U.S. Department of Transportation Secretary Pete Buttigieg recently posted on X (formerly known as Twitter) to express his approval of a federal judge's decision to block JetBlue Airways' planned $3.8-billion acquisition of Spirit Airlines. The U.S. Department of Justice (DOJ) had determined that the deal was anticompetitive and would negatively impact airline travelers.
Buttigieg stated, "After decades of airline consolidation, this ruling demonstrates the importance of putting competition first. This administration is holding the line on competition in order to support better consumer choice and lower airfares."
According to a DOJ news release, the U.S. District Court for the District of Massachusetts made this decision on Jan. 16 after a 17-day trial that began in October 2023. The court expressed its intention to protect the U.S. airline market with this ruling.
Attorney General Merrick B. Garland said, "Today’s ruling is a victory for tens of millions of travelers who would have faced higher fares and fewer choices had the proposed merger between JetBlue and Spirit been allowed to move forward." He added, "The Justice Department will continue to vigorously enforce the nation’s antitrust laws to protect American consumers. I want to thank the Antitrust Division for their excellent work on this case."
As reported by CNN Business, an airline analyst has suggested that there could be potential bankruptcy for Spirit Airlines as it might need to liquidate its assets due to this development. Helane Becker, a Cowen analyst, said, "We recognize this sounds alarmist and harsh, but the reality is we believe there are limited scenarios that enable Spirit to restructure." She added that she believes Spirit will first look for an alternative buyer but another airline may face similar resistance from antitrust regulators.
Principal Deputy Assistant Attorney General Doha Mekki from DOJ’s Antitrust Division commented on the court's decision saying, "The court’s decision today reaffirms that the antitrust laws vindicate the economic liberty of the American people." Mekki also mentioned, "We are particularly encouraged by the court’s acknowledgement of the role of the Justice Department in protecting consumers ‘who otherwise would have no voice’ and the ‘forthrightness, civility, and zealous advocacy’ that ‘assisted the Court in reaching out for justice.’ I am incredibly proud of the Antitrust Division’s staff and our state law enforcement partners whose tireless work ensured another airline merger would not harm American travelers."
