Leaked Documents Suggest JetBlue Could Drive Spirit Prices 40% Higher
Joe Cortez August 24, 2023
Law360 reports the plan to hike airfares was revealed in documents incorrectly redacted and submitted by the class action plaintiffs in a class action against JetBlue.
Leaked Information Reveal Flight Prices Could Jump Between 25% to 40%
After winning over Spirit Airlines’ board in a competition against fellow ultra-low-cost-carrier Frontier Airlines, the New York-based carrier has been quiet about their plans. Once the merger was announced, a group of flyers took JetBlue to federal court in Massachusetts, arguing that the merger may result in violations of antitrust laws. The case is still being litigated, and no decision has been made for either party.
While nothing has been formally announced, a purported document erroneously redacted by the plaintiffs’ attorneys and submitted to the court arguing against the carrier’s motion for summary judgement could project what JetBlue has in mind for Spirit. The document is no longer available in the public docket.
If the new all-Airbus airline were to form, the plaintiff’s document alleges former Spirit aircraft would not only receive a new coat of paint, but also see 24 seats removed from each aircraft. With 200 airframes in the Spirit fleet, that would reduce the airline’s capacity by 4,800.
The number “24” would also play into how much fares could rise compared to where they are today. The leaked document reportedly argued “JetBlue plans to increase fares on aircraft it acquires from Spirit by at least 24%.” The document reportedly further argues that they have “direct evidence” that the price hikes could be as much as 40%.
One of JetBlue’s core arguments for the merger was creating a larger airline with Spirit, providing a nationwide low-cost network operating in underserved communities. The leaked document suggests that if the current Spirit routes were to get cut – as JetBlue has promised in some situations – it could result in a market-wide price hike of 30%.
The plaintiffs in the case, JetBlue, or Spirit Airlines have not commented on the allegations from the purportedly leaked document. FlyerTalk could not retrieve an independent copy of the document from the court’s docket to independently verify the information.
Keep up with all things JetBlue and Spirit Airlines on the FlyerTalk Forums.
Feature image courtesy: JTOcchialini/Flickr/CC BY-SA 2.0
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Mergers are all about reducing competition solely to enable prices to increase. At this point, mergers have progressed to the point where it doesn't make much difference anyway.
The DOJ has utterly failed the American consumer by failing to draw a line in the sand to stop consolidation in this industry. At a certain point, re-regulation is going to be not only more attractive, but the only sensible antidote to the lack of competitive tension caused by this antitrust failure. I cannot imagine a more ironic, full-circle antithesis.
So a group of flyers write up letters that make claims that include the words "plan to" (with no evidence, just claiming they have evidence, and shouldn't that be in the documents?) and "could" and none of this can be verified...This is just filler...
When you say "flyers write up letters" you are referring to the incorrectly redacted document submitted for discovery by Jetblue attorneys. Meaning internal plans what management intends to do once the merger is completed. It's pretty simple to understand.
The article is woefully unclear since it doesn't say whether the redacted document came from JetBlue or some other speculative source. If JetBlue once made a statement "Yeah, we'll raise those Spirit airfares by 40%", that's one thing. It's quite another for some goober with a basic calculator to say "Well, I think they are going to take some seats out of the Spirit cattle cars so they must be raising air fares".
Not surprising... nothing good will come of this merger. Fares will of course increase significantly, and nothing will get better with the service or experience. JetBlue has already demonstrated their own system and infrastructure can't handle their own business. Add Spirit into the mix? Recipie for a total disaster.
Well what's the problem if it's a 40% better experience?
It could price out people and communities who don't care about the "travel experience" as much as getting to their destination for a lower fare...
That's what Greyhound is for. We need to get out of this collective mentality that everyone is entitled to whatever service they want at a price they want. If you can't afford something, like travel, you don't do it.
Yeah, try taking Greyhound to Europe or Hawaii. Elitist.
Spirit flies to Europe?
Yeah but the mentality that is being pushed now is that everyone is 'entitled' to everything they want.