Justice Department sues to block JetBlue’s acquisition of Spirit Airlines

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JetBlue's takeover of Spirit would create the fifth-largest airline in the country and also eliminate Spirit.

JetBlue's takeover of Spirit would create the fifth-largest airline in the country and also eliminate Florida-based Spirit, with its business model of rock-bottom fares and fees for everything from carry-on baggage to seat assignments.

"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 Justice Department said in its complaint, filed in a Massachusetts court on Tuesday. "Spirit itself put it simply: 'A JetBlue acquisition of Spirit will have lasting negative impacts on consumers.

JetBlue has argued the combination would allow it to better compete with large airlines that dominate the U.S. market. The deal would also give JetBlue access to more Airbus jetliners and pilots, which are both inJetBlue plans to remodel Spirit's bright-yellow planes with packed-in seats to JetBlue's, which include seat-back screens and more legroom.

"JetBlue competes hard against Spirit, and views it as a serious competitive threat. But instead of continuing that competition, JetBlue now proposes an acquisition that Spirit describes as 'a high-cost, high-fare airline buying a low-cost, low-fare airline," the DOJ said.A JetBlue-Spirit combination would be the first major U.S. airline merger since

 

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why block it. One bad airline purchasing another bad one. Maybe they can create a mediocre one. LOL!

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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 »