The U.S. Department of Justice (DOJ) joined with attorneys general from several states and the District of Columbia to file a civil antitrust lawsuit to block JetBlue’s proposed $3.8 billion acquisition of low-cost rival Spirit.
In the suit filed in Massachusetts, the DOJ argued that further consolidating the U.S. commercial aviation industry would harm the flying public.
“As our complaint alleges, the merger of JetBlue and Spirit would result in higher fares and fewer choices for tens of millions of travelers, with the greatest impact felt by those who rely on what are known as ultra-low-cost carriers in order to fly,” said U.S. Attorney General Merrick Garland in a DOJ press release announcing the legal action.
The suit seeks to block the acquisition under Section 7 of the Clayton Act. The DOJ said if the deal was allowed to proceed, prices would increase on routes where the two airlines currently compete, adding there are currently more than 40 direct routes where the combined carriers’ market share is so high, the deal is “presumptively anticompetitive.”
Both Spirit and JetBlue disputed the DOJ claims about the proposed merger, with JetBlue CEO Robin Hayes saying: “We believe the DOJ has got it wrong on the law here and misses the point that this merger will create a national low-fare, high-quality competitor to the Big Four carriers which – thanks to their own DOJ-approved mergers – control about 80% of the U.S. market.”
