I hope this isn’t too many questions in one. Here’s what I know: I know Frontier was going to buy Spirit. JetBlue then had a better offer and a judge recently blocked them from buying Spirit.
1) I am confused about why this was blocked (I am uneducated about anti-trust stuff), and what it means for the airline.
2) It sounds like their stock is down and they are in debt. Why are they in debt? If their model isn’t profitable, why aren’t all low cost carriers in this same boat, like Allegiant, Frontier, Breeze etc.?
3) I know other airlines in the past have declared bankruptcy and are still around. What does it mean when an airline declares bankruptcy and is it really a bad thing?
Please explain like I’m 5. Maybe use a lemonade stand analogy or something.
In: Economics
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