US sues to block JetBlue from buying Spirit Airlines
Published:Tuesday | March 7, 2023 | 6:07 PM
The Biden administration sued to block JetBlue Airways' $3.8 billion purchase of Spirit Airlines, saying Tuesday that the deal would reduce competition and drive up air fares for consumers.
The Justice Department said the tie-up would especially hurt cost-conscious travellers who depend on Spirit to find cheaper options to JetBlue and other airlines.
Attorney General Merrick Garland held a news conference to announce the antitrust lawsuit — a sign of the importance that the administration places on stopping further consolidation in the airline industry.
“If allowed to proceed, this merger will limit choices and drive up ticket prices for passengers across the country” and “eliminate Spirit's unique and disruptive role in the industry,” he said.
The Justice Department lawsuit, filed in federal district court in Boston, stressed that the deal would mean the end of the nation's biggest “ultra-low-cost carrier.”
Those are airlines that generally provide the cheapest fares but also tend to charge more fees.
The Justice Department lawyers said Spirit's demise would eliminate about half of all ultra-low-cost seats in the market.
It cited a Spirit estimate that average fares fall 17% when it enters a route, and a JetBlue calculation that fares rise 30% when Spirit leaves a route.
The airlines vowed to continue fighting to salvage their agreement.
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