Spirit Airlines Grounded by Bankruptcy & New FCC Threatens Big Tech
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Good morning brew daily show. I'm your friend and i'm to me hello today how spirit airlines went from the industry disruption to chapter .

eleven bankrupcy and who is Brandon car trumps new pic to leave the fc. It's tuesday, november ninety th. Let's ride.

Good morning. IT is great to be back here in the studio with youtube and with you are wonderful listeners. Anyone tuning in from udp ovc? If so, I do not envy your next two months.

In this city, three hundred and thirty miles north of the arctic circle, the sun set yesterday at one twenty seven local time, and IT won't rise again until january twenty second. For sixty four days, residents there will be living in what's known as polar night. Makes me feel a little bit Better about the sun setting at four thirty here in the evening hours.

But here's something to remember over the course. The year utiroa well actually experiences the exact same amount of daylight as any other place on earth. So if we fast ward to may eleven, twenty twenty five, the sun will rise in ugiz c and IT won't set until August nineteen.

So there is a life lesson in there somewhere. Even though you might go through periods of extended darkness or extended sunshine, IT all evens out in the end. Now, a word from our sponsor, yahoo finance, do you have a stock market group chat?

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Well, pour out a water the flight attended and charge you for because spare airlines filed for chapter eleven bankrupt y protection yesterday after years of hard winds finally caught up to the budget airline, so many things had to go wrong to lead to this moment, a merger with jet leow that fizzled in january, engine problems that grounded part of its fleet, an inability to Operate profitability in a post pandemic inflationary environment. That time when they said my Carry on bag was too big, these all contributed to two and half billion dollars in losses of the past five years and a failure to turn a profit since twenty nine.

The airline did come out and assure customers that IT expects to continue to Operate Normally now and in the future. So if you forgot to book a thanksgiving flight home, you can still look their way. IT sock is a different story, though. After following over ninety so far this year, spirit is going to delist from the york stock exchange as IT sort through total dead listed at nine billion dollars to you already laid out some of the reasons why spare struggled to compete in the airline industry. But what do you think ultimately think IT .

IT was my Carry on back? Fiesco, obviously, I was clearly small enough to fit in the seat in front of me. Now I was a varied things in stingy enough, though demand wasn't really the issue.

Spirit flu, two percent more passengers in the first half of this year that in the first six months of twenty twenty three, but the airline took almost twenty percent less revenue per mile IT was just hard to compete with the the industry rate. Large IT was kind of caught in what we call the messy middle. A lot of U S.

Airlines offers that maximum cheap ness. Take IT um tear where it's very bare bones. You know no boarding, uh uh no boarding privileges and just very basic economy seats. But I also couldn't compete up the higher end of the spectrum to with more luxury characters like delta that people were clearly gravitating towards post pandemic. So IT just was the worst of both worlds, even though more people were flying IT, IT just couldn't reliably charge those passengers enough money to Operate profitable.

yeah. I mean, there was a Price war in the airline industry of the past few years. There was too much capacity.

IT doesn't serve international markets that had a higher margin for the Carriers like delta in united. And I was, I think, of IT as the snapshot of the airline industry. First of all, IT yellow, but also IT introduced a lot of innovative features.

Remember, if you go back to two thousand and six, when I introduce this ultra discount budget model, a kind of took the airline in the street by storm was super successful. The concept of just paying sixty dollars for a one way fly, and I just maybe Carrying a backpack, was quite revolutionary at the time. The problem is the facebook of the uh of the airline world decided to just copy IT.

And at the same time they also offer a lot of other things that make the money. So in the context of this Price war spirit loss, because I just couldn't charge enough and I did try to make moves to compete with the big guys earlier this year, decided to roll out four different bundles of affairs that you could do. IT came with something that somewhat resembles es. First class, where you can board more quickly, you can have more refreshments, that comes with a few more perks. But I did seem that that was a little too little too .

late IT really was that spirit was almost too powerful of force in the airline industry that ended up thinking IT because spirit pressured others to keep their fares lower, pressured others to innovate, offer those lower fares.

And that the the fact that they could exert that pressure was part of for the reason why the justice department over through a successful lawsuit that prevented the jealous spirit merger on the grounds that losing spirit with harmless consumer, losing spirits with low fares with harmless consumer. But then everyone was saying, look down the road little bit. Spirit is struggling.

If we don't let this murder happen, you probably might lose spirit to bankrupcy anyway. So IT is one of those things where the justice department was right. That spirit is this downtown ercs downward d pressure on Prices because of the fair that offers, but the fact that they blocked the merger made IT. So that spirit is has like this murky path or going into the future that again.

I don't speak, it's not going anywhere. They're going to refinance their dead. They are going to emerge from bankrupcy IT looks like in the q one of twenty twenty five.

And pretty much every airline that exists today has gone bankrupt. The big guys went bankrupt after nine eleven. Airlines have filed for chapter eleven more than one hundred and eighty times in recent decades though.

So this is just something you do as an airline. You go through bank s bankrupcy and then hopefully come out a healthier company on the back. And but this hasn't happened for a long time.

This hasn't happened in thirteen years since american airlines go bankrupt. So we haven't seen this from a major U. S. Airline in a while because the industry has been doing pretty well.

Seemed like nine eleven was a big shock to the system that LED to three bankrupcy and was the same that has LED to at least spirits. bankrupcy. President electron p has selected his chair of the fcc, and it's great news for elan musk and potentially really bad news for mark cycler g and tim cook.

Meet Brendan carr, who come january, will head up the agency test with regulating TV internet services and radio in the united states. Normally, it's been a sleepy corner of the dc bureaucracy, but the fcc could adopt a much a bigger role if car gets his way. And his main objective, should he get that power, is to punish tech companies.

And TV outlets, he says, are two liberal in their viewpoints. On the big tech front, he accused of meta, alphabet, apple and microsoft of running a quote, censorship car, tel, that aims to silence conservative voices. One of his objectives is to repeal section to thirty, the federal rules that shield internet platform from being liable for users post.

And as for traditional TV car lambasted nbc when commonly hair appeared on sl right before the election, saying that I tried to evade an fcc rule that forces networks to give equal air time to candidates. So there are a lot of business leaders out there who are pretty nervous about car taking charge of the F. C. C. But elan musk is not one of.

yeah, his death car is definitely in elon guy car wrote on x that we must dismantle the center kartell and elan immediately replied with one word of affirmation. He just said, based to IT, so there are clearly see free speech and sea censorship the same way. You're right though, elon does stand to benefit starling and starlings.

Rivals need fcc licences and ordered to being their internet down from satellites. Those frequencies are pretty a often ly hotly contested. So whatever fcc decides can make, make or break a company, A U an has also kind of criticized by and forty two and a half billion dollar broadband expansion platform where they are using fiber optic cables to bring broadband internet, two rural areas of america.

He said, I could have done a Better with startling car, seems sees at the same way. So a big winner here is elon must for sure. Just in general though, the S. C, C is typically a pretty low key uh, you know, regulatory body and emphasizes broadband internet, a deployment which is not necessarily this very partisan thing. But car is much more interested in big tech censorship and going after what he calls .

the censorship Carter, right? That'll be the big question around his leadership is whether he can expand the jurisdiction of the fcc to do what he wants to do.

And he wrote the fcc chapter in project twenty twenty five, which is this manifesto produced by a conservative think tank out, is there wishlist for a second trump presents? Y trump has distance himself from from that document, but in IT and and you can read that he definitely lays out a sweeping agenda of going after big tech companies that may resemble more of something that would be under the preview of the deo j or the ftc, which we've talked about endlessly sly that they've gone and over a they've gone after big tech during the big administration. For the big question here for car is whether he will get the funding and get the legal Green light to pursue some the stuff that he wants.

And if he does that, IT is a certain big danger for big tech, especially that section to thirty. They say that those rules lay the foundation for the modern internet because tech companies aren't liable for what the content on their platforms if that goes away. I mean, they could spend literally every day in the courts for years going at .

one name that we haven't mentioned when talking about. Big tech is tiktok car is not a fan of tiktok. He supports the current efforts to ban tiktok in the U.

S. Sites, national security concerns, which could lead to some tensions because trump is kind of flip lopped on that issue and said, I think tiktok should stay now. So that is a potential battle ground that might cause some friction between trump and and car.

But you are right, right, large. He is someone that big tech is probably a little bit nervous is coming down the the pipeline even though the fcc doesn't probably have the jurisdiction or you know the power view to really regulated as car might hope to. Now let's talk about a recent view research survey that shows just how much the newsstand scape has changed 当 of the days where people's main source of news were talking heads on T。

V screen. Instead, pew found that one in five americans, nearly forty percent of adults under thirty, regularly get their news from influencers on social media. The survey talked to ten thousand adults and studied five hundred news influencers with at least one hundred thousand followers to piece together people's news diets.

And one big take away is that there is a huge gender gap of the influencers in the survey. A clear majority are men coming in at sixty three percent. In terms of platforms, x is the most popular, with eighty five percent having a presence there lapping instagram, the second most popular, which is used by fifty percent.

If you look at legacy media networks, falling ratings. And at the recent presidential election, where the georgian experiences in color dating both played major roles, a paratime shift is clearly underway in the news game. And this research survey only serves to reinforce .

that IT really does. And a, we just talked about a survey that showed that the trust in legacy media had fAllen two in all time law. Fifty nine percent of U.

S. Adults surveyed by pin september said they had a lot or some trust in information from national news organizations that is down so much from seventy six percent in twenty sixteen. People are turning toward individual creators, to the view as more authentic and more like them, and more able to bring them the news that they want.

Maybe IT is a convenience factor because there are always on your phone, in your screwing on instagram anyway, but we are do seem to be under A C change, a ap. The associated press, which is one of the few org news organizations that covers the entire globe, just announced that they're going to cut staff by eight percent of water poses, losing up to one hundred million dollars a year. They're losing subscribers as they last ten percent of their subscriber base after they did not endorse a presidential candidate. So they are clearly are changing tides here where news creators are on the rise and legacy y news stations are are on the downhill.

You can kind of trace the rise of influencers back over A A decade or so almost ten years ago. Remember, brock obama made ways when he granted an interview to some major youtube creators at the time, I was the big deal that he was kind of giving a platform to this smaller uh, youtube creators. But then fast forward this year and the democratic national convention credential two hundred social media creators for their four day event.

The R N, C, also hosts more than seventy influencers. It's clearly part of the political playbook, at least at this point, to bring these influencers in because it's clearly where a lot of people under the age of thirty are getting their news from. So just a totally different ball game at this point.

The research uh from pew also delve into how different platform ms attract different audiences. There's a much narrower gender divide on tiktok compared to all the other platforms. On most other platforms, news influencers who are male out uh number females two to one, but on tick tocked ts fifty one male, forty six percent fee male. So IT is interesting to see how different gender breakdowns stretch across platforms.

So what might we see going ahead? You might see like struggling news start to partner with creators and individuals who bring the news who may not even have experiences. I mean, eighty four percent of news creators on tiktok do not have to any formal journalism experience.

But clearly people don't care about that. They want someone who's authentic and who was talking to them like IT is. Even if they are overtly biased, that does not seem to matter to people as long as they are up front about IT.

So I think we'll start to see new organ ization tap into influence their network yardy seeing this with yahoo news artis ing this with some mother uh media outlet MBC a bunch of influencers to lead their and their olympics coverage in paris this summer. So I think you might start to see some interesting partnerships between a legacy media outlets that are reading this exact servicing a we got to we got hit r wagon to these influencer. So I think you'll see some interesting partnerships coming .

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What if you got the pay in the prestige of being a doctor, but without the insane working hours? Well, welcome to dermatology and welcome to tobes trans for iron pack and emerging trend for you all to impress your friends with german ology is the hottest st new job in medicine, with residency applications for german ology slots up fifty percent over the past few years.

According to the wall street journal, america's obsession with skin care is pushing many tours of field. Also, some pull factors include a more Normal forty hour work week rather than the gut ranching hours required in other fields of medicine, and the pay is pretty nice as well. Dermatologists earn a medium of five hundred and forty one thousand dollars a year, according to a recent survey from the medical group management association, throwing the chance to build and monetized the following on social media.

And it's not hard to see why the field is attracting more and more people. I feel like this is a confluence of a lot of trends. Young people looking for work life baLance, social media super charging some careers and and the people care more about their skin and well being. A triple shot of toby trends.

And when botox was approved for front lines by the fda in two thousand and two, that kind of kick started the slow burn of, uh, dermatology becoming more in the public consciousness. Yeah I think this is a you're right. I think this is the convenience of a lot of chance, maybe people looking at themselves on zoom all day during the pandemic, seeing what they look like sing.

But I probably should get into skin care that's driving demand for this professional. Also, half of all doctors say they are burned out. And maybe in previous generations, you just kind of as a doctor, and that was what you were supposed to do.

And I was this higher calling and unit. Yes, you ve got a lot of pay, but also, yes, you are on call. Your beeper was going off at all hours of the night, but at this point you're just like, know, I I rather just have my nights and weekends. But IT does appear like just work like baLance is waning out over any other concern, especially in the medicine profession.

IT certainly wasn't always that dermatology a prestige feel that work of my was not glamorous at all. They tended to treat your venereal diseases, cialis that manifested on the skin um but I started attracting a lot more practitioners when you mentioned that two thousand two and fa approved boo tox for use um because now you are introducing medical treatments but also caused medical treatments so that opens up to a new thing and I mentioned the president, you can't talk about german ology without talking about social media.

Tons of these german ologies have big followings on social media, because skin care is just to get ready with me phenomenon on tiktok. Skin care is so deeply and grain in social media culture right now that you have the ability to build this following outside of you, your actual practice, which is very appealing to a lot of people. So I do just want to give dermatologists their shadows though.

There is the first line of defense for a lot of people. A lot of things manifest on your skin. Skin cancer is the most common form of cancer in united states. You can kind of have IT all, you can have the worklife, you can have the good pay, you can have the social media following, and you can have that higher calling where you are actually helping people.

right? So if you are listening to this, and hey, maybe I want to be a different tolosa and get paid five hundred and forty one thousand a year, well, get in line with all of this. With all of these perks comes a lot of competition.

Like one examples that at U. C. Health, there were six hundred applications for four residency thought.

So you know it's onna be tough to again to some of these higher level residency programs. Let's bring to the finish with some final headlines. I regret to inform you, there's been another e coi.

outbreak. One person has died and at least thirty nine people have become sick across eighteen states from an equal outbreak to organic and baby carrots sold in U. S. Grocery stores, the cdc said. The carrots, which were supplied by grimly farms in california, were sold under popular brand names including trader joes targets, good gather and walmart. Markets side, there are no longer on store shelves, but the cdc says you should throw away or return any bad carrots in your house that fit the description on its website.

I mean, what this really shows is how many of these so called separate brands rely on the exact same suppliers of all the cog, publix, target, chaos, walmart, wegman's, whole foods. They all lead back to gram way farms just with different packaging.

So we've seen this with some other of the equal outbreaks where waffles are supplied by one manufacturer, made IT into a bunch of different waffle brands are what this is really showing is just how many of these brands are connected by single suppliers. In some trump cabinet news, the president electrodes fox news contributor shaan duffy, to lead the department of transportation for those keeping track at home. This is now the second time in two weeks that trump has chosen a fox personality to serve in his cabinet after he picked pete hegseth to leave the department of defense. But now fox news isn't even duffy's only TV experience. He also appeared on mtv the real world back in nineteen nineteen .

ninety should also mention that he spent eight years in the house a from wisconsin resenting, but as his most recent sense have been on fox news, he's also accomplished a lumber jack. And this one, several world championships in speed climbing events. Also, people might remember him from the wheel role, but he steps into, he's gonna step into this big role that under reaction secretary p boot judge has been on a lot of news headlines.

A because of spending that infrastructure money, bill and boot judge has been very vote, go about protecting consumers, especially in the airline industry, is taken on, uh, IT airlines when IT comes to Price gouging for various ticker Prices in all these hidden fees. So we'll see if he continues. But uh, what mayor pete has done in this role or he rules some of that back, but we'll it's become a very high profile role on in the last four years at least.

Here's a pretty shocking fighting from a recent paper. Amateur readers can't dependently differentiate between classes. Works of poetry from literary icon's like Williams, shakespeare and ChatGPT created poems that are modeled after them. According to a study published in scientific reports. Here's the more intriguing part. Though those readers preferred the AI generated poems on average than the human write ones, and more often thought the AI plumbs were by humans, the authors think that the non expert readers like the AI poems Better because they were more straight forward and easier to understand, then the brain busting styling of poets like shakespeare and Emily dickinson.

Okay, so I am going to test you all and test you all listening at home. I have two high cues in front of me, one I wrote and one was written by ChatGPT. So you're ready.

Here's high school. Number one, toby lights the mike niels, banter sharp as sunrise, morning brew, pure joy. That's high.

Number one. And then here's high q number two, I am a robot. A robot wrote this poem, thoughtless lines of code. So which one high? Number one or number two, do you think was writing a robot?

I think you're doing river psychology on us, so i'm going to go with you. Wrote the robot. I, Q.

Number one was in fact written by chat. G.

P. And and no disrespect to your name to me, but this study compared shakespear elegance verg, Emily dicto, what women poems, two AI generated ones so and people could not tell the difference at all and they liked the AI poems Better and I think that's a very common uh come in feeling that when we read these poems and we know they are classics and their so important and extensively, very good, but sometimes they're just a really hard understand and ChatGPT just dums them down a little bit and maybe evokes a little more emotion.

You want to know it's funny is that I actually prompted chat P T to write a palm like toby from morning and that's what I came up with so I tried to, you know, full you, but you're too smart. Finally, my fellow floridy, and cover your ears because triana has changed its orange juice bottle again and thins the O J maker recently died its iconic clear plastic craft, H X bottles to introduce a more traditional look, that is slider and a lot more boring. Now it's one thing to ditch the recognizable silla ET, but travino also went in shrink flag the bottle as well, and now only contains forty six answers of juice, down from fifty to set with me on this new bottle.

Think, no, it's fine. Now I don't know why everyone's going in, you know, getting in such a tizi about IT. But IT has had a very dramatic effect on sales.

In july, rocket, a sales fell eight point three percent from the previous year. In August, sales drop ten point nine percent. And then they absolutely created.

In october, tropicana sales fell nearly twenty percent year over year. I don't know how much they has to with the bottle. I looked at the bottle IT looks like any other orange use bottle, and maybe that is the problem.

I can I had this wide approach and a bigger bottle cap that I guess people like this one is much slimmer as a smaller appeared and looks very much more generic. Maybe that's what customers are pushing back on, but this is not the first time the chop. Cana has had a botched redesign in two thousand and nine and changes cartoons to look much more minimal.

Alist from that strike sty in the orange, just which very iconic. And they moved away from that, and then customers revolted. And after six weeks, top canna brought back the the striped straw.

I tell you what, floridians, we are fynney when he comes to our traffic. O we just wanted to look the same and remind us of, you know, the burning orange feels that I smell growing up every morning.

Okay, let's rap IT up there. It's great to be back and spend some time with you this tuesday morning. Thanks so much for listening, and have a great rest of your day.

For any questions, comments or feedback, send an email to morning brew daily at morning blue dot com. Know, catching up on some senna, the stock philosophers. And one of his quotes stood out to me. He said, there is no delight in owning anything on shared. So if you want to experience some of this delight, share boring, grew dali with your friends, family or co workers who could use a morning pick me up and if no one spring to me immediately. Tobias.

inspiration, so we know that forty percent of adults under thirty get their news from news influencers. But that up to forty five percent, maybe fifty percent, by sending your favorite new influencers to them via this podcast.

All right, let's all the credits. M million is our executive producer. Rap is our producer.

A livia gram is our asia producer. You a ogi is our technical director. Film mino is on audio. The fcc will let her and make up. B David, amy is our cheap content officer and our shows a production of morning group.

Great show. They, kal, let's run IT back tomorrow.