Antitrust can kill niche carriers

Regulators who block mergers to preserve market ‘competition’ can unintentionally eliminate the very competitive pressure they seek to protect if firms are fragile and exposed to shocks. In industries with concentrated legacy players and high fixed costs (airlines), a preservationist antitrust posture should factor in resilience (fuel price shocks, recalls) and the realistic exit options for smaller rivals. — Antitrust policy debates should weigh firm viability and system resilience, not only static market structure, because enforcement decisions can accelerate industry consolidation or collapse during shocks.