Garland Says JetBlue-Spirit Deal Is Bad for Travelers

Garland Says JetBlue-Spirit Deal Is Bad for Travelers

Assessment

Interactive Video

Business, Social Studies

University

Hard

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JetBlue's proposed $3.8 billion acquisition of Spirit Airlines is under scrutiny for potentially violating Section 7 of the Clayton Act. The merger could reduce competition, limit choices, and increase ticket prices, especially affecting travelers who depend on ultra low-cost carriers. JetBlue and Spirit currently compete on numerous routes, holding significant market shares, which could be disrupted by the merger.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the main legal concern regarding JetBlue's acquisition of Spirit?

It will reduce flight delays.

It violates Section 7 of the Clayton Act.

It will improve customer service.

It will create new job opportunities.

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Who are most likely to be affected by the merger between JetBlue and Spirit?

Business travelers

Working and middle-class Americans

International tourists

Frequent flyers

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the significance of Spirit Airlines in the U.S. market?

It is the largest ultra low-cost carrier.

It offers the most international flights.

It has the most luxurious services.

It is the oldest airline in the U.S.

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

On which route do JetBlue and Spirit account for nearly 90% of the passengers?

Boston to Miami

Miami to Fort Lauderdale

New York to Los Angeles

Boston to San Juan

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a potential consequence of the merger on routes where JetBlue and Spirit are the only carriers?

Increased competition

Reduced ticket prices

Limited travel options

More flight options