JetBlue's $3.8 billion buyout of Spirit Airlines is blocked by judge citing competition threat
A federal judge is siding with the Biden administration and blocking JetBlue Airways from buying Spirit Airlines, saying the $3.8 billion deal would reduce competition
JetBlue's $3.8 billion buyout of Spirit Airlines is blocked by judge citing competition threat
Show all 2A federal judge is siding with the Biden administration and blocking JetBlue Airways from buying Spirit Airlines, saying the $3.8 billion deal would reduce competition.
The Justice Department sued to block the merger, saying it would drive up fares by eliminating Spirit, the nation’s biggest low-cost airline.
JetBlue argued that the deal would help consumers by making JetBlue a stronger competitor against bigger rivals that dominate the U.S. air-travel market.
U.S. District Judge William Young, who presided over a non-jury trial last year, said in the ruling Tuesday that the government had proven “that the merger would substantially lessen competition in a relevant market.”
Shares of Spirit Airlines Inc. plunged more than 53% almost immediately.
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