DBEA55AED16C0C92252A6554BC1553B2 DBEA55AED16C0C92252A6554BC1553B2 Clicky

Was this really a “win”? After all, as an advisor to Frontier told us, “Either way, we win. We’re not going to chase JetBlue.” JetBlue beats off Frontier and wins Spirit.  What are the implications?

Airlines merge because of one key metric – economies of scale.  They must drive costs down as the lowest seat cost provider wins, every time.  Let’s start this with a look at costs.

Was this really a “win”? After all, as an advisor to Frontier told us, “Either way, we win. We’re not going to chase JetBlue.” JetBlue beats off Frontier and wins Spirit.  What are the implications?

Airlines merge because of one key metric – economies of scale.  They must drive costs down as the lowest seat cost provider wins, every time. 


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