(News Bulletin 247) – JetBlue has released updated data that confirms the airline’s disruptive role on dominant incumbent carriers and the pro-competitive impact the merger with Spirit will have on the industry.
According to the analysis, JetBlue is three times more effective than Spirit in lowering competitor fares. ‘ By partnering with Spirit, JetBlue will be able to lower traditional carrier fares on more routes, benefiting more travelers than if JetBlue and Spirit continued to operate as independents .
Also according to the study, JetBlue and Spirit compete primarily with other carriers, not with each other, and the proposed divestments will further reduce this limited overlap.
Finally, the JetBlue-Spirit combination would be a solution to the lack of competition from the big four airlines.
According to the data, JetBlue-Spirit will only hold around 9% market share, compared to 16-24% for each of the four largest airlines, but the additional scale and ability to grow will result in competition significant.
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