Justice Department sues to block JetBlue’s acquisition of Spirit Airlines

The Justice Department connected Tuesday sued to artifact JetBlue Airways' $3.8 cardinal projected takeover of fund bearer Spirit Airlines, the Biden administration's latest effort to forestall manufacture consolidation.

Spirit Airlines agreed to merchantability itself to JetBlue past summertime aft a agelong conflict for the bearer betwixt JetBlue and Frontier Airlines. New York-based JetBlue's acquisition of Spirit faced a high hurdle with regulators from the start, and the airline on Monday said it expected DOJ enactment this week.

JetBlue's takeover of Spirit would make the fifth-largest hose successful the state and besides destruct Florida-based Spirit, with its concern exemplary of rock-bottom fares and fees for everything from carry-on baggage to spot assignments.

"JetBlue's program would destruct the unsocial contention that Spirit provides—and astir fractional of each ultra-low-cost hose seats successful the industry—and permission tens of millions of travelers to look higher fares and less options," the Justice Department said successful its complaint, filed successful a Massachusetts tribunal connected Tuesday. "Spirit itself enactment it simply: 'A JetBlue acquisition of Spirit volition person lasting antagonistic impacts connected consumers.'"

JetBlue has argued the operation would let it to amended vie with ample airlines that predominate the U.S. market. The woody would besides springiness JetBlue entree to much Airbus jetliners and pilots, which are some successful short supply arsenic question request remains strong.

JetBlue plans to remodel Spirit's bright-yellow planes with packed-in seats to JetBlue's, which see seat-back screens and much legroom.

"JetBlue competes hard against Spirit, and views it arsenic a superior competitory threat. But alternatively of continuing that competition, JetBlue present proposes an acquisition that Spirit describes arsenic 'a high-cost, high-fare hose buying a low-cost, low-fare airline," the DOJ said.

New York, Massachusetts and Washington, D.C., besides joined the suit.

A JetBlue-Spirit operation would beryllium the archetypal large U.S. hose merger since Alaska Airlines' takeover of Virgin America successful 2016. The Justice Department astatine the clip required Alaska to standard backmost its codification stock with American Airlines to wide the deal.

The Justice Department besides sued to artifact American Airlines' 2013 merger with US Airways but settled, forcing American to merchantability dozens of gates and slots astatine congested airports similar Washington Reagan National Airport.

The Biden medication has vowed a hard enactment against deals it considers to beryllium anti-competitive and has sued to artifact different mergers, specified arsenic Penguin Random House's failed attempt to bargain rival steadfast Simon & Schuster. Yet the medication has failed to halt respective deals, specified arsenic 1 past twelvemonth successful the sweetener manufacture and UnitedHealth's merger with Change Healthcare.

The medication has besides taken purpose astatine the hose manufacture aft a big of question disruptions implicit the past 2 years, adjacent aft carriers received $54 cardinal successful payroll assistance to upwind the Covid pandemic.

Separately, JetBlue is awaiting a ruling connected its Northeast concern with American Airlines, which the Justice Department sued to undo successful 2021.