Judge Blocks JetBlue’s Buyout of Spirit

Source: Jet Blue
A federal judge has blocked JetBlue’s buyout of Spirit Airlines, saying the purchase would reduce competition.
According to the Associated Press, U.S. District Judge William Young sided with the Biden Administration over the $3.8 billion deal, citing the deal would drive up airline fares for the consumer and “substantially lessen competition in a relevant market.”
“This is an enormous victory for travelers, workers, and local communities, and another huge win for antitrust enforcers at the DOJ,” said William J. McGee, Senior Fellow for Aviation and Travel at the American Economic Liberties Project, in a statement reported by the Associated Press. “For the first time in 40+ years, a judge has flat out blocked an airline merger to protect us all from an even more consolidated industry, agreeing with the DOJ’s rigorous and well-argued case that the deal would hurt competition and raise prices across the board.”
JetBlue argued the deal would help consumers by making JetBlue a stronger competitor against bigger rivals that dominate the U.S. air travel market, the AP reports.
Shares of Spirit Airlines Inc. plunged by more than 53 percent following the ruling.