Federal Judge Blocks JetBlue’s Purchase Of Spirit

January 16, 2024 Business, Travel

CNBC reports:

A federal judge blocked JetBlue Airways’ purchase of budget rival Spirit Airlines, a major win for Biden’s Justice Department, which sued to stop the merger, alleging it would drive up fares for some of the most price-sensitive consumers.

JetBlue’s proposed $3.8 billion purchase of discounter Spirit would have produced the country’s fifth-largest airline, a deal the carriers said would help them better grow and compete against larger rivals like Delta and United.

The decision, handed down Tuesday by a federal judge in Boston, marks a victory for a Justice Department that has aggressively sought to block deals it views as anticompetitive.

CNN Business reports:



Spirit Airlines shares tanked 56% on Tuesday after a federal judge in Boston ruled against JetBlue’s proposed $3.8 billion acquisition of the discount airline.

The Biden administration has argued since taking office there needs to be greater competition between businesses, especially in the airline industry, to lower costs for consumers.

Spirit, with its low base fare business model that charges customers extra for everything, including carry-on bags, prompts larger carriers to offer a percentage of their seats at the lowest possible price.

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