The US Department of Justice (DOJ) has filed a civil antitrust lawsuit to block JetBlue's proposed $3.8 billion acquisition of Spirit Airlines.
The DOJ’s move, which has been made along with the attorneys general of Massachusetts, New York and the District of Columbia, alleges that the merger violates the Clayton Act, which prohibits mergers and acquisitions where the effect "may be substantially to lessen competition, or to tend to create a monopoly".
US attorney general Merrick Garland said: “We allege that, if allowed to proceed, this merger will limit choices and drive up ticket prices for passengers across the country.
“Spirit's own internal documents estimate that when it starts flying a route, average fares fall by 17 per cent, and an internal JetBlue document estimates that when Spirit stops flying a route, average fares go up by 30 per cent.”
The two carriers said they will continue with plans to create a “compelling national challenger for the Big Four airlines … after years of industry consolidation that the DOJ itself approved”.
“Customers deserve a competitive airline marketplace, and we will pursue this merger to ensure they get it,” said JetBlue CEO Robin Hayes in a statement. “There is too much at stake for the DOJ to prevent us from bringing the JetBlue difference to more customers in more markets.”
Spirit’s CEO Ted Christie added: “We will vigorously defend our position that a combined JetBlue and Spirit will be a game changer for customers nationwide, creating the most compelling national low-fare challenger to the dominant US carriers.”
JetBlue beat rival Frontier Airlines in a long-running battle to buy Spirit in July 2022. If the deal goes ahead, it will create the fifth largest carrier in the US.