JetBlue-Spirit Airlines deal blocked
JetBlue’s planned $3.8bn takeover of Spirit Airlines has been nixed by a federal judge.
US district judge William Young ruled against the merger, agreeing with the Department of Justice that it would be a bad deal for competition and consumer choice.
The availability of Spirit Airlines’ cheaper fares ‘would likely be harmed’ by the acquisition, he said.
It would ‘substantially lessen competition.’
Both airlines are now ‘considering next steps,’ they said in a joint statement.
They still have the option to appeal the ruling.
“We disagree with the US District Court’s ruling. We continue to believe that our combination is the best opportunity to increase much needed competition and choice,” the airlines said.
“JetBlue’s termination of the Northeast Alliance and commitment to significant divestitures have removed any reasonable anti-competitive concerns.”
The DOJ had argued the deal would lead to higher airfares and ‘extinguish a vital source of low cost competitive disruption on more than 375 routes.’
It claimed it would cost consumers $1 billion in higher fares annually.
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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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