U.S. Federal Government Is Suing To Stop JetBlue’s Purchase of Spirit Airlines

Although I grew up traveling to Walt Disney World by making the 18-hour drive from Chicago to Orlando, in recent years I have chosen to fly down.

Entering the world of airlines and airports has been a real eye-opener for me. There are way more options and decisions to be made than I ever would have considered.

Photo: OIA

When flying into Orlando International Airport (MCO), I usually do not choose to fly Spirit Airlines, although I know many people who do. That is why the new controversy over JetBlue’s purchase of the airline is so interesting.

JetBlue’s Proposed Deal

For those who don’t know, JetBlue has proposed a $3.8 billion deal to buy Spirit Airlines.

Photo: JetBlue

For the first time in over 20 years, however, the United States federal government is suing to stop the merger.

In a lawsuit announced today by Attorney General Merrick Garland, the government is arguing that the merger would harm consumers by destroying competition between airlines.

Photo: AP

The lawsuit came as no surprise to those who had been following the issue. The Biden administration has previously argued that there needs greater competition between airlines to lower costs for consumers.

“If not blocked, the merger of JetBlue and Spirit would result in higher fares and fewer choices for tens of millions of travelers across the country. The Justice Department is suing to prevent that from happening,” said Garland.

A Series of Mergers

Over the last 22 years, the Justice Department has allowed a series of five airline mergers. These deals have turned nine major US carriers into four. Currently, American Airlines, Delta Airlines, United Airlines, and Southwest Airlines make up 80% of the nation’s air traffic.

JetBlue argues that by acquiring Spirit, they will create stronger competition.

Photo: Spirit

“We believe the DOJ has got it wrong on the law here and misses the point that this merger will create a national low-fare, high-quality competitor to the Big Four carriers which – thanks to their own DOJ-approved mergers – control about 80% of the US market,” said JetBlue CEO Robin Hayes.

JetBlue Will Move Forward

Despite the lawsuit, JetBlue has promised to move forward with its purchase of Spirit. In fact, the airline hopes to close the deal by the end of the year.

Photo: JetBlue

“The combination of JetBlue and Spirit plus the rapid growth of ultra low cost carriers will assure increased competition and low fares,” said a statement from JetBlue.

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