The proposed merger wouldn’t just eliminate another discount option for travelers; it would also remove an essential reason for the four mega-carriers to avoid “abuses” directed toward the flying public. If the Big Four airlines are no longer afraid of losing passengers to Spirit, the result may be skies that are even less friendly than they already are. If the JetBlue / Spirit deal is ultimately allowed to go forward, discount airfares in the U.S. will shrink by 50% overnight.
Earlier in 2022, the Spirit Board and executives concluded that a merger between Spirit and JetBlue could never be approved by regulators and was, therefore, “illusory.” The Board then rejected an earlier offer by JetBlue. JetBlue offered to “sweeten the deal” by paying the shareholders $400 million if the proposed combination failed. Thus the shareholders could move forward with the JetBlue combination without any risks. The $400 million to shareholders was to quiet the shareholder’s knowledge of the potential illegality of the acquisitions and was little more than “hush money” according to the suit.
All of this poses the question, What’s the end game? Is this all intentional? Greed seems to have airlines so vexed that they can’t see that they could be potentially pricing the consumer out, or could it all just be a ploy to create an ecosystem of, “our way or the highway.’ The entire notion of all of this seems to be rooted in a mindset to force customers to either pay the price or seek other transportation options. In doing so this could stand to hurt us all by driving ridership down thusly causing jobs to potentially be cut.
The airline’s pain is self-inflicted, which is puzzling if we assume management at the carrier is competent.
In September, ground Workers at the airline petitioned to unify with the Machinists Union. The National Mediation Board is reviewing the signatures and is expected to schedule an election within the next few weeks. To the surprise of many veteran Union organizers, JetBlue executives seemed to comply with union election rules, opting not to use many of the stalling tactics typical of anti-union companies, which JetBlue historically has been.
Playing by the rules has so far spared JetBlue from raising the hostility of the Department of Transportation, led by strongly pro-union Pete Buttigieg. Were the airline to face the double threat of challenges from both the Justice Department and Transportation, it would suddenly become hard to see the path forward for any merger.
For his part, Secretary Buttigieg has voiced concerns over the growth of non-union companies within America’s transportation networks. The JetBlue / Spirit merger would create another large airline that isn’t completely unionized.
If the Department of Transportation ultimately decides to oppose the deal, it could spell almost certain doom for JetBlue’s acquisition plans. The DOT has the power to unilaterally deem the arrangement to be not in the public’s interest and nix the merger – without needing to go to court or gain the approval of any other agency.
While JetBlue executives seem to understand the dangers the merger could face from an annoyed DOT, Ground Operations supervisors are struggling to grasp the concept. At virtually every JetBlue location, low-level supervisors have been unlawfully engaging in abusive anti-union tactics. Including unlawfully confiscating union property and threatening Crewmembers – all of which have been reported to Federal Regulators.