A JetBlue plane taking off at Newark Liberty International Airport
The U.S. Department of Justice filed a lawsuit that seeks to block JetBlue Airways’ planned merger with Spirit Airways. The DOJ argues that JetBlue’s proposed acquisition of the smaller carrier would lead to higher fares for travelers by stifling competition.
“If allowed to proceed, this merger will limit choices and drive up ticket prices for passengers across the country,” U.S. Attorney General Merrick Garland said speaking at a news conference on Tuesday.
The two airlines said they would “continue to advance” their merger plans.
“Customers deserve a competitive airline marketplace and we will pursue this merger to ensure they get it,” said Robin Hayes, JetBlue’s CEO, in a written statement.
The states of New York and Massachusetts as well as the District of Columbia joined the federal government’s lawsuit, which was filed in Massachusetts federal court.
Officials at the DOJ contend that the combination would eliminate the nation’s largest ultra-low-cost competitor to major carriers and reduce overall capacity.
JetBlue announced a deal to acquire Spirit Airlines in a $3.8 billion transaction on July 22, 2022. The deal has the potential to reshape the airline industry in the United States. The move came one day after Frontier’s bid for Spirit fell apart.
If the merger is consummated, JetBlue would become the nation’s fifth largest carrier, after American Airlines, Delta Air Lines, Southwest Air Lines, and United Airlines.
“We believe we can uniquely be a solution to the lack of competition in the U.S. airline industry and the continued dominance of the big four,” said JetBlue CEO Hayes in a statement at the time. “By enabling JetBlue to grow faster, we can go head-to-head with the legacies in more places to lower fares and improve service for everyone.”
Spirit and Frontier had originally announced merger plans in February but that deal was called off after an extensive bidding war between JetBlue and Frontier. Ultimately, Sprit was unable to convince its shareholders to back the Frontier deal, which was almost $1 billion less than JetBlue’s.
(Photo: Accura Media Group)
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