Valuetainment - ＂Elizabeth Warren Is A DUMB Bunny＂ - Spirit Airlines SHUTS DOWN After Merger BLOCKED

00:00:00.000 Is it Spirit Airlines?

00:00:01.020 Am I saying it correctly?

00:00:01.940 Spirit Airlines, right?

00:00:03.980 Spirit Airlines.

00:00:04.500 I know you fly Spirit all the time.

00:00:06.460 That's why you were forgetting the name.

00:00:07.480 What's funny is I have.

00:00:08.600 I just haven't recently, but I have.

00:00:11.120 So Spirit Airlines story comes out.

00:00:13.200 And, Tom, I'm coming to you first with this one.

00:00:14.980 And, Vinny, please contact your folks because we need your analysis.

00:00:17.720 So Spirit Airlines comes out with this story that they are shutting down.

00:00:24.000 Wait a minute.

00:00:24.720 What?

00:00:25.540 Shutting down.

00:00:26.380 How many jobs?

00:00:27.540 15,000.

00:00:28.520 You're kidding me.

00:00:29.540 No. Democrats come out. Because of gas prices, Spirit is shutting down. This is all on Trump.

00:00:35.280 And then all of a sudden, time out. What did Elizabeth Warren and the DOJ prevent from happening?

00:00:39.980 So here's Duffy, Secretary Duffy, who's doing a great job, and here's him delivering an update on what happened with Spirit Airlines.

00:00:47.520 Go ahead, Rob.

00:00:48.260 ...and Spirit. And Joe Biden and Pete Buttigieg, along with the Biden DOJ, decided that they did not want that merger to take place.

00:00:58.500 And at the time, the Biden and Buttigieg DOJ bragged and said, as they canceled the option for this merger, that this was a victory for U.S. travelers who deserve lower prices and better choices.

00:01:13.640 Now, many at the time said this was a disaster.

00:01:16.900 This merger should have been allowed.

00:01:19.540 And this today would indicate this is not better for travelers.

00:01:23.440 This is not better for pricing.

00:01:24.540 This is not better for competition.

00:01:26.640 Actually, it's worse.

00:01:28.500 We had an airline go down because the markets were trying to allow two airlines to merge,

00:01:33.840 make them stronger, and offer more competition for the American consumer.

00:01:39.000 Also, Elizabeth Warren at the time cheered the blocking of the merger,

00:01:42.320 saying that this was a Biden win for flyers.

00:01:49.140 So, again, I think it's important that we always look with a keen eye when airlines want to merge.

00:01:55.800 We care about pricing for consumers.

00:01:57.800 You can pause it right here on what happened.

00:02:00.800 Duffy said, hey, if you work for Spirit, don't go to work.

00:02:03.740 If you have a flight, don't go.

00:02:05.400 It's not going to happen.

00:02:06.140 If you're going to do this, don't do that.

00:02:07.480 They're going through all this stuff.

00:02:09.240 And then Senator Warren is facing backlash over JetBlue merger block after Spirit shut down.

00:02:16.500 Rob, do you have that one when they were going through the whole thing?

00:02:18.660 This is March 7, 2023.

00:02:20.360 Good work.

00:02:20.860 Is this just Buttigieg or is it both of them?

00:02:23.580 Both.

00:02:23.840 Okay, go for it.

00:02:24.560 that passengers have choices, that they have access to low fares, that they have access to

00:02:30.320 competition. And socialist Elizabeth Warren said at the time, preventing a merger between JetBlue

00:02:36.040 and Spirit, which would have kept us from being here today, said, I've warned for months a JetBlue

00:02:40.400 Spirit merger would have led to fewer flights, higher fares. The irony is that that really kind

00:02:45.060 of socialist viewpoint got us one less airline and fewer jobs. Is that it? Yep. Okay. Tom,

00:02:52.200 What do we know about this? Who screwed up? Whose fault is it?

00:02:54.960 So if you've got two huge giants that want to put together, that's where the Federal Trade Commission says, hey, anti-monopoly behavior, the monopolistic behavior.

00:03:05.720 They don't want that to happen. But you've got JetBlue and Spirit, two smaller airlines, JetBlue, who classically, you know, they are who they are.

00:03:15.820 We all knew who they are, kind of a southwest mid-tier.

00:03:20.160 And then you got Spirit that was providing, you know, ultra low cost on certain routes.

00:03:25.480 As a matter of fact, Spirit is very big here in Fort Lauderdale.

00:03:28.180 Yeah, their headquarters is here in Dania.

00:03:30.200 That's exactly right.

00:03:31.120 I mean, they're huge.

00:03:33.220 And so what happened was they said, oh, it'll lead to higher fares and fewer flights.

00:03:39.700 They believed that JetBlue was merely going to shut down Spirit.

00:03:44.580 Well, they apparently don't understand the economics of airlines.

00:03:49.840 That's not what's going to happen.

00:03:52.240 Market share of hubs is what matters in airlines, number one.

00:03:56.140 And number two, you do have levels.

00:03:59.940 And what they did last year, Pat, it came true.

00:04:03.400 Elizabeth Warren says, we're going to block this because it's going to have –

00:04:07.580 consumers have higher fares and fewer flights. 1.00

00:04:11.000 You dumb bunny. 1.00

00:04:12.060 That's exactly what you did. 1.00

00:04:13.380 Oh, no.

00:04:14.080 Yo, yo, yo, don't say that. 1.00

00:04:18.940 Mission accomplished, Pocahontas. 0.99

00:04:22.480 Oh! 1.00

00:04:25.220 Snap!

00:04:26.720 Now you look back over it.

00:04:28.060 You're bad, Bernie.

00:04:28.980 People don't have jobs.

00:04:31.700 You got Tom riled up, everybody.

00:04:33.580 People don't have jobs.

00:04:34.840 Now, what happened?

00:04:36.280 Spirit had issues the way it was managed and forward.

00:04:39.720 They ended up in a place.

00:04:40.860 Let him know, Tom.

00:04:41.120 I think they had $9 billion of debt.

00:04:44.580 I think that was the—

00:04:45.900 $9 billion?

00:04:47.780 No, JetBlue had $9 billion of debt, and so they were like, how is JetBlue going to do this?

00:04:52.740 But if this had been like American and United coming together to make a supercarrier, then you could say, wow, well, there go prices.

00:04:59.940 And you'd probably be right.

00:05:01.220 But you've got these—a regional and a discount airline, and the government got it wrong.

00:05:06.360 They simply got it wrong because look at all the angle they were.

00:05:11.060 Capitalism, bad.

00:05:12.060 Merger for bigger, bad.

00:05:13.660 People, bad.

00:05:14.620 And you know what else?

00:05:15.340 I'm going to go out here and I'm going to say maybe.

00:05:18.300 Maybe if this has been a pharmaceutical company or a defense contractor, which keep merging, how many defense contractors we have left?

00:05:26.720 Five super majors, Pat.

00:05:27.960 Remember the chart that we talked about on this podcast two years ago about all the defense contractors had merged together and that created issues for the American taxpayer paying for things?

00:05:38.840 This wouldn't have done that.

00:05:40.500 This was – you're trying to keep – if I had been there, I would have said, look, we need to let Spirit and JetBlue get together, and I'll tell you why.

00:05:49.020 Because we need to keep a mid-tier and a discount airline to be large enough to compete with Americans, to compete with the others.

00:05:58.100 That's what I would have done.

00:05:59.220 And they blew it.

00:06:00.300 They missed the call.

00:06:01.740 Do you know what Elizabeth Warren, Pete Buttigieg, and the Democrats are begging and praying for and making phone calls behind closed doors?

00:06:09.920 What?

00:06:10.160 To let something happen?

00:06:12.560 To have the second airline go bankrupt.

00:06:15.260 Because if the second airline goes bankrupt, they're right in imaging and PR.

00:06:20.980 If it's only sprint, spirit, Republicans are right.

00:06:25.820 But if a second goes through, Trump's going to have to answer for that.

00:06:29.960 And Duffy.

00:06:31.300 And it's going to come back to oil prices.

00:06:32.920 It's the second one, Tom.

00:06:34.560 Yep.

00:06:35.200 So you better believe behind closed doors, Democrats are right now sitting on it saying,

00:06:39.000 Who's another one that could go bankrupt?

00:06:40.700 Hey, let's make their life a living. 0.98

00:06:42.140 Make them go bankrupt. 0.64

00:06:42.960 Who's another one that can go bankrupt?

00:06:44.260 JetBlue with $9 billion in debt.

00:06:45.660 There are some people that handicap it, that if you lined all the airlines up,

00:06:49.860 that JetBlue is the next one that would be possible.

00:06:52.080 But you look at their financials, they appear to be a long way away from the cliff.

00:06:57.660 Yeah.

00:06:58.100 Well, I'm just saying, they're celebrating that.

00:07:00.700 Because play that clip, Rob, if you can.

00:07:02.780 Yeah, they're celebrating that.

00:07:04.260 Here's Merrick Garland on March of 2023 talking about Spirit Airlines.

00:07:08.700 Go ahead, Rob.

00:07:11.320 Today, the Department of Justice filed a civil antitrust lawsuit in the U.S. District Court for the District of Massachusetts to stop the merger of JetBlue and Spirit Airlines.

00:07:21.000 We are joined in that lawsuit by the Commonwealth of Massachusetts, the state of New York, and the District of Columbia.

00:07:27.600 I'm here with Associate Attorney General Vanita Gupta and Principal Deputy Assistant Attorney General Doha Meckie.

00:07:34.260 Our complaint alleges that JetBlue's proposed $3.8 billion acquisition of Spirit

00:07:40.480 violates Section 7 of the Clayton Act.

00:07:43.940 We allege that if allowed to proceed, this merger will limit choices

00:07:47.920 and drive up ticket prices for passengers across the country.

00:07:52.540 And we further allege that the impact of this merger will be particularly harmful

00:07:56.620 for travelers who rely on what are known as ultra-low-cost carriers in order to fly.

00:08:03.700 Those include working and middle-class Americans who travel for personal as opposed to business reasons and who must pay their own way.

00:08:11.940 Keep going.

00:08:12.280 By acquiring spirit, JetBlue will eliminate the largest ultra-low-cost carrier in the United States.

00:08:19.200 Oh, you just caused it, by the way.

00:08:20.400 Pause it right there.

00:08:21.100 So, meaning, whatever they try to prevent, this is over and over and over again, they do their policies and it miserably fails and capitalism wins, but they confuse.

00:08:32.280 And we'll go, oh, my God, this is gas prices.

00:08:34.180 They're going to do that.

00:08:34.800 Adam, what are your thoughts on this before we move on?

00:08:36.540 Let them fail.

00:08:38.280 You remember that when Chamath said that about the airlines in 2020

00:08:42.000 when they did the bailout because they were doing their stock buybacks?

00:08:44.840 He said, let them fail.

00:08:46.200 Because you said this, you taught me this,

00:08:47.800 what are the four elements of capitalism?

00:08:49.240 Freedom to buy, freedom to sell, freedom to try, freedom to fail.

00:08:52.680 Freedom to fail.

00:08:53.720 So here's what I know about Spirit Airlines.

00:08:55.840 I know it's been quite some time since you've flown Spirit.

00:08:58.060 I fly Spirit if I have to.

00:08:59.520 uh they're basically the dollar general of airlines and when when you have a business

00:09:05.740 model that you're the cheapest prices oh you know you're the like how do you raise prices

00:09:11.860 how do you increase your margins you know if spirit airlines had a mantra it'd be like

00:09:16.080 low prices bad experiences we'll get you there maybe yeah so i listen i remember the last time

00:09:23.320 that i flew spirit i flew you remember you know my friend keith you know i have some rich friends

00:09:28.920 Vinny it's better to have really really rich friends flew to Aspen with him on his private

00:09:33.940 jet from Miami he goes come on come with me to to Aspen I go great fly with him he goes how you

00:09:39.040 getting back I go do I do I get to take the jet back goes no I go spirit it is homie I flew back

00:09:45.220 spirit now let me tell you I'd rather fly private don't get me wrong I know how much you guys like

00:09:48.540 flying private to Aspen I go that's a great experience for you but spirit is low cost bad

00:09:54.480 experience and there's always issues so i don't know what happened here with spirit i'm not delving

00:09:59.760 the devil's in the details tom's got those details but at some point if your business model is built

00:10:04.520 on razor thin margins there's very little room for error and when gas prices go up and travel goes

00:10:11.780 down you can't really raise the prices if you have the worst reputation and i'll ask you this pat you

00:10:17.360 did a commercial for the flbs you said we went to tuscany italy and you said we had the choice help

00:10:23.020 me out here pat to make it cheap to make it quick to make it fast we chose none of those we did it

00:10:29.240 the right way yep spirit airlines had to pick a path you're the cheapest you're the best customer

00:10:34.200 service you're either going to get you there on time they would do neither they were the cheapest

00:10:38.280 they would never get you there on time and they had a horrible customer service let them fail

00:10:43.780 let my people go and i had the work like it was like when my father god rest his soul passed away

00:10:48.940 I came to the airport sad.

00:10:50.820 I have a big vendetta with them.

00:10:52.560 They charged me $50 because I had emotional baggage.

00:10:55.900 But my dad.

00:10:58.420 Pat's face went.

00:10:59.840 They're like, you look like you're sad.

00:11:01.520 That's $50.

00:11:02.600 You're going to put that on the air.

00:11:03.560 What's funny.

00:11:04.120 Pat's face went.

00:11:04.780 Nobody caught that joke.

00:11:05.920 They charge you $50.

00:11:07.860 By the way, they will nickel and dime you for everything.

00:11:11.540 Words talk, numbers scream.

00:11:13.300 And we'll get off this story, Pat.

00:11:14.640 But Spirit Airlines has 1.4% market share.

00:11:19.720 Oh, my gosh.

00:11:20.780 Giant in the closet, right?

00:11:23.400 JetBlue has 3.4%.

00:11:25.620 That's 4.8%.

00:11:27.160 So if they had merged, they would have had 4.8% market share.

00:11:30.600 Alaska is next at 5.8%.

00:11:32.780 And then United at 17%.

00:11:34.480 So this would have created a low-cost plus regional player that's still smaller than Alaska

00:11:41.140 and four times smaller than United.

00:11:43.540 and six times smaller than market leader, American and Delta,

00:11:47.740 who both have about 20. 0.97

00:11:48.880 Shut up, Mike. 0.92

00:11:49.340 But more importantly, what does this have to do with the giant in the closet? 0.99

00:11:52.560 Like, what were they doing?

00:11:53.580 No, no, I'm making a joke.

00:11:55.080 I mean, it's like they were not some giant that was –

00:11:58.960 I was confused.

00:12:01.020 So, by the way, what you're saying is right.

00:12:02.800 Look, I think we have to give the highlight reel, Rob.

00:12:05.420 We can't do this.

00:12:06.020 We have to give respect to spirit because if you're somebody that likes

00:12:10.340 entertainment, you have to

00:12:12.200 give it up to what happens

00:12:14.460 at Spirit Airlines. Watch this. Go ahead.

00:12:15.880 Let me hear the audio.

00:12:17.960 This is Spirit Airlines.

00:12:19.560 Give me the kick.

00:12:23.540 What airline

00:12:24.220 does it better?

00:12:28.800 There's another one with employees.

00:12:30.280 I haven't seen this one, but I want to see

00:12:32.340 the employees fighting. Go up one? 0.73

00:12:34.080 It was right above you.

00:12:35.700 Oh, yeah.

00:12:36.920 Go back a little bit. 0.99

00:12:38.680 these employees i mean i'm dropping your ass oh that's spirited bro 0.99

00:12:47.000 yes you are she got an eight head look at that eight head right there 1.00

00:12:54.760 oh my god right oh you didn't tell me she was going to say that wait a minute

00:12:59.960 first tom says giant closet and then now she says does she actually swing at her

00:13:04.120 Every three to four years, we find ways to improve value attainment,

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00:14:21.000 Till today, it haunts me every time I see those pink socks.

00:14:23.820 You know, and the way I'm sitting on that couch, Rob,

00:14:26.080 if you want to show the first clip we ever did on Valuetainment,

00:14:28.880 it really inspires me to know how far along we've come

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00:14:37.360 Yeah, if you go there, go to videos and go to the oldest right there

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00:14:42.440 No, go to the second one, Rob.

00:14:44.360 Look at those things.

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00:14:46.720 Look at the way I'm sitting.

00:14:47.460 Go to 40 seconds.

00:14:49.560 Look at the way I'm sitting.

00:14:51.040 Just right there is fine, Rob.

00:14:52.780 Okay?

00:14:53.000 I mean, it's like horrible, right?

00:14:56.440 What is that?

00:14:56.940 That's the first video ever.

00:14:58.160 That's Woodland Hills.

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00:15:39.900 Yep.

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Valuetainment - May 05, 2026

＂Elizabeth Warren Is A DUMB Bunny＂ - Spirit Airlines SHUTS DOWN After Merger BLOCKED

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