JetBlue and Spirit have anticipated the government challenge for weeks. The government had previously requested additional documents and depositions about JetBlue’s proposal to buy Spirit, the nation’s biggest budget airline. Negotiations over a possible settlement failed.
“If the acquisition is approved, JetBlue plans to abandon Spirit’s business model, remove seats from Spirit’s planes, and charge Spirit’s customers higher prices,” the department lawyers wrote. “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.
JetBlue held on to hope that the administration would come around to its argument that the combination with Spirit would be far smaller than other deals and would help consumers by putting pressure on the bigger airlines.a little over 9% of the domestic air-travel market, far smaller than American, Delta, United and Southwest. JetBlue executives repeatedly said their deal was not like Pepsi buying Coca-Cola — a line that Hayes repeated Tuesday.
The Justice Department sued to block the last megadeal, American’s merger with US Airways, then reached a settlement that required the carriers to give up some gates and takeoff and landing slots at several major airports. Before that, the government allowed Delta to buy Northwest, United to merge with Continental, and it later let Southwest buy AirTran.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:
United States United States Latest News, United States United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
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 »
Justice Department sues to block JetBlue’s acquisition of Spirit AirlinesJetBlue's takeover of Spirit would create the fifth-largest airline in the country and also eliminate Spirit. why block it. One bad airline purchasing another bad one. Maybe they can create a mediocre one. LOL!
Source: CNBC - 🏆 12. / 72 Read more »
Justice Department Sues to Block JetBlue-Spirit MergerBreaking: The Justice Department filed a lawsuit seeking to block JetBlue Airways from merging with Spirit Airlines, arguing the deal would stifle competition and lead to higher fares The Justice Department worrying about things that might happen over things that have happened isn’t justice. See exhibit A; the lack of justice over Jeffery Epstein and his clients? 🦗 🦗 🦗 When trying to determine whether the deal is good or bad for the consumer, ask yourself this… Do the big four (UA, AA, DL, WN) want the merger to succeed or to be blocked? I get wanting competition in the airline business, but spirit is such a shitty airline it’s probably better for them to attach themselves to JetBlue.
Source: WSJ - 🏆 98. / 63 Read more »
Justice Department files suit to block JetBlue merger with Spirit AirlinesBREAKING: Justice Department files lawsuit to stop the proposed merger between JetBlue and Spirit Airlines. More Biden government nonsense. this seems like government overreach, they would only have like 8% of the total market, there's no need for this waste of tax payers money Why is this being blocked?
Source: ABC - 🏆 471. / 51 Read more »