The U.S. Department of Justice (DOJ) has announced that the U.S. District Court for the District of Massachusetts has rejected JetBlue Airways' attempt to acquire Spirit Airlines. The court stated in its decision that the proposed $3.8 billion deal "does violence to the core principle of antitrust law: to protect the United States’ markets—and its market participants—from anticompetitive harm."
In a press release issued by the DOJ, it was revealed that in March 2023, a lawsuit was filed against the acquisition under Section 7 of the Clayton Act. This legal action was supported by California, Maryland, Massachusetts, New Jersey, New York, North Carolina and the District of Columbia. The DOJ argued that JetBlue's purchase of Spirit Airlines, described as its "largest and fastest-growing ultra-low-cost rival," would have eradicated half of the ultra-low-cost capacity in the United States. This could have led to increased fares and fewer seats on all routes operated by Spirit Airlines, potentially disadvantaging millions of travelers, especially those who are cost-conscious.
JetBlue and Spirit released a joint statement regarding their proposed merger agreement which was announced in July 2022. Their ambition was to challenge the four largest airlines controlling more than 80% of the market. "We believe we can uniquely be a solution to the lack of competition in the U.S. airline industry and the continued dominance of the Big Four," said Robin Hayes, CEO of JetBlue, in this press release. "By enabling JetBlue to grow faster, we can go head-to-head with the legacies in more places to lower fares and improve service for everyone."
According to another press release from DOJ, this decision came after a trial lasting 17 days. Principal Deputy Assistant Attorney General Doha Mekki from DOJ’s Antitrust Division said in this press release: "The Court’s decision today reaffirms that the antitrust laws vindicate the economic liberty of the American people."
