The Biden administration’s fight against consolidation in the airline industry is being tested Tuesday as lawyers for JetBlue Airways and the Justice Department squared off in court.
Executives declined to take questions about the Spirit deal. CEO Robin Hayes said it would be inappropriate while the matter was being debated in court. But if JetBlue gets its way, it will grow its fleet about 70%, repaint Spirit’s yellow planes and make them less cramped inside. “Consumers are better off with an independent Spirit, not a JetBlue intent on removing seats from planes and charging higher fares,” government lawyers argued in their pre-trial brief. They say the harm will fall hardest on cost-conscious consumers.
This isn’t the first time that the government has challenged an airline merger. In 2013, regulators sued to stop the merger of American Airlines and US Airways. The deal, which created the world’s biggest carrier, went through without a trial, however, after the airlines agreed to give up some gates and takeoff and landing rights at seven major airports.
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US Seeks to Block JetBlue, Spirit Merger at TrialThe Biden administration's fight against consolidation in the airline industry will be tested Tuesday with lawyers for JetBlue Airways and the Justice Department squaring off in court.The administration is suing to block JetBlue's proposed $3.8 billion acquisition of Spirit...
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