The Biden administration sued on Tuesday to block JetBlue Airways' $3.8 billion purchase of Spirit Airlines.
WASHINGTON --
Attorney General Merrick Garland was scheduled to hold a news conference to announce the lawsuit - a sign of the importance that the administration places on stopping further consolidation in the airline industry. "If the acquisition is approved, JetBlue plans to abandon Spirit's business model, remove seats from Spirit's planes, and charge Spirit's customers higher prices," the department lawyers wrote. "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.
The Justice Department was under pressure from Democratic lawmakers and consumer advocates who have complained about a wave of earlier mergers that regulators approved, and which left fewer airlines controlling a greater share of the market. The administration's concern about airline-industry consolidation was on display in 2021 when the Justice Department sued to kill a limited partnership between JetBlue and American Airlines in the Northeast.
They said the Justice Department created the environment of four airlines dominating the market, and JetBlue merely wanted a better chance at competing with the giants - all of whom grew through mergers and acquisitions between 2008 and 2013.
Deutschland Neuesten Nachrichten, Deutschland Schlagzeilen
Similar News:Sie können auch ähnliche Nachrichten wie diese lesen, die wir aus anderen Nachrichtenquellen gesammelt haben.
WSJ News Exclusive | JetBlue, Spirit Brace for Justice Department Lawsuit to Block Airlines’ MergerJetBlue's CEO said he expects the Justice Department will try to block its planned takeover of Spirit in the coming days
Weiterlesen »
Justice Department set to block JetBlue's $3.8 billion deal for Spirit AirlinesThe carriers say joining forces would benefit travelers, but the blockbuster deal has been dogged by concerns it could hurt competition.
Weiterlesen »
Justice Department sues to block JetBlue’s acquisition of Spirit AirlinesJetBlue's takeover of Spirit would create the fifth-largest airline in the country and also eliminate Spirit.
Weiterlesen »
US sues to block JetBlue from buying Spirit AirlinesThe Biden administration sued on Tuesday to block JetBlue Airways from buying Spirit Airlines, saying the deal would reduce competition and drive up air fares for consumers. The Justice Department said the tie-up would especially hurt cost-conscious travelers who depend on Spirit, a budget carrier, to find cheaper options than they can find on JetBlue and other airlines.
Weiterlesen »
Justice Department files suit to block JetBlue merger with Spirit AirlinesBREAKING: Justice Department files lawsuit to stop the proposed merger between JetBlue and Spirit Airlines.
Weiterlesen »
US sues to block JetBlue from buying Spirit AirlinesThe Biden administration is suing to block JetBlue Airways from buying Spirit Airlines, saying the deal would reduce competition and drive up air fares for consumers.
Weiterlesen »