Boston court to decide on bid to stop Jetblue takeover of Spirit

0
Robin Hayes CEO of Jetblue

The US Department of Justice is taking legal action to stop the $3.8 bn takeover of budget carrier Spirit Airlines by JetBlue Airways.

The case is being held in Boston without a jury and is expected to last around three weeks.

The DOJ argues that this merger would be anti-competitive, reduce choice and affordability for consumers.

Currently, the “big four” airlines—United Airlines, American Airlines, Delta Air Lines, and Southwest—control approximately 80pc of the domestic market.

JetBlue believes that the merger would enhance consumer choice and competition against the dominant big four airlines.To address antitrust concerns, JetBlue has agreed to divest Spirit Airlines’ slots at airports where it has a strong presence, such as New York City, Boston, Newark, and Fort Lauderdale.

Share.

Comments are closed.