A federal judge is blocking JetBlue Airways from buying Spirit Airlines, saying the deal would reduce competition.

A federal judge is siding with the Biden administration and blocking JetBlue Airways from buying Spirit Airlines, saying the $3.8 billion deal would reduce competition.

The Justice Department sued to block the merger, saying it would drive up fares by eliminating Spirit, the nation’s biggest low-cost airline.

JetBlue argued that the deal would help consumers by making JetBlue a stronger competitor against bigger rivals that dominate the U.S. air-travel market.

U.S. District Judge William Young, who presided over a non-jury trial last year, said in the ruling Tuesday that the government had proven that the merger “would substantially lessen competition” and violated a century-old antitrust law.

    • bobs_monkey@lemm.ee
      16·
      10 months ago

      My thoughts exactly. United as well. JetBlue isn’t big enough to fly past antitrust regulations (pun intended).

  • mlg@lemmy.worldEnglish
    141·
    10 months ago

    Government when Delta buys out all its competitors on the east coast and makes every airport its ***** hub: :D

    Government when Jetblue tries to buy the second worse quality airline with a webpage that runs on some crappy Orcale DB and is exclusively marketed in highlighter paint bucket yellow: >:(

    • partial_accumen@lemmy.world
      7·
      10 months ago

      Spirit and Frontier are head to head competitors in their space. Coming in pretty far behind is Allegiant.

      Removing Spirit would remove nearly all pricing competition in that market segment.

    • Ranvier@sopuli.xyz
      3·
      10 months ago

      Hey I’m just happy someone is stopping the airlines from consolidating even further. Rare victory. But to answer your question the Biden admin has been more aggressive about using anti trust law to stop big mergers that would reduce competition. Unfortunately not always successfully, up to the judge to rule in the end.