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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