Money & The Economy

JetBlue Hit With DOJ Antitrust Lawsuit Over Spirit Airlines Merger

The Department of Justice (DOJ) filed an antitrust lawsuit against JetBlue on Tuesday to prevent a planned merger with Spirit Airlines, Axios reported.

The $3.8 billion merger deal, which would make JetBlue the nation’s fifth-largest airline, was approved in October after a previous merger between Spirit and Frontier Airlines fell through, according to Axios. The DOJ is challenging the deal because it would “eliminate the unique competition that Spirit provides,” the complaint explains.

“Spirit’s ultra-low-cost business model has increased competition and brought low fares to hundreds of routes across the country, making it possible for more Americans—particularly the most cost conscious—to travel,” the complaint states, noting the merger could mean higher prices because of JetBlue’s plan to remove 10 to 15% of all seats from every Spirit plane.

“Fewer seats means fewer passengers—and higher prices for those who can still afford to make their way onto the plane,” it continues. “This is unlikely to stop business travelers flying on corporate expense accounts, but would put travel out of reach for many cost-conscious travelers.”

Attorney General Merrick Garland said that eliminating the competition between JetBlue and Spirit Airlines “would eliminate Spirit’s unique and disruptive role in the industry and significantly harm consumers” during a Tuesday news conference about the lawsuit.

JetBlue CEO Robin Hayes said in an interview on Monday it was his “expectation” that the DOJ would sue this week, the Wall Street Journal reported. “My sense is they came to the table with their minds made up,” he said.

In 2021, the DOJ sued JetBlue and American Airlines after the companies announced a planned consolidation of operations in Boston and New York. A federal court finished hearing arguments for the case in November.

The DOJ, JetBlue and Spirit Airlines did not immediately respond to requests for comment.

Content created by The Daily Caller News Foundation is available without charge to any eligible news publisher that can provide a large audience. For licensing opportunities of our original content, please contact licensing@dailycallernewsfoundation.org

Katelynn Richardson

Next Border Crisis: Officers Seize over $4 Million in Cocaine at Hidalgo International Bridge »

Previous « ‘Never Trumpers’ Host Gathering Featuring Panels On ‘Despair,’ Fate Of The GOP

Published by

Katelynn Richardson

3 years ago

Democrats Revolt Against Funding Homeland Security Triggering Likely Shutdown
The Senate failed to advance a full-year appropriations bill for the Department of Homeland Security…
Here’s What Parents Can Do Instead
As artificial intelligence (AI) and other technology begin to take over classrooms across the nation,…
US Warship Collides With Other Navy Ship, Crews Scramble To Deal With Injuries
A U.S. Navy warship and a supply ship collided into each other in Southern Command…