Prof. Paul Vaaler Interviewed by CNBC About How Spirit Airlines’ Uncertain Future Could Mean Stress for Travelers
Professor Paul Vaaler was interviewed by CNBC about a judge’s order to block a Jet Blue Airlines purchase of Spirit Airlines could leave Spirit with an uncertain future and in turn negatively affect many of its customers due to Spirit’s offbeat destinations which sets it apart from other airlines. According to Professor Vaaler, the judge’s order “was a very wooden ruling of the Clayton Act,” which is the competition statute on which the judge based his ruling. Rather than stifle competition, a stronger Jet Blue could make prices more competitive, he said. “What I think the judge missed is that there is an offsetting beneficial effect of a merger; a large JetBlue could put more pressure on the legacy airlines.”