JetBlue's Proposed Acquisition of Spirit Airlines Faces Legal Challenge
Justice Department argues the merger would lead to higher prices, while JetBlue contends it would enhance competition with larger airlines.
- JetBlue Airways is seeking to buy Spirit Airlines, the nation's largest ultra-low-cost airline, which would make JetBlue the fifth-largest airline in the country and further reduce competition in the industry.
- The Justice Department has sued to block the deal, arguing it would be anticompetitive and lead to higher prices for consumers.
- JetBlue argues that the merger would allow it to compete more effectively with larger airlines and eventually bring prices down.
- However, internal documents revealed in court show that JetBlue plans to increase prices on the acquired Spirit routes, potentially by as much as 40 percent.
- Despite JetBlue's struggles and Spirit's potential bankruptcy, some argue that the merger could lower prices in many markets and increase competition with the 'big four' airlines.