00:00:36.860Well, it is now an objective fact that Democrats kill your spirit.
00:00:42.900That, of course, means Spirit Airlines.
00:00:46.680As of this week, 17,000 employees have lost their jobs.
00:00:52.100Now, look, Spirit was always an ultra-budget airline.
00:00:56.740They always had challenges in their business model.
00:01:00.740Those challenges resulted in, for years, Spirit losing money, and their customer service has been consistently at the very bottom of airlines.
00:01:14.500All that being said, in 2024, Spirit had a plan to survive, and the plan was to merge with JetBlue.
00:01:22.640JetBlue is another budget airline, but unlike Spirit, JetBlue actually manages to provide pretty decent customer service.
00:01:32.020And both JetBlue and Spirit believed combined they would be a much more effective competitor and able to turn a profit.
00:01:40.780And in fact, Spirit Airlines believed the only way Spirit could survive is if it merged with JetBlue.
00:01:50.240Well, that would have happened, except then the Democrats came along to kill it.
00:01:55.680Elizabeth Warren led the charge, saying, we must stop JetBlue and Spirit from merging.
00:08:59.840every airline job they say carries three more on its back so in infrastructure because of that one
00:09:07.780job in the industry so you're now talking about on an honest number of about 40 plus thousand
00:09:14.180people that are either out of work or are basically losing major income all because
00:09:20.080Elizabeth Warren's insane crusade against you know this quote consolidation when she just1.00
00:09:27.560doesn't understand business or the math. Now you talk about the other fallout center and that is1.00
00:09:35.160Spirit abandoned 90 routes during the death spiral. Fares on those routes went up about 15%
00:09:41.740on average. Oakland to Newark, for example, went from 135 to 288. Fort Myers of San Juan went from
00:09:48.940$92 to $219. Kansas City to New York went up 66%. So now every consumer out there is probably going
00:09:57.840to be paying a lot more money because of her not understanding business. Well, and Elizabeth0.99
00:10:04.140Warren's spin, and we're seeing this repeated by a lot of the corporate media, she tweeted out this0.99
00:10:10.160week, quote, spiking fuel prices from Trump's war was the nail in the coffin for twice bankrupted
00:10:17.560Spirit Airline. And their whole spin on this is, well, it's entirely because of fuel prices and
00:10:23.080that's because of Trump. And look, understand their talking point is always everything bad
00:10:27.880is because of Trump. It is true that fuel prices have gone up during this military conflict with
00:10:33.460Iran, a military conflict that I believe is making America substantially safer.
00:10:39.360Fuel prices go up, they go down. That is part of running an airline. Every other airline is
00:10:44.340dealing with fuel prices going up. And ask yourself one question. Would Spirit be better
00:10:51.760or worse dealing with higher fuel prices if it had merged with JetBlue and had an additional
00:10:59.400$3.8 billion? Now, that is a question that answers itself. It is obvious. Now, look,
00:11:06.780is it possible that even if Spirit and JetBlue had merged, that they might ultimately not survive?
00:11:13.900Sure, that's possible, but the odds of the combined company surviving are much, much higher, and now because Elizabeth Warren and Joe Biden and Pete Buttigieg jumped in and killed it, spirit is gone, and I want you to listen to Pete Buttigieg cheering on their efforts to block this merger.
00:11:37.540Our department, the Department of Transportation, has generally not gotten involved in these merger cases, but that's changing today.
00:11:46.340It is so important to make sure that passengers have choices, that they have access to low fares, that they have access to competition.
00:11:55.260And yet we've seen less and less and less of that competition over the years.
00:11:59.640We are taking a step that, again, is unusual in terms of recent years, but we think is the right thing to do, supporting the DOJ's lawsuit and independently using our own authorities, which are a little bit different from the DOJ, starting our own investigation and taking other actions.
00:12:16.780This is, again, goes back to when you don't understand business and you don't understand what's happening in the marketplace.
00:12:25.360You go and you look. There was studies that were done talking about cheap carriers and markets drop fares by an average of 21 percent across the board.
00:12:35.320Southwest, by the way, did this in the 90s. They saved Americans about 68 billion over 20 years in fares.
00:12:42.500And Elizabeth Warren killed it and said, oh, I'm giving you more choice.
00:12:47.020Well, do we have more or less choice today?
00:12:48.900Are we closer or further away from a monopoly?
00:12:52.240Senator, you already answered those two questions.
00:12:55.040Well, Pete Buttigieg further tweeted in 2023, quote,
00:12:58.700Americans deserve robust competition and affordable airfares.
00:13:02.860U.S. Department of Transportation supports DOJ's antitrust lawsuit,
00:13:07.220and we plan to deny the JetBlue Spirit request for an exemption on their merger deal.
00:13:11.760We will continue with our own investigation while supporting DOJ's work.
00:17:01.820Those are both major and dominant providers, and they quickly abandoned that.
00:17:07.520American put out a public statement saying we're not interested in merging with United.
00:17:12.240That merger would unquestionably have run into real antitrust concerns because when you have dominant market players combining,
00:17:21.040That's what the antitrust laws are designed for.
00:17:24.520In this instance, you had two relatively small players in the most vulnerable position wanting to join forces so that they could be more effective competitors against the big guys.
00:17:37.880The antitrust law is actually designed to allow that and even encourage that, and yet the federal judge in Boston, Massachusetts, who entered the order blocking the merger, wrote the following, quote,
00:17:52.480While it is understandable that JetBlue seeks inorganic growth through acquisition of aircraft that would eliminate one of its primary competitors, the proposed acquisition in this court's attempt to predict the future in murky times does violence to the core principle of antitrust law to protect the United States' markets and its market participants from anti-competitive harm.
00:18:17.340Now, let me stop right there, and we're going to get a little bit wonky on two things.
00:18:21.800Number one, what the court said, which was repeating what the Biden DOJ had said to it, is flat out wrong as to the purpose of antitrust law.
00:18:32.200Antitrust law is not designed to protect market participants from anti-competitive harm.
00:18:44.480So when Democrats are in charge, they want to use government to protect one competitor from another.
00:18:54.320The purpose of the antitrust laws is to protect consumers, and the way you do that is by having robust competition.
00:19:03.660In this instance, JetBlue and Spirit combined would have been a much more effective competitor than the two splintered apart.
00:19:12.440And the antitrust analysis typically looks at one of the central questions is what percentage of the relevant market are the players that are seeking to merge?
00:19:24.740The way that DOJ managed to hoodwink the court into blocking the merger is they didn't define the market as commercial air travel.
00:19:35.820Like in any normal world, that's what you would think of.
00:19:38.380If I wanna fly from Houston to New York,
00:19:41.320my market is, who can I go buy a ticket from
00:24:13.940The TARP corporate bailouts were a huge mistake.
00:24:18.340And the government doesn't know a damn thing about running a failed budget airline that the Biden administration killed.
00:24:28.580Now, when I said that I'm the chairman of the Senate Commerce Committee, which has jurisdiction over aviation, when I came out against it, that got quite a bit of media attention.
00:24:38.800And it prompted a number of other members of Congress spoke out against it after I did so.
00:24:45.680So I will tell you, Ben, that was my public statement.
00:24:50.480I also went – so last week I had dinner with Howard Ludnick.
00:24:56.400He and I work together very, very closely.
00:24:58.040He's the secretary of commerce, and the commerce committee is the senate committee that has jurisdiction over the commerce department.
00:25:07.020So Howard and I had dinner last week, and a good chunk of the dinner was spent discussing the potential spirit bailout.
00:25:16.680And I will tell you, one-on-one with Howard, it was just the two of us having dinner, I leaned in really hard and said this is an absolutely horrible idea.
00:25:27.540Corporate bailouts are a bad, bad strategy.
00:25:31.100They were a bad strategy when we did TARP.
00:25:32.960They're a bad strategy when you have the government coming in and bailing out giant corporations.
00:25:38.860But they're particularly bad when the government doesn't know a damn thing about the business.
00:25:44.420And so if we'd ended up giving $500 million to Spirit and having the federal government own 90% of Spirit, number one, I believe we would have lost our money.
00:25:55.640In fact, I had said somewhat cynically, a better idea was simply to put $500 million in a pile on the floor, pour gasoline on it, and light it.
00:26:04.140Because then at least you'd get some warmth.
00:26:06.400You could like roast marshmallows by it.
00:26:07.860That would get something positive and beneficial from it.
00:26:11.600But fundamentally, who in their right mind thinks the federal government knows anything about how you run an airline?
00:26:46.900Look, there are some voices and some voices within the administration that are pretty excited about the federal government taking ownership shares in lots and lots of companies.
00:28:36.880And I think a budget airline made it obvious to most observers, look, there are limited circumstances.
00:28:46.100So for example, in national security areas where you're dealing with critical minerals and rare earth minerals, where it makes sense to have some government control because you need to be able to ensure that we can defend our nation from national security threats.
00:29:01.220But outside that very limited category, it is a really dangerous, slippery slope to start having the government be a shareholder and especially be the biggest shareholder in major companies.
00:29:15.380That's how you lose the competitiveness.
00:29:18.160That's how you lose the incredible success of the American for Enterprise system.