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美国国家公共电台 NPR--Consumer advocates want the DOJ to move against JetBlue-Spirit merger

时间:2023-11-22 02:53来源:互联网 提供网友:nan   字体: [ ]
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Consumer advocates want the DOJ to move against JetBlue-Spirit merger2

Transcript3

The Justice Department is expected to decide soon whether to file a lawsuit5 to block the JetBlue-Spirit Airlines merger, and some antitrust advocates are hoping they will take that legal action.

The Department of Justice had an initial deadline of Feb. 28, but has not yet decided6 on a legal course of action.

In October, Spirit shareholders7 voted to accept JetBlue's $3.8 billion hostile takeover bid for the ultra low cost carrier, beating out another ULCC, Frontier, for the airline. The deal was expected to close on Tuesday, but the airlines have agreed to a brief delay.

If the merger wins regulatory approval and is finalized8, the combination of JetBlue and Spirit would create the 5th largest airline in the U.S., with about 10% of the domestic market share.

But antitrust regulators in the Biden administration have raised concerns about the deal, as consumer advocates say it would reduce competition in the air travel market, leading to fewer choices for travelers and higher fares.

Late last month, JetBlue and Spirit Airlines made a last-minute attempt to win Justice Department support, arguing that a merger would lower ticket prices across the industry.

Robin9 Hayes, JetBlue CEO, and Ted4 Christie, Spirit Airlines CEO, met with the leaders of the Justice Department's antitrust division where they described their vision to secure low fares within the merger company.

If the companies merge1, JetBlue says it would reconfigure the interior of Spirit's planes in an effort to increase legroom. To keep fares low, Spirit maintains high passenger capacity on its planes. JetBlue plans to spread the rows between seats a little farther apart, to mirror its seat configuration10. This would decrease the number of seats on Spirit's airplanes, which would normally force an increase in fares, but JetBlue and Spirit officials say this will not be the case, arguing that their combined airline will be more efficient with planes spending more time in the air and less time on the ground.

The airlines also argue the merger will be good for competition, for greater efficiency will allow them to fly to more destinations, which will lower prices, too.

Diana Moss11, the president of the American Antitrust Institute, an organization that promotes competition to protect consumers and businesses, argues that the merger will affect airline competition. She says a lack of competition will weaken the airline industry and make it harder to work through unforeseen circumstances, like disastrous12 weather and COVID.

Moss also says the merger will harm workers, but some airline unions support the JetBlue-Spirit merger. Traditionally, labor13 unions do not support major airline mergers14, but this time some labor unions say this merger will benefit workers and consumers.

"Our union has experience with eight mergers in the past ten years," says Sara Nelson, president of the Association of Flight Attendants-CWA.

"The JetBlue-Spirit merger adds competition to the airline industry that creates more power for workers, along with choice and comfort that benefits consumers. We urge regulators to work diligently15 to ensure the financial merger closing occurs in the near term so that Flight Attendants, other workers, and consumers can access the benefits of the merger as soon as possible."

The union says the merger will also create more competition against four airlines that currently occupy 81% of the aviation industry, American, Delta16, Southwest and United. Spirit flights attendants say they are looking forward to the modified airplanes.

Although some flight attendants support the merger, consumer groups like the American Economics Liberties Project argue that the merger will reduce competition and flights, cut workers and increase the average price of airfares across the nation. As the debate continues, workers and consumers anticipate the Justice Department's decision.

Morning Edition's Leila Fadel recently spoke17 with Diana Moss about the actions the Department of Justice might take to block the Spirit Airlines-JetBlue merger. She says she believes competition is a top factor in this debate.

This interview has been edited for length and clarity.

Mergers can affect labor by reducing bargaining power of pilots and other airline workforces18, and it's one less competitor in our passenger aviation system. So losing an important competitor can really contribute to having sort of a fragile system that isn't very resilient to withstand shocks, like what we saw with weather at the end of 2022 and even COVID.

What happens with these types of joint19 ventures is, the more expensive workforces are displaced with the lower, the less expensive workforces. But that in itself is not necessarily a bad thing. But when it results from a joint venture, for example, eliminating competition, that's when we start to worry.

On airline competition

We're really looking at how on important routes from origins to destinations, how the merger will affect competition, and it really does eliminate an important competitor. And when you have that in markets where there isn't a lot of competition anyway, as a result of many, many years of consolidation20, then that really does start raising questions about higher fares and lower quality for consumers. We maintain important resiliency in our air system by having more competition instead of less.

On how the DOJ could respond

The Biden administration is committed to promoting competition and slowing down the kind of consolidation that we've seen in the U.S. economy for many years. And the only way to do that really is for the DOJ to evaluate the merger, to file a lawsuit on the grounds that it's illegal and it would really substantially reduce competition.

Depending on how the airlines want to respond to that, there could be a settlement. We do not favor a settlement because we don't think that would really restore competition or they could end up in federal court litigating this case in front of a judge. I think that is probably the best way to ensure that consumers are not harmed by this merger and that workers, various labor forces are not harmed, and that we maintain important resiliency in our air system by having more competition instead of less.

David Schaper contributed reporting.


点击收听单词发音收听单词发音  

1 merge qCpxF     
v.(使)结合,(使)合并,(使)合为一体
参考例句:
  • I can merge my two small businesses into a large one.我可以将我的两家小商店合并为一家大商行。
  • The directors have decided to merge the two small firms together.董事们已决定把这两家小商号归并起来。
2 merger vCJxG     
n.企业合并,并吞
参考例句:
  • Acceptance of the offer is the first step to a merger.对这项提议的赞同是合并的第一步。
  • Shareholders will be voting on the merger of the companies.股东们将投票表决公司合并问题。
3 transcript JgpzUp     
n.抄本,誊本,副本,肄业证书
参考例句:
  • A transcript of the tapes was presented as evidence in court.一份录音带的文字本作为证据被呈交法庭。
  • They wouldn't let me have a transcript of the interview.他们拒绝给我一份采访的文字整理稿。
4 ted 9gazhs     
vt.翻晒,撒,撒开
参考例句:
  • The invaders gut ted the village.侵略者把村中财物洗劫一空。
  • She often teds the corn when it's sunny.天好的时候她就翻晒玉米。
5 lawsuit A14xy     
n.诉讼,控诉
参考例句:
  • They threatened him with a lawsuit.他们以诉讼威逼他。
  • He was perpetually involving himself in this long lawsuit.他使自己无休止地卷入这场长时间的诉讼。
6 decided lvqzZd     
adj.决定了的,坚决的;明显的,明确的
参考例句:
  • This gave them a decided advantage over their opponents.这使他们比对手具有明显的优势。
  • There is a decided difference between British and Chinese way of greeting.英国人和中国人打招呼的方式有很明显的区别。
7 shareholders 7d3b0484233cf39bc3f4e3ebf97e69fe     
n.股东( shareholder的名词复数 )
参考例句:
  • The meeting was attended by 90% of shareholders. 90%的股东出席了会议。
  • the company's fiduciary duty to its shareholders 公司对股东负有的受托责任
8 finalized 73d0ccbca69b94ee4cd7fc367a8ac9fc     
vt.完成(finalize的过去式与过去分词形式)
参考例句:
  • The draft of this article has been finalized [done]. 这篇文章已经定稿。 来自《现代汉英综合大词典》
  • The draft was revised several times before it was finalized. 稿子几经删改才定下来。 来自《现代汉英综合大词典》
9 robin Oj7zme     
n.知更鸟,红襟鸟
参考例句:
  • The robin is the messenger of spring.知更鸟是报春的使者。
  • We knew spring was coming as we had seen a robin.我们看见了一只知更鸟,知道春天要到了。
10 configuration nYpyb     
n.结构,布局,形态,(计算机)配置
参考例句:
  • Geographers study the configuration of the mountains.地理学家研究山脉的地形轮廓。
  • Prices range from $119 to $199,depending on the particular configuration.价格因具体配置而异,从119美元至199美元不等。
11 moss X6QzA     
n.苔,藓,地衣
参考例句:
  • Moss grows on a rock.苔藓生在石头上。
  • He was found asleep on a pillow of leaves and moss.有人看见他枕着树叶和苔藓睡着了。
12 disastrous 2ujx0     
adj.灾难性的,造成灾害的;极坏的,很糟的
参考例句:
  • The heavy rainstorm caused a disastrous flood.暴雨成灾。
  • Her investment had disastrous consequences.She lost everything she owned.她的投资结果很惨,血本无归。
13 labor P9Tzs     
n.劳动,努力,工作,劳工;分娩;vi.劳动,努力,苦干;vt.详细分析;麻烦
参考例句:
  • We are never late in satisfying him for his labor.我们从不延误付给他劳动报酬。
  • He was completely spent after two weeks of hard labor.艰苦劳动两周后,他已经疲惫不堪了。
14 mergers b4ab62fffa9919cbf1e93fcad6d3150c     
n.(两个公司的)合并( merger的名词复数 )
参考例句:
  • Mergers fall into three categories: horizontal, vertical, and conglomerate. 合并分为以下三种:横向合并,纵向合并和混合合并。 来自辞典例句
  • Many recent mergers are concentrated within specific industries, particularly in retailing, airlines and communications. 现代许多合并企业集中进行某些特定业务,在零售业、民航和通讯业中更是如此。 来自英汉非文学 - 政府文件
15 diligently gueze5     
ad.industriously;carefully
参考例句:
  • He applied himself diligently to learning French. 他孜孜不倦地学法语。
  • He had studied diligently at college. 他在大学里勤奋学习。
16 delta gxvxZ     
n.(流的)角洲
参考例句:
  • He has been to the delta of the Nile.他曾去过尼罗河三角洲。
  • The Nile divides at its mouth and forms a delta.尼罗河在河口分岔,形成了一个三角洲。
17 spoke XryyC     
n.(车轮的)辐条;轮辐;破坏某人的计划;阻挠某人的行动 v.讲,谈(speak的过去式);说;演说;从某种观点来说
参考例句:
  • They sourced the spoke nuts from our company.他们的轮辐螺帽是从我们公司获得的。
  • The spokes of a wheel are the bars that connect the outer ring to the centre.辐条是轮子上连接外圈与中心的条棒。
18 workforces 27a0c16621cdc7b12c54c03ea876dda1     
全体员工( workforce的名词复数 ); (国家或行业等)劳动力; 劳动大军; 劳动人口
参考例句:
  • The Web has allowed companies to become more distributed and workforces to become more flexible. 网站已允许各公司更加分散,工作队伍也变得更加灵活。
  • They are large centres of business in their own with skilled workforces and business-friendly environments. 从自身条件来说,它们都是大型商业中心,拥有大批技能型劳动力和友好的商业运作环境。
19 joint m3lx4     
adj.联合的,共同的;n.关节,接合处;v.连接,贴合
参考例句:
  • I had a bad fall,which put my shoulder out of joint.我重重地摔了一跤,肩膀脫臼了。
  • We wrote a letter in joint names.我们联名写了封信。
20 consolidation 4YuyW     
n.合并,巩固
参考例句:
  • The denser population necessitates closer consolidation both for internal and external action. 住得日益稠密的居民,对内和对外都不得不更紧密地团结起来。 来自英汉非文学 - 家庭、私有制和国家的起源
  • The state ensures the consolidation and growth of the state economy. 国家保障国营经济的巩固和发展。 来自汉英非文学 - 中国宪法
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