Justice Department files lawsuit to block Jetblue-Spirit merger
The U.S. Department of Justice filed an antitrust lawsuit Tuesday to try to block JetBlue’s purchase of low-cost carrier Spirit Airlines.
The announcement, made Tuesday at a press conference by U.S. Attorney General Merrick Garland, comes after several U.S. media reported that the Joe Biden administration would try to prevent the merger.
“Suppressing competition between JetBlue and Spirit (…) would eliminate Spirit’s unique and disruptive role in the industry and do significant harm to consumers,” the Justice portfolio holder asserted.
The U.S. considers that the $3.8 billion purchase of the low-cost airline would have a negative impact on travelers, who would see its flight offerings reduced while increasing the price of airline tickets.
→ JetBlue plans to operate more than 250 daily flights in Fort Lauderdale by 2027
In this regard, Garland recalled that Spirit’s own board told its shareholders that JetBlue’s plan to reconfigure flights would result in “a decrease in capacity and increase prices for consumers.”
The attorney general defended that the merger would occur “against the backdrop of an aviation industry that is already highly concentrated.”
The Department of Transportation, headed by Pete Buttigieg, has faced numerous criticisms over its management of the air transportation system in the wake of the waves of flight delays and cancellations the country experienced throughout 2022.
Buttigieg himself has vowed to take action against airlines if they fail to take the necessary actions to protect consumers, most recently in the case of Southwest Airlines and its spate of flight cancellations over Christmas.
According to Department of Justice data, the four largest U.S. airlines – American Airlines, Delta Air Lines, United Airlines and Southwest Airlines – control 80% of the market.
The purchase of Spirit by JetBlue would make the latter the fifth largest airline in the country.
Spirit announced last July that it would accept JetBlue’s offer, although it had previously expressed its concern about the possible acquisition due to the airline’s alliance with American Airlines in the northeast area of the U.S., and the Justice Department is also trying to block it, EFE reported.
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Plataforma Informativa de Aviación Comercial líder en América Latina.