JetBlue-Spirit Merger Blocked Due to Antitrust Concerns

Judge cites violation of Clayton Antitrust Act, highlighting the airline industry's reliance on a single supplier, Boeing, as a key issue.

Judge William Young blocked the merger between JetBlue Airways and Spirit Airlines, citing it would violate the Clayton Antitrust Act of 1914, which prohibits price discrimination and focuses on mergers and acquisitions that could lessen competition.
The ruling suggests that the failure of the merger may be attributed to Boeing, as the airline industry's reliance on a single supplier has resulted in a lack of competition and growth.
JetBlue and Spirit argued that the merger was necessary for them to challenge the big four carriers – American, Delta, United, and Southwest – which collectively control 80% of the US airline market.
JetBlue's plan to dissolve Spirit and reconfigure its planes would have resulted in a cut of about 11 percent of all seats, potentially raising prices due to the inability to build more planes to fill the gap.
The ruling also highlights the issues in the aviation industry, including shortages of air traffic controllers and pilots, supply chain issues, and manufacturing bottlenecks.