DOJ sues to block JetBlue-Spirit merger, saying it will curb competition

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The Biden administration is trying to block the merger of JetBlue and Spirit Airlines, arguing the deal will lead to higher fares and fewer choices for travelers.

with its fellow ultra low cost carrier Frontier in a bid worth $2.8 billion and initially tried to fight off JetBlue's hostile takeover, but by upping the ante a couple of times times, JetBlue ultimately won over Spirit's shareholders and the company's board of directors.

And while some travelers might appreciate the extra legroom, the Justice Department argues others will be turned away by the higher fares that would result.The DOJ calls Spirit"a disrupter" in the airline industry But JetBlue's CEO Robin Hayes has argued that by flying the planes more often and more efficiently, fares will not increase after the merger, and that the the deal will ultimately benefit consumers by creating a stronger competitor to the big four airlines - American, Delta, Southwest and United, which currently control more than 80% of the market share.that he was disappointed but not surprised by the DOJ action filing the antitrust lawsuit.

Some Democratic lawmakers and consumer advocates have been pressuring the Biden administration to try to block the merger, citing a slew of mergers of the last two decades that have left just four airlines controlling more than 80% of the U.S. air travel market. "We have never before enthusiastically supported a merger," says AFA president Sara Nelson, noting its strong opposition to eight previous airline consolidations over the last decade, saying the union"does not offer our support lightly."

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So the government is trying to block the government on something the government allows/disallows? Gotcha

Good

I’m more worried about Albertson’s and Kroger

Now do Ticketmaster

They didn't offer 10% to the big guy.

If fewer choices means one of those choices is NOT Spirit Airlines, consumers win!

It’s ok, it’s ok, neither airline is being used

Biden is right...not sure if its legal to block the merger but it will mean higher prices.

Hunter didn't get his crack money from the airline

Finally. Finally. The government pushes back ever so slightly against the airline oligopoly.

Of course it will. Even less competition and more opportunity for collusion among the remaining carriers.

It’s also a violation of antitrust

All hail the mighty government that needs to be involved in every facet of our lives. What would we do without them?

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Justice Department Sues to Block JetBlue-Spirit Merger in Latest Antitrust Move From Biden AdministrationThe Department of Justice (DOJ) has filed a lawsuit to block a merger between JetBlue Airways and Spirit Airlines in the latest antitrust move from the Biden administration.
Source: truthout - 🏆 69. / 68 Read more »