Four States Join Lawsuit to Stop JetBlue-Spirit Merger
California, Maryland, New Jersey, and North Carolina have joined the U.S. Justice Department lawsuit aimed at preventing JetBlue Airways from buying rival low-cost carrier Spirit Airlines for $3.8 billion.
The U.S. Justice Department sued on March 7, seeking to stop the transaction. “If the acquisition is approved, JetBlue plans to abandon Spirit’s business model, remove seats from Spirit’s planes, and charge Spirit’s customers higher prices,” DOJ wrote in court filings. “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.”
JetBlue said on Friday “it’s unfortunate that these states have decided to join the DOJ’s effort to protect the dominant position of the four largest airlines in the U.S.”
Reuters reports that JetBlue pointed to large airports in the states that sued. Some examples are Newark, where United Airlines controls about 70% of the market, and Charlotte, American Airlines about 90%. “Preserving the status quo is the most anti-competitive step that the federal government and these states can take,” the airline said.
On the other hand, Florida Attorney General Ashley Moody resolved a state probe into the deal after the airlines agreed to increase seat capacity by at least 50% in both Fort Lauderdale and Orlando airports if the merger is completed.
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