SPIRIT AIRLINES SHAREHOLDERS APPROVE TAKEOVER BY JETBLUE
A strong case could be made that a successful merger between the two smaller airlines will enhance competition and lower prices by creating a larger discount airline. Today, 70% of domestic flights are on four carriers — American, Delta, Southwest, and United. JetBlue controls just about 6% of the market .
According to JetBlue’s merger plans, the airline will leverage the infrastructure, employees, and management of Spirit to schedule 1,700 more flights to 125 cities in 30 countries. This benefits — it doesn’t hurt — consumers with more choices.A Massachusetts Institute of Technology study has found that when JetBlue enters a market, it reduces airline fares by $32 each way on average.
No, it won't , bc merger, just add more cost less competition. No more mergers !!
First time that I ever read that a merger would lead to more competition. Krugman write this?
Please explain how having few options will decrease ticket prices. In the past few options means less competition thus higher prices