The market void will be filled.
... and produce the same result that a merger would have accomplished sooner and more efficiently. Government action lead to disruption and waste. Who wudda thunk it?
In the early 2000s, Spirit’s “no-frills” model was unique. However, legacy carriers like Delta, United, and American effectively neutralized Spirit by introducing “Basic Economy” fares. Passengers could get Spirit-level prices but with the reliability, loyalty programs, and massive networks of a major airline. Spirit’s reputation for poor customer service when customers could get a similar price on a more reputable airline was going to kill them.
I think tye ULCC model is dead in the USA. This may push more people to buses
JetBlue may wind up with the planes and routes anyway, without having to take on any of Spirit’s former management.