Biden administration takes on JetBlue as its fight against industry consolidation goes to court
The Biden administration and JetBlue Airways are facing off in court over the Biden administration's effort to stop JetBlue from buying Spirit Airlines
The Biden administration’s fight against consolidation in the airline industry is being tested Tuesday as lawyers for JetBlue Airways and the Justice Department squared off in court.
The administration is suing to block JetBlue’s proposed $3.8 billion acquisition of Spirit Airlines. The trial in federal district court in Boston could reshape the market for low-cost airlines — Spirit is by far the nation’s biggest budget carrier, and it will disappear if JetBlue wins the case.
As the trial began with opening statements from lawyers for sides, shares of JetBlue were falling to their lowest levels in more than a decade after the airline reported a wider loss than expected in the third quarter and predicted another surprisingly large loss for the fourth quarter.
Executives declined to take questions about the Spirit deal. CEO Robin Hayes said it would be inappropriate while the matter was being debated in court.
The Justice Department is fresh off victory in a previous lawsuit that killed a partnership between JetBlue and American Airlines.
JetBlue isn't exactly the sort of behemoth that comes to mind when imagining a defendant in an antitrust case. It is the sixth-largest U.S. airline by revenue, and it is trying to buy the seventh-biggest. If it swallows Spirit, JetBlue will leapfrog Alaska Airlines but still control less than 10% of the U.S. air-travel market. It would remain far smaller than American, United, Delta or Southwest.
But if JetBlue gets its way, it will grow its fleet about 70%, repaint Spirit's yellow planes and make them less cramped inside.
The New York
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