DOJ files suit opposing proposed JetBlue acquisition of Spirit Airlines

In a complaint filed in the U.S. District Court for the District of Massachusetts, the Department of Justice is joined by the state of Massachusetts, the state of New York and the District of Columbia in alleging "JetBlue’s proposed $3.8 billion acquisition of Spirit would eliminate the largest and fastest-growing ultra-low-cost carrier in the United States." The suit states in part: "JetBlue competes hard against Spirit, and views it as a serious competitive threat. But instead of continuing that competition, JetBlue now proposes an acquisition [that if approved,] JetBlue plans to abandon Spirit’s business model, remove seats from Spirit’s planes, and charge Spirit’s customers higher prices. 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… This acquisition violates Section 7 of the Clayton Act and should be enjoined."