Particle.news

Download on the App Store

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.
Hero image