DOJ to file antitrust suit against JetBlue, Spirit deal, Bloomberg reports

The Department of Justice and Department of Transportation are expected to take action as soon as Tuesday to block JetBlue’s (JBLUE) takeover of Spirit Airlines (SAVE), Leah Nylen and Anna Edgerton of Bloomberg report, citing people familiar with the case. The Justice Department is expected to file an antitrust lawsuit in federal court, alleging that the elimination of Spirit would increase ticket prices and decrease options for travelers, sources told Bloomberg. The Department of Transportation is expected to begin a parallel proceeding to block the transfer of Spirit’s airline certificate as incompatible with the public interest, the people added. Shares of Spirit Airlines are down 4% to $17.23 following the report while JetBlue is up 2% to $8.49.