Justice Department Sues to Block JetBlue-Spirit Merger


JetBlue has said its merger with Spirit would increase competition among airlines and benefit air travelers .



Photo:

Joe Cavaretta/South Florida Sun Sentinel/TNS/Zuma Press

The Justice Department filed a lawsuit seeking to block

JetBlue

JBLU -0.42%

JetBlue

JBLU -0.42%

Airways Corp. from merging with

Spirit Airlines Inc.,

arguing the deal would stifle competition and lead to higher fares. 

The DOJ filed its lawsuit Tuesday in Massachusetts federal court. The states of New York and Massachusetts and the government of the District of Columbia are also plaintiffs on the civil case, which says the merger would eliminate Spirit as a low-cost competitor to the major carriers.  

“JetBlue’s plan would eliminate the unique competition that Spirit provides—and about half of all ultra-low-cost airline seats in the industry—and leave tens of millions of travelers to face higher fares and fewer options,” the complaint said.

JetBlue didn’t immediately respond to a request for comment Tuesday. The airline has said its merger with Spirit would increase competition among airlines and benefit air travelers by reducing overall fares in markets where the deal would allow it to expand.

American, United, Delta and Southwest are often called the big four U.S. airlines. JetBlue’s tie-up with Spirit would make it the fifth largest domestic carrier. WSJ’s Alison Sider and a former JetBlue executive explain how the combined airline could compete. Photo Illustration: Adele Morgan

Write to Dave Michaels at dave.michaels@wsj.com and Andrew Tangel at andrew.tangel@wsj.com

Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8


JetBlue has said its merger with Spirit would increase competition among airlines and benefit air travelers .



Photo:

Joe Cavaretta/South Florida Sun Sentinel/TNS/Zuma Press

The Justice Department filed a lawsuit seeking to block

JetBlue

JBLU -0.42%

JetBlue

JBLU -0.42%

Airways Corp. from merging with

Spirit Airlines Inc.,

arguing the deal would stifle competition and lead to higher fares. 

The DOJ filed its lawsuit Tuesday in Massachusetts federal court. The states of New York and Massachusetts and the government of the District of Columbia are also plaintiffs on the civil case, which says the merger would eliminate Spirit as a low-cost competitor to the major carriers.  

“JetBlue’s plan would eliminate the unique competition that Spirit provides—and about half of all ultra-low-cost airline seats in the industry—and leave tens of millions of travelers to face higher fares and fewer options,” the complaint said.

JetBlue didn’t immediately respond to a request for comment Tuesday. The airline has said its merger with Spirit would increase competition among airlines and benefit air travelers by reducing overall fares in markets where the deal would allow it to expand.

American, United, Delta and Southwest are often called the big four U.S. airlines. JetBlue’s tie-up with Spirit would make it the fifth largest domestic carrier. WSJ’s Alison Sider and a former JetBlue executive explain how the combined airline could compete. Photo Illustration: Adele Morgan

Write to Dave Michaels at dave.michaels@wsj.com and Andrew Tangel at andrew.tangel@wsj.com

Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

FOLLOW US ON GOOGLE NEWS

Read original article here

Denial of responsibility! Techno Blender is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – admin@technoblender.com. The content will be deleted within 24 hours.
AcquisitionsAcquisitions/MergersAcquisitions/Mergers/ShareholdingsAir TransportAirlinesBlockBusinessbusiness newsC&E Executive News FilterC&E Industry News FilterContent TypescorporateCorporate Actionscorporate crimeCorporate Crime/Legal ActionCorporate/Industrial NewscrimeCrime/Legal ActionDepartmentFactiva Filtersgeneral newsgovernment policyindustrial newsJBLUJetBlue AirwaysJetBlueSpiritJusticelegal actionlogisticsLow Cost AirlinesMarketMergermergersOwnership ChangesPassenger AirlinespoliticalPolitical/General NewsregulationRegulation/Government PolicySaveshareholdingsSpirit AirlinesSuesSYNDtransportationTransportation/LogisticsWSJ-PRO-WSJ.comwsjcorp
Comments (0)
Add Comment