JetBlue Seeks Approval for $3.8 Billion Acquisition of Spirit Airlines Amid Opposition

The Justice Department argues the merger would reduce competition and raise fares, while JetBlue contends it would become a viable challenger to the industry's dominant airlines.

• JetBlue Airways is seeking court approval to acquire Spirit Airlines for $3.8 billion, a move that the Justice Department argues will raise fares and reduce competition.
• The acquisition would increase JetBlue's market share to over 10%, placing it behind United, the smallest of the big four airlines, which controls 16% of the market.
• The Justice Department argues that the merger would reduce competition, especially on the 262 routes where the airlines compete, and could increase JetBlue's market share on more than a dozen routes to over 50%.
• JetBlue argues that the merger will provide the scale to become a viable, disruptive fifth national challenger to the industry's dominant airlines.
• The outcome of the trial could reshape the field of ultra-low-cost airlines, with Frontier becoming the biggest discount carrier in the U.S. if Spirit is acquired by JetBlue.

11 Articles

The Salt Lake Tribune Fortune Boston Globe New York Post Reuters Financial Post Washington Post Associated Press Quartz Quartz Washington Post