JetBlue-Spirit merger blocks Biden's Justice Department win

“JetBlue plans to convert Spirit aircraft to JetBlue design and charge its customers higher average JetBlue fares,” U.S. District Judge William Young wrote in his decision. “Getting rid of Spirit would hurt cost-conscious travelers who rely on Spirit’s low fares.”

The decision, issued on Tuesday, represents a victory for the Justice Department, which has aggressively sought to block deals it considers anticompetitive.

The Justice Department alleged in its March lawsuit that JetBlue's takeover of the budget airline would force “tens of millions” of passengers to pay higher fares by eliminating Spirit and “about half of all ultra-low-cost airline seats.” in the United States”. industry.”

Spirit shares tumbled after the decision was announced and fell by 60%, while JetBlue shares fluctuated between gains and losses.

None of the airlines immediately commented on the decision.

The decision leaves New York-based JetBlue grappling with next steps, as it tasks incoming CEO Joanna Geraghty with steering the airline on a new path. Geraghty was announced as CEO Robin Hayes' successor after he said earlier this month that he would retire.

JetBlue said access to Spirit's similar fleet of Airbus aircraft would allow it to grow quickly when planes and pilots are in short supply, growth it said it needed to compete with larger airlines. The airline operates in extremely congested airspace in New York and other cities, and had planned to use Spirit as a way to reach more routes and passengers.

Previous years of consolidation left United, Delta, American and Southwest controlling about three-quarters of the domestic market.

JetBlue planned to redesign its yellow Spirit planes by removing branding and seats from overcrowded planes to provide more of a full-service model.

“Although Spirit's aircraft will not be immediately repainted yellow as JetBlue's, the moment the merger takes place, Spirit and JetBlue will no longer be competitors,” Young wrote in his decision.

Spirit has grown rapidly in recent years by offering cheap fares and fees for everything else from seat assignments to carry-on luggage.

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