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USA: towards blocking JetBlue-Spirit merger

American government would like to stop acquisition due to competition fears

The US government wants to block the planned acquisition of the low-cost airline Spirit Airlines by the airline JetBlue Airways. This is a deal worth 3.8 billion dollars. The US Department of Justice wants the stop, which is urging the judges of the federal court in Boston to block the merger procedure. 

The goal of President Joe Biden's administration is to preserve competition among low-cost airlines by ensuring that air travel tickets remain affordable for US consumers. Regulators' antitrust fear is that the deal between JetBlue and Spirit could create an aviation giant that negatively impacts the low-cost flight market. 

Today the sector in the United States is dominated by four large companies (United Airlines, American Airlines, Delta Air Lines, Southwest) which alone control 80% of the domestic market. The merger between Spirit Airlines and JetBlue Airways is being evaluated by US District Judge William Young, who will determine whether or not the agreement harms consumers by reducing choice and generating fare increases. Its opinion is expected by the end of the year.

Gic - 1254625

AVIONEWS - World Aeronautical Press Agency
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