DOJ sues to halt JetBlue – Spirit airline merger
The Biden administration confirmed it plans to stop the $3.8 billion JetBlue – Spirit Airlines airline merger.
It sued to block JetBlue Airways’ $3.8 billion purchase, citing reduced competition.
The Justice Department said it would especially impact customers of Sprit Airlines who rely on low fares.
“If allowed to proceed, this merger will limit choice and drive up ticket prices across the country” the antitrust lawsuit claims.
It would ‘eliminate Spirit’s unique and disruptive role in the industry.’
The airline merger would see the country’s biggest ultra low-cost carrier swallowed up by JetBlue
The DOJ says it would see about half of all ultra-low-cost seats disappear.
JetB;lue says it plans to challenge the suit.
“We believe the DOJ has got it wrong on the law here and misses the point,” JetBlue Robin Hayes said.
The legal challenge was expected by the airlines.
“When we got approved by the Spirit shareholders last year, we were expecting a trial,” he added.”
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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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