Biden administration takes on JetBlue as its fight against industry consolidation goes to court

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The Biden administration and JetBlue Airways are facing off in court over the Biden administration's effort to stop JetBlue from buying Spirit Airlines

The 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 Airlines. The trial in federal district court in Boston could reshape the market for low-cost airlines — Spirit is by far the nation’s biggest budget carrier, and it will disappear if JetBlue wins the case.

Spirit, which is based in Miramar, Florida, is known as an “ultra-low-cost carrier,” the name given to airlines that tout rock-bottom fares but make up for it by charging high fees for things like checking a bag or carrying one on board. Spirit even charges for soft drinks. Personal-finance site Nerdwallet said passengers should expect to pay $137 in fees on a typical one-way flight, compared with $35 or less at the bigger airlines – including JetBlue.

 

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