The United States Department Of Justice has officially filed a civil antitrust lawsuit blocking JetBlue Airways proposed merger with ultra-low-cost carrier Spirit Airlines. The complaint filed in the District of Massachusetts, alleges that the JetBlue Spirit merger would eliminate ultra-low-cost capacity leading to an increase in fares and fewer seats. In a press release Attorney General Merrick B. Garland stated, “As our complaint alleges, the merger of JetBlue and Spirit would result in higher fares and fewer choices for tens of millions of travelers, with the greatest impact felt by those who rely on what are known as ultra-low-cost carriers in order to fly.” He also stated, “Companies in every industry should understand by now that this Justice Department will not hesitate to enforce our antitrust laws and protect American consumers.” Many routes operated by the two airlines see fierce competition. For example the two airlines currently have a large hub in Fort Lauderdale. The Justice Department argues that the limited competition and further consolidation will raise the ticket prices on many routes eliminating half of the ultra-low-cost capacity in the United States. The complaint further alleges that Spirit Airlines has doubled their network size in the past ten years without the merger deal. JetBlue has also recently partnered with American Airlines in a Northeast Alliance to strengthen both airlines presence in the Northeast which the Justice Department has sued to block.
In the coming months only time will tell if the JetBlue Airways and Spirit Airlines merger will come to fruition. Currently the fate of the JetBlue & American Airlines Northeast Alliance also hangs in the balance.