JetBlue and Spirit Will Appeal Judge’s Ruling
JetBlue Airways and Spirit Airlines will appeal a federal judge’s ruling that blocked their merger. The judge said that the deal would violate U.S. antitrust law and sided with the U.S. Department of Justice in ruling against JetBlue’s planned $3.8 billion acquisition.
JetBlue and Spirit are the nation’s sixth- and seventh-largest carriers. JetBlue outbid Frontier Airlines in the process and said it needed to acquire Spirit to compete more effectively against even bigger airlines.
But the judge said that the merger would eliminate the largest budget carrier in the country and tat would mean higher prices for cost-conscious consumers.
The airlines filed a notice late on Friday that they will appeal judge William Young’s decision. It’s unclear how long that appeal process could take. JetBlue faces a July deadline to close the merger. So if the court case is not resolved by then, the two companies will have to decide whether they want to extend the deadline or just kill the deal.
The appeal continues the court fight to keep merger plans alive, a deal Spirit needs as it faces financial difficulties. The airline said Friday that it is trying to refinance its more than $1 billion of debt due in September 2025. The airline has been struggling due to softening travel demand, higher costs and planes grounded for a Pratt & Whitney engine issue.
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