The attempted JetBlue-Spirit merger has been stopped. A federal judge in Boston has blocked JetBlue Airways’ $3.8bn takeover of Spirit Airlines, agreeing with the US Department of Justice that the deal would harm competition and limit affordable ticket options.
The judge’s ruling is a victory for the Biden administration and raises concerns about other planned mergers in the airline industry.
Shares in Spirit Airlines dropped by 50pc, while JetBlue’s stock rose by 6pc following the ruling.
The decision also has implications for Alaska Air’s proposed $1.9bn acquisition of Hawaiian Airlines, with analysts suggesting a favourable ruling for the justice department would make it harder for Alaska to complete its transaction.
Spirit and NEA court documents of internal JetBlue communications indicated that JetBlue staff really believed their executives saying it was not a merger and they were creating a pro-consumer future.
See court documents here:
https://www.uschamber.com/assets/documents/District-Court-Decision.pdf
