DALLAS (AP) — A federal choose is siding with the Biden administration and blocking JetBlue Airways from shopping for Spirit Airlines, saying the $3.8 billion deal would scale back competitors.
The Justice Department sued to dam the merger, saying it might drive up fares by eliminating Spirit, the nation’s largest low-cost airline.
JetBlue argued that the deal would assist customers by making JetBlue a stronger competitor towards larger rivals that dominate the U.S. air-travel market.
U.S. District Judge William Young, who presided over a non-jury trial final yr, stated within the ruling Tuesday that the federal government had confirmed that the merger “would substantially lessen competition” and violated a century-old antitrust regulation.
“Spirit is a small airline. But there are those who love it. To those dedicated customers of Spirit, this one’s for you,” Young wrote.
Shares of Spirit Airlines Inc. plunged greater than half virtually instantly, whereas JetBlue shares gained 8%.
For JetBlue, the ruling was its second main setback in federal court docket in lower than a yr. Another choose in the identical Boston courthouse killed a partnership within the Northeast between JetBlue and American Airlines.
JetBlue, the nation’s sixth-largest airline by income, now should provide you with one other progress plan. That might be an project for incoming CEO Joanna Geraghty. Next month she’s going to change Robin Hayes, who had engineered each of the offers which have now been blocked in court docket.
Source: www.bostonherald.com”