More than three generations ago, back when the Los Angeles
Dodgers were still the Brooklyn Dodgers, they used to have trouble getting past
the New York Yankees in the World Series after running roughshod in the
National League.
The team's fans used to exclaim "we wuz robbed," a
mantra picked up by the New York City tabloid newspapers, including the
incorrect spelling.
That’s how JetBlue Airways must feel right now.
Robbed.
By now, you have probably heard the news that a federal judge
has sided with the Department of Justice and blocked a proposed merger between
JetBlue and Spirit Airlines. The judge agreed with the DOJ that competition
would be affected and decreased and ruled that Spirit should stay its own
airline for now.
Why?
This seems nonsensical and is a slap in the face of the free
enterprise system. It’s like going to the grocery to pick up a loaf of bread.
If you want to choose between Wonder Bread and a store brand based on price, go
right ahead. If you must select Bread Wonder because Kroger or Publix bread
isn't available, it is what it is.
That’s how capitalism works.
The ruling by the judge certainly doesn't preclude Spirit from
merging with another carrier, such as its original suitor, Frontier Airlines.
Some people looking at this from the outside might not have an opinion either
way. But I bet shareholders in Spirit are interested in having their share
price return doubled.
You can certainly understand the motivation, but the American
government should refrain from becoming involved in private business practice.
The government should understand the disparity in the way
jurisprudence works.
By that, I mean you can't even say that a precedent has been set
here with the JetBlue and Spirit decision. What happens if another judge rules
the opposite in a similar case? What happens if Alaska Airlines' potential
merger with Hawaiian Airlines goes before a court?
The government says that the $3.8 billion deal would reduce
competition.
How do they know?
The judge said that a merger “would likely place stronger competitive
pressure on the larger airlines in the country. At the same time, however, the
consumers that rely on Spirit’s unique, low-price model would likely be
harmed.”
Funny, but nobody said that
when Delta bought out Northwest Airlines or American merged with US Air.
For the latest travel news, updates and deals, subscribe to the daily TravelPulse newsletter.
Topics From This Article to Explore
