Joke about Spirit Airlines and Market Definition in Merger Trial

Michael D. Cohen, CEO & Director of Research at MDC Financial Research, LLC, joins the podcast for the second time to share his thoughts on the JetBlue $JBLU / Spirit Airlines $SAVE merger trial now that closing arguments have been made. Known for their “Event-Driven Legal” investment-research, Michael Cohen and his team follow significant legal disputes and are closely watching the $JBLU / $SAVE case.

For more information about MDC Financial Research, please visit: https://mdcfinancial.com/

For more on the SAVE / JBLU trial, see podcast #204, Michael's first appearance: https://www.youtube.com/watch?v=BFN_iXHdF78

Chapters:

[0:00] Introduction + Episode sponsor: Alphasense

[1:41] Update since half-time report: overall thoughts on trial now that we have had closing arguments - $JBLU / $SAVE merger trial

[3:55] $JBLU / $SAVE merger trial closing arguments

[11:04] Feel for how Judge is likely to craft opinion on the case

[14:20] Potential additional remedies to get merger over the hurdle

[17:02] Market definition and timing of the deal (how does this affect consumers)

[23:41] Step 3: the burden of proof from the DOJ, showing there is harm to consumers

[24:32] Cont'd: timing of the deal (how does this affect consumers

[27:51] United Airlines testimony

[35:03] Commentary on Spirit's survivability if merger doesn't go through

[41:38] JetBlue's second expert witness

[43:43] Dr. Chipley's testimony

[45:54] Closing arguments cont'd: competition be preserved

[48:02] Closing arguments cont'd: balance of nationwide benefit vs. local harm

[52:28] Main divergence of opinion based on being in the courtroom

[56:52] Hot docs

[59:05] Odds of merger going through closes vs. failing vs. re-pricing

Today's episode is sponsored by: Alphasense

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