JetBlue's takeover of Spirit would create the fifth-largest airline in the country and also eliminate Spirit.
JetBlue's takeover of Spirit would create the fifth-largest airline in the country and also eliminate Florida-based Spirit, with its business model of rock-bottom fares and fees for everything from carry-on baggage to seat assignments.
"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," the Justice Department said in its complaint, filed in a Massachusetts court on Tuesday. "Spirit itself put it simply: 'A JetBlue acquisition of Spirit will have lasting negative impacts on consumers.
JetBlue has argued the combination would allow it to better compete with large airlines that dominate the U.S. market. The deal would also give JetBlue access to more Airbus jetliners and pilots, which are both inJetBlue plans to remodel Spirit's bright-yellow planes with packed-in seats to JetBlue's, which include seat-back screens and more legroom.
"JetBlue competes hard against Spirit, and views it as a serious competitive threat. But instead of continuing that competition, JetBlue now proposes an acquisition that Spirit describes as 'a high-cost, high-fare airline buying a low-cost, low-fare airline," the DOJ said.A JetBlue-Spirit combination would be the first major U.S. airline merger since
United States Latest News, 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
Read more »
Justice Department set to block JetBlue's $3.8 billion deal for Spirit AirlinesThe carriers say joining forces would benefit travelers, but the blockbuster deal has been dogged by concerns it could hurt competition.
Read more »
Get into the Spirit: Behind the scenes of the 2023 Spirit AwardsBackstage at the Spirit Awards: A day at the beach with Michelle Yeoh, Paul Mescal, and Quinta Brunson
Read more »
Paul Manafort, Justice Department settle civil case over undeclared foreign bank accountsPaul Manafort, the former chairman of Donald Trump’s 2016 presidential campaign, has agreed to pay $3.15 million to settle a civil case filed by the Justice Department over undeclared foreign bank accounts.
Read more »
Justice Department task force takes aim at Russian oligarchs and their richesIn the year since Russia's invasion of Ukraine, KleptoCapture has brought charges against at least 35 individuals and corporate entities as the Biden administration and its allies seek to impose pain on Putin and the Russian elites who back him.
Read more »
Former Trump campaign chairman Paul Manafort settles case with Justice Department for $3.15MPaul Manafort has agreed to pay $3.15 million to settle a civil case filed by the Justice Dept. for his alleged 'willful failure to timely report his financial interest in foreign bank accounts,” according to court documents.
Read more »