justinhaynes9972 2 місяці тому

    Ty for the shorts. Very entertaining and informative. Your vids are my fav.

  • @odnewdylee
    @odnewdylee 4 місяці тому +4

    If only the courts would treat pharmaceutical companies similarly.

    • @KiroSP
      @KiroSP 4 місяці тому +1

      Well ya see pharmaceutical have the money to ensure they don't

    • @yulfine1688
      @yulfine1688 4 місяці тому

      ​@@KiroSPthe government allows it not because of money the government subsidizes them nearly 200 billion yearly check your information bud..
      They collaborate as they do with oil and other major industries and corporations

  • @theroguenetwork1083
    @theroguenetwork1083 4 місяці тому +5

    Honestly this is one of the few mergers I support. Anything to get rid of those fucking tosspots at Spirit Airlines.

  • @tiredman99
    @tiredman99 2 місяці тому +1

    I wish antitrust and anti monopoly laws would be used more

  • @DinoLoverGaming
    @DinoLoverGaming 4 місяці тому +1

    "this merger would only hurt customers"
    I doubt it would hurt any more than Spirit's cardboard airplanes

  • @kirakuroe
    @kirakuroe 4 місяці тому +20

    ”We want to do this because it would make us even more powerful on already limited industry!”
    ”Yeah that’s exactly the reason we aren’t gonna let you”

    • @Seirra54
      @Seirra54 2 місяці тому +1

      Now we’ll get to watch Spirit collapse under their debt because many of their 320Neos will be parked through 2025 due to a manufacturing defect.

  • @ethernet01
    @ethernet01 4 місяці тому +5

    instresting how the government has gotten a lot more agressive towards monopolies, it was about time

    • @faffywaffle561
      @faffywaffle561 4 місяці тому +3

      How are they battling monopolies when Spirit is about to dissolve as a company because of the decision?

    • @xaviersmith5154
      @xaviersmith5154 4 місяці тому

      Wtf is wrong with you people? The government does not own these businesses. They shoupdnt have any say at all.

  • @merkazoidduff7651
    @merkazoidduff7651 3 місяці тому

    Name a single monopoly that’s ever existed as a result of the free market and without government influence.

  • @AaronCMounts
    @AaronCMounts 3 місяці тому +1

    It's about time we see the SEC do more than pay lip-service to anti-trust practices.

  • @dragontiger624
    @dragontiger624 4 місяці тому +4

    Hmmmmmmm. Monopoly

  • @charliekowittmusic
    @charliekowittmusic 4 місяці тому +3

    Remember this when people tell you unfettered Capitalism “promotes competition”.

    • @megahunterkiller
      @megahunterkiller 4 місяці тому +1

      The airline industry is one of the most regulated industries in the economy. What are you on about?

    • @charliekowittmusic
      @charliekowittmusic 4 місяці тому

      @@megahunterkiller Your comment leads me to believe that you didn’t watch the video, or read my comment. In which case, idk what you’re doing here exactly.
      The video wasn’t about regulation within the aviation industry. It was about an anti-monopoly court decision.
      Neoliberal Conservatives will tell you that government intervention inhibits competition. But this is yet another example of government stopping capitalists from merging and monopolizing an entire industry.

    • @megahunterkiller
      @megahunterkiller 4 місяці тому

      @@charliekowittmusic How can an industry that is heavily regulated be an example of "unfettered capitalism"?

    • @charliekowittmusic
      @charliekowittmusic 4 місяці тому

      @@megahunterkiller Are you trolling me? I didn’t say this was an example of unfettered Capitalism. I said this already.
      It’s an example of the opposite, and I’m thankful for it because without antitrust laws, they would’ve merged at the expense of the consumers.
      Incase English is your second language, a rephrase of my original comment could read as “Remember how useful these regulations were, the next time somebody advocates removing them.”
      Is that helpful at all?

    • @charliekowittmusic
      @charliekowittmusic 4 місяці тому

      @@megahunterkiller AKA the capitalists tried to merge and kill competition. Without regulation that’s all they would do.

  • @Coldsteak
    @Coldsteak 4 місяці тому

    i'd like to think all of these videos are portals to alternate realities where everything happens like normal but everyone is physically replaced by the same single person

  • @rosslischka9337
    @rosslischka9337 4 місяці тому

    I sure do love when the government meddles in private affairs. The Feds couldn’t keep their grimy little hands out of people’s business yet again.

  • @henrystanley8291
    @henrystanley8291 4 місяці тому +3

    Yeeeeeesssssssssss! BIDEN 2024!!!!!

  • @critter18
    @critter18 4 місяці тому +7

    Why is this the government’s business?? Isn’t Spirit just gonna go bankrupt anyway? That’s the whole reason they were merging, right?

    • @netsquall
      @netsquall 4 місяці тому +1

      Chapter 11 doesn't mean going out of business. It's an organized bankruptcy. It is not insolvency which is a different kind of bankruptyc.. i forgot which chapter. Lots of companies go into Chapter 11... do they want to be bought out? Yes because then their shareholders make some money out of it. Doesn't mean Spirit is going away.

    • @RR-on4sk
      @RR-on4sk 4 місяці тому

      Read about monopolies and you'll find out why it's the governments business

  • @mockdr
    @mockdr 3 місяці тому

    I didn’t even know what JetBlue was until the Burger King guy video came out

  • @_PannieCake_
    @_PannieCake_ 11 днів тому

    So both sides agreed to a merge and the court is saying no? How the heck to the courts get to say "You cant do legitimate business"?

  • @itstaylor2137
    @itstaylor2137 4 місяці тому +5

    We need to beef up the anti trust laws

  • @corsh2715
    @corsh2715 4 місяці тому +3

    "But we really, REALLY wanna start a monopoly, pretty please 🥺?

    • @yulfine1688
      @yulfine1688 4 місяці тому +2

      It would be far from a monopoly buddy..

  • @CosmicL407
    @CosmicL407 4 місяці тому

    The way the us government subsidizes all these airlines its a shocker we dont just have public options

  • @Kerbal18
    @Kerbal18 3 місяці тому +1

    Left out the part where spirit is about to go bankrupt

  • @cyberneticsiren
    @cyberneticsiren 4 місяці тому +4

    Omg I love it when the government is unexpectedly based

    • @Seirra54
      @Seirra54 2 місяці тому +1

      I too enjoy watching the government sent 12k employees towards unemployment.

  • @riverdoge
    @riverdoge 4 місяці тому +3

    I feel like this was the worst outcome. Spirit needed that deal to survive, now it's most likely going to go bankrupt and have to restructure. There will still be one less airline, but the big 4 don't face any competition because of this decision, meaning they'll raise their prices.

    • @ShadowmancerLord
      @ShadowmancerLord 4 місяці тому

      This is a rumor. Spirit themselves have said they have no plans to file bankruptcy.

  • @aliabdallah102
    @aliabdallah102 Місяць тому +1

    We should just antitrust everything

  • @mudpie6927
    @mudpie6927 4 місяці тому +1

    They want to buy spirit airlines?! I thought you couldn't pay someone to do that!

  • @ItalianCountryball11
    @ItalianCountryball11 4 місяці тому +9

    Just let JetBlue buy Spirt! 😂

  • @HpToujoursPur
    @HpToujoursPur Місяць тому

    "Why have 4 major airlines when you can have 5" is basically their argument.

  • @GusIsntDed
    @GusIsntDed 3 місяці тому

    YO THE MARIMBA IN THE BACKGROUND GOES CRAZZY

  • @EternalDM
    @EternalDM 4 місяці тому

    Acquisitions hurt everyone but the one acquiring

  • @joshhawkins2765
    @joshhawkins2765 3 місяці тому +1

    The four other airlines really must have better lobbying teams

    • @harveylong5878
      @harveylong5878 13 днів тому

      as the saying goes money talks, bullshit walks. JB, Spirit obviously couldnt walk the walk

  • @votekyle3000
    @votekyle3000 4 місяці тому +1

    Combined they’d only have a 10% market share when the big 4 have 15% each isn’t a monopoly, it’s competition

    • @KiroSP
      @KiroSP 4 місяці тому

      No that's an oligopoly

    • @yulfine1688
      @yulfine1688 4 місяці тому

      ​@@KiroSPyou're actually correct an oligarchy under corporatism..

  • @m.d.1836
    @m.d.1836 3 місяці тому

    Meanwhile utility companies are granted contracts to lock down areas with little to no competition and basically set their prices wherever they want 😂

  • @champpayne83
    @champpayne83 4 місяці тому +1

    The only reason this is being blocked is because the judges think they already let Spirit merge with Tmobile 😅

  • @Bariom_dome
    @Bariom_dome 5 днів тому

    I'm glad. The market needs competition

  • @Daikamaitachi
    @Daikamaitachi 3 місяці тому

    It's the notebooks and folders for me, lol.

  • @FullOfMalarky
    @FullOfMalarky 4 місяці тому

    Virtual monopolies is all we have in Canada. It’s not fun

  • @yellowscarf8812
    @yellowscarf8812 3 місяці тому

    Where was these brain cells during every movie studio bought out these past 5 years

    • @LoveOverwhelming
      @LoveOverwhelming Місяць тому

      There are more movie studios, they don't have an effective monopoly, and they don't provide a necessary service.
      Each M&A is judged individually.

  • @ITZTHEDEANN
    @ITZTHEDEANN 4 місяці тому

    “I have 113 reasons why” would’ve been better for the reference

  • @andy313131313136
    @andy313131313136 4 місяці тому +1

    Personally I think that only showing 1 of the positive reasons for the merger due to time constraints is a little bit disappointing.

  • @richardgonzalez9773
    @richardgonzalez9773 3 місяці тому

    The savings is never passed onto the customers.

  • @HIOAZA1523
    @HIOAZA1523 2 місяці тому +1

    They need to trust bust the existing airlines

  • @joshuaychung
    @joshuaychung 4 місяці тому

    Where were all these judges when United and Continental were merging to create one big crappy airline rather than 2 big crappy airlines?

  • @tkatvibez9567
    @tkatvibez9567 4 місяці тому +1

    Anndddddddss now spirit is going under. Gotta love it

  • @lexsombersunrise
    @lexsombersunrise 4 місяці тому

    Literally just talked about this in my Marketing class the same night I saw this short, wild

  • @felixuchies4688
    @felixuchies4688 3 місяці тому

    The fact they let 1-4 get so big theyre bigger than 6&7 combined is crazy

  • @MaxisaBandKid
    @MaxisaBandKid 3 місяці тому

    J.D Rockerfeller and Andrew Carnegie are punching the air rn

  • @pastorslant
    @pastorslant 4 місяці тому

    Wait, since when does the government care about the people?

  • @TabysHere
    @TabysHere Місяць тому +2

    Let them be! It’s the exact same reasoning and their’s is better so let Spirt be bought out!

  • @numnut1516
    @numnut1516 4 місяці тому +2

    As usual anti trust isn’t even mentioned…..