Skift Take
As expected, the Justice Department is moving forward to block one of the biggest proposed tie-ups in U.S. airlines in years. Can the deal be saved?
The U.S. Department of Justice on Tuesday filed a suit to block the proposed $3.8 billion merger of JetBlue Airways and Spirit Airlines citing competition concerns.
The antitrust regulator claimed that the merger would negatively impact consumers by raising airfares by on average 30 percent, particularly in markets where both JetBlue and Spirit are large. That impact would be felt by at least the 30 million passengers that Spirit carried last year, plus everyone that pays less, thanks to the competitive effect of the discounter's bargain no-frills fares, the DOJ argued. Massachusetts, New York, and the District of Columbia joined the DOJ in the suit filed in the U.S. District Court for the District of Massachusetts.
“The merger of JetBlue and Spirit would result in higher fares and fewer choices for tens of millions of travelers across the country," U.S. Attorney General Merrick Garland said Tuesday. The merger would violate the Clayton Act that governs antitrust in the U.S.
The U.S. Department of Transportation said Tuesday that it backs the DOJ's position, and will de