DOJ to file suit blocking JetBlue’s takeover of Spirit

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The DOJ is expected to file suit as soon as Tuesday to block JetBlue’s pending $3.8 billion takeover of Spirit Airlines, arguing the deal would eliminate a critical low-cost carrier and raise prices in an already heavily-consolidated industry.

A JetBlue Airways Airbus A320 passes a Spirit Airlines Airbus A320 as it taxis on the runway, July 7, 2022, at the Fort Lauderdale-Hollywood International Airport in Fort Lauderdale, Fla. | Wilfredo Lee/AP PhotoThe Justice Department is expected to file suit as soon as Tuesday to block JetBlue’s pending $3.

The lawsuit, which has been looming over the pending merger for months, could delay the deal by well over a year. The companies have until early next year to close the deal, which is aimed at creating the nation’s fifth-largest airline in an industry dominated by Delta, American, Southwest and United.in late February, JetBlue CEO Robin Hayes and Spirit CEO Ted Christie both argued that the deal would mean lower prices for people who want to fly.

When asked for details about how the merger could drive down prices, Hayes said fares are a “function of capacity” and that Spirit flights would adopt JetBlue’s seat configuration. Though that means fewer seats, he argued that customers would still save because planes in the new, combined airline would spend more time in the air and less time on the ground.

The suit comes at a time of immense upheaval for the airline industry, including the December debacle in whichmore than 16,000 flights during the Christmas holidays. That episode helped stoke anger from consumers and regulators, amid complaints that decades of mergers have left passengers at the mercy of a monolithic airline industry.

Federal antitrust regulators have taken a harder line against a range of powerful businesses under President Joe Biden, including a recent

 

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Then break down all the other airlines then

Oriana0214 Nooooo! Let Spirit die!

High speed rail would make the airlines act like decent players for once. Right now they have a monopoly on fast travel within the US, not just a monopoly within the airlines themselves.

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WSJ News Exclusive | JetBlue, Spirit Brace for Justice Department Lawsuit to Block Airlines’ MergerJetBlue's CEO said he expects the Justice Department will try to block its planned takeover of Spirit in the coming days Come on this is david stern blocking cp3 to the lakers all over again AndrewTangel nice article. Has the breakup not been paid already?
Source: WSJ - 🏆 98. / 63 Read more »