The antitrust lawsuit seeking to prevent the merger of JetBlue Airways and Spirit Airlines will be heard by the United States District Court in Massachusetts on October 16th, 2023, reported SimpleFlying.
JetBlue Airways proposed a merger with Spirit Airlines in a billion-dollar deal for the summer of 2022. This acquisition would make JetBlue the fifthlargest airline in the US, competing directly with other major domestic carriers. The four domestic airlines, Southwest Airlines, Delta Air Lines, American Airlines, and United Airlines, currently make up around 80% of the aviation market share in the United States.
Read more: JetBlue & Spirit Airlines Set October Date For Merger Vote
The United States Department of Justice stepped in shortly after the merger was announced. The Justice Department is suing to block the $3.8 billion acquisition to prevent industry consolidation. The Justice Department released a statement in addition to the complaint, stating,
“JetBlue’s plan would eliminate the unique competition that Spirit provides—and about half of all ultra-low-cost airline seats in the industry—and leave tens of millions of travelers to face higher fares and fewer options. Spirit itself put it simply: ‘A JetBlue acquisition of Spirit will have lasting negative impacts on consumers.’”
Featured News
EU Conducts First-Ever Raids on a Company Under Foreign Subsidies Regulation
Apr 23, 2024 by
CPI
FTC Moves to Ban Non-Compete Agreements, Aiming to Boost Labor Mobility
Apr 23, 2024 by
CPI
Federal Judge Nods at $418M Deal in Real Estate Antitrust Suit
Apr 23, 2024 by
CPI
Mexican Watchdog Probes Amazon and Mercado Libre Over Loyalty Bundles
Apr 23, 2024 by
CPI
Competition Commission of India to Probe AI Landscape for Competition
Apr 23, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI