Intermarkets' Privacy Policy
Support


Donate to Ace of Spades HQ!


Contact
Ace:
aceofspadeshq at gee mail.com
Buck:
buck.throckmorton at protonmail.com
CBD:
cbd at cutjibnewsletter.com
joe mannix:
mannix2024 at proton.me
MisHum:
petmorons at gee mail.com
J.J. Sefton:
sefton at cutjibnewsletter.com


Recent Entries
Absent Friends
Bandersnatch 2024
GnuBreed 2024
Captain Hate 2023
moon_over_vermont 2023
westminsterdogshow 2023
Ann Wilson(Empire1) 2022
Dave In Texas 2022
Jesse in D.C. 2022
OregonMuse 2022
redc1c4 2021
Tami 2021
Chavez the Hugo 2020
Ibguy 2020
Rickl 2019
Joffen 2014
AoSHQ Writers Group
A site for members of the Horde to post their stories seeking beta readers, editing help, brainstorming, and story ideas. Also to share links to potential publishing outlets, writing help sites, and videos posting tips to get published. Contact OrangeEnt for info:
maildrop62 at proton dot me
Cutting The Cord And Email Security
Moron Meet-Ups






















« Mid-Morning Art Thread | Main | After Staging an Insurrection for a Week and Attempting to Steal an Election By Counting Invalid Votes, Bob Casey Finally Concedes the Race for PA Senate to the Winner Dave McCormick »
November 22, 2024

THE MORNING RANT: WSJ Advocates for Airline Consolidation into an Even Tighter Oligopoly…to Enhance Competition

Spirit Airlines is in the news as its massive debt burden can no longer be serviced, especially with its pricing model and cost structure, forcing it to declare bankruptcy. The discount airline is not going out of business, or at least not for now, but is reorganizing through bankruptcy court. Its stockholders have had their investments wiped out, and the bondholders are getting a haircut - they too may lose everything. If the reorganization doesn’t work out, Spirit may eventually shut down.

This is all part of the cycle of failed startups, successful corporations, wealth creation, creative destruction, etc. that we who champion capitalism understand and expect.

But the “pro-business” editors at the Wall Street Journal are appalled that the government has not come to Spirit’s rescue by consenting to a competition-suppressing merger with JetBlue Airlines. That merger would have reduced the number of major airlines to just five, who combined would have 78% control of the market. In an editorial earlier this week, the WSJ Editorial Board opined that not allowing the airlines to coalesce into an even tighter oligopoly is “anti-business” and would result in “less competition.”

For the record, I am assertively pro-free market and pro-capitalism, but I am distressed how the term “pro-business” is now becoming a synonym for the embrace of anti-competitive corporatism.

WSJ - Spirit Airlines Bankruptcy.jpg


The WSJ editorial makes the case that “the Justice Department cut off a lifeline by blocking its merger with JetBlue Airways.” No, bankruptcy court still remained as a lifeline, and the court has now been engaged.

This line was particularly funny, coming from the Wall Street Journal’s editorial page:

Too bad the government won’t compensate the workers, flyers and creditors harmed by its blunder.

This is the same editorial page that spent decades championing the destruction of American manufacturing while celebrating the economic displacement of those whose jobs were offshored. We now know of at least one occasion when the Wall Street Journal does not rejoice at working class Americans losing their jobs.

[Justice Department] antitrust chief Jonathan Kanter never lets economic reality interfere with his anti-business crusades. DOJ challenged the merger as anti-competitive.
The Justice Department hailed the [JetBlue - Spirit] deal’s termination as “a victory for U.S. travelers who deserve lower prices and better choices.” Now passengers can look forward to fewer choices and higher prices as a result of Spirit’s bankruptcy.

More competitors is “anti-competitive.” More airlines to choose from is “fewer choices.” Advocating for more businesses in a market is “anti-business.” War is peace. Freedom is slavery.

Don’t forget, Spirit will continue to fly post-bankruptcy filing, and it will be competing with Jet Blue rather than being a part of JetBlue.

The Wall Street Journal might consider me “anti-business” since I want businesses to face competition - and possibly fail - rather than consolidate into a too-big-to-fail cartel that allocates customers, rather than competing for them. And maybe Spirit will still not survive at all, despite its visit to the bankruptcy court. Fine. Let another challenger rise in it place.



Outside of JetBlue and Spirit, there are four airlines that control 68% of the US airline market: American Airlines, United Airlines, Delta Airlines, and Southwest. There are many once-great airline names such as TWA, US Air, America West, Western Airlines, Continental Airlines, Northwest Orient, and others that have merged, consolidated, merged some more, and consolidated some more to get down to these four airlines. Rest assured, there will be merger talk among these remaining carriers too, with all the usual suspects stating that we need to let the airlines consolidate further – in the name of “competition.”

*****

Throckmorton’s First Law of Live Music: “If there’s an upright bass in the band, it’s probably going to be good.”

In the spirit of today’s topic, here is Merle Haggard’s classic “Silver Wings” as performed by the Kenny Vaughan Trio from a beer-soaked honky-tonk in Nashville.

I’ve been in enough honky-tonks and dancehalls in my life that I can actually smell this video as I watch it.


Have a great weekend.

[buck.throckmorton at protonmail dot com]

digg this
posted by Buck Throckmorton at 11:00 AM

| Access Comments




Recent Comments
rhennigantx: "God rest you merry, gentlemen Let nothing you dis ..."

[/b][/s][/u][/i]muldoon: "Love that. So precious. I'm sure her mom was shriv ..."

The Met Police : "He's a mostly peaceful driver. ..."

[/i][/b]andycanuck (hovnC)[/s][/u]: "Narendra Modi @narendramodi 3h Best wishes to Pri ..."

Kindltot: "[i]A little late for your Christmas cooking but I& ..."

Way,Way Downriver[/i][/b]: "[i]America is supposed to be a Christian nation, s ..."

Stephen Price Blair: "[i]The Old Testament is full of crooks.[/i] So ..."

[/i][/b]andycanuck (hovnC)[/s][/u]: "Not as bad as Magdeburg for casualties at least if ..."

Alberta Oil Peon: "There are numerous references to shepherds through ..."

Is that in the Bible?: "138 No, angels are like owls. Posted by: Kindltot ..."

Ciampino - Ispettore, Buon Natale a tutti quanti: "At least this does not appear to be terror related ..."

Giorgio A Tsoukalos, Weirdo Ancient Alien Guy: "Do angel wings make a flapping sound? If so, it co ..."

Recent Entries
Search


Polls! Polls! Polls!
Frequently Asked Questions
The (Almost) Complete Paul Anka Integrity Kick
Top Top Tens
Greatest Hitjobs

The Ace of Spades HQ Sex-for-Money Skankathon
A D&D Guide to the Democratic Candidates
Margaret Cho: Just Not Funny
More Margaret Cho Abuse
Margaret Cho: Still Not Funny
Iraqi Prisoner Claims He Was Raped... By Woman
Wonkette Announces "Morning Zoo" Format
John Kerry's "Plan" Causes Surrender of Moqtada al-Sadr's Militia
World Muslim Leaders Apologize for Nick Berg's Beheading
Michael Moore Goes on Lunchtime Manhattan Death-Spree
Milestone: Oliver Willis Posts 400th "Fake News Article" Referencing Britney Spears
Liberal Economists Rue a "New Decade of Greed"
Artificial Insouciance: Maureen Dowd's Word Processor Revolts Against Her Numbing Imbecility
Intelligence Officials Eye Blogs for Tips
They Done Found Us Out, Cletus: Intrepid Internet Detective Figures Out Our Master Plan
Shock: Josh Marshall Almost Mentions Sarin Discovery in Iraq
Leather-Clad Biker Freaks Terrorize Australian Town
When Clinton Was President, Torture Was Cool
What Wonkette Means When She Explains What Tina Brown Means
Wonkette's Stand-Up Act
Wankette HQ Gay-Rumors Du Jour
Here's What's Bugging Me: Goose and Slider
My Own Micah Wright Style Confession of Dishonesty
Outraged "Conservatives" React to the FMA
An On-Line Impression of Dennis Miller Having Sex with a Kodiak Bear
The Story the Rightwing Media Refuses to Report!
Our Lunch with David "Glengarry Glen Ross" Mamet
The House of Love: Paul Krugman
A Michael Moore Mystery (TM)
The Dowd-O-Matic!
Liberal Consistency and Other Myths
Kepler's Laws of Liberal Media Bias
John Kerry-- The Splunge! Candidate
"Divisive" Politics & "Attacks on Patriotism" (very long)
The Donkey ("The Raven" parody)
Powered by
Movable Type 2.64