The Joe Biden Administration’s Federal Trade Commission (FTC) - led by hardcore Leftist Chair Lina Khan - is out of control.
We’ve previously, forlornly attempted to address the FTC’s lack of any self-restraint - and advise them on how to begin applying some.
The Biden FTC - apparently wasn’t interested in my counsel.
But I again feel like attempting to jump the Grand Canyon in a barrel. So let’s again try to provide the FTC assistance, shall we?
Currently before the FTC is a quintessential visual aide prototype of what the FTC should and should not be blocking.
What is actually happening - shouldn’t be blocked.
Why? Because of the makeup of the airline industry:
“Under anarcho-tyrant Lina Khan, the FTC has dramatically expanded its actions against the paymasters’ enemies - while doing nothing to the paymasters.
“Never mind that the paymasters are almost always far more deserving of FTC scrutiny….
“The Big Four Airlines (American, Delta, Southwest and Unites) can best afford to best bribe government.
“Estimated market share: 24.4%
“Estimated annual passengers: 198,714,575
“Market Cap: $9.02 Billion
“Estimated market share: 22.9%
“Estimated annual passengers: 186,389,862
“Market Cap: $21.42 Billion
“Estimated market share: 19.3%
“Estimated annual passengers: 157,677,218
“Market Cap: $18.88 Billion
“Estimated market share: 18.2%
“Estimated annual passengers: 148,067,000
“Market Cap: $18.88 Billion
“So the FTC ignores the Big Four’s market domination - which is a combined 84.8%.”
And instead - attempts to block Jet-Blue Spirit’s relatively minuscule $3.8 billion merger:
“Spirit and JetBlue are #s 6 and 7 - but the drop-off after the Big Four is titanic.
“Estimated market share: 2.7%
“Estimated annual passengers: 21,618,039
“Market Cap: $1.84 Billion
“Estimated market share: 2.5%
“Estimated annual passengers: 20,038,090
“Market Cap: $2.24 Billion
“The two airlines combined wouldn’t be 1/3 as big as just #4 United. But facts matter very little to anarcho-tyrants.”
This is clearly a merger that will not hurt consumers. In fact, it will most likely benefit them.
Scraping and cobbling together two (or more) also-rans? Might actually create a legitimate f ifth competitor to the Big Four that currently dominate the marketplace - and the consumers therein.
The Biden FTC should be championing this merger - not attempting to block it.
Now, if one of the Big Four was attempting to acquire Spirit? Or Jet Blue? Or both?
Or if one of the Big Four - was attempting to merge with another of the Big Four?
The Biden FTC should block the living daylight out of it.
Not all marketshare consolidation is bad. Some certainly is. But some is not.
A Big Four airline further expanding its marketshare dominance via merger and/or acquisition? Is bad marketshare consolidation.
Two tiny players attempting to aggregate their tiny marketshares - to attempt to better compete with the Big Four? Is good marketshare consolidation.
It would be really great if the Biden FTC learned the difference.
And then acted upon that knowledge.