JetBlue, Spirit ending $3.8B deal to combine after court ruling blocked their merger
JetBlue and Spirit Airlines are ending their proposed $3.8 billion merger after a federal judge blocked the deal, ruling it would hurt competition
JetBlue Airways and Spirit Airlines are ending their proposed $3.8 billion merger weeks after a federal judge blocked the deal, saying it would hurt consumers who depend on Spirit's lower fares.
JetBlue said Monday that even though both companies still believe in the deal, they were unlikely to meet the closing conditions required in the agreement before a July 24 deadline.
JetBlue's new CEO, Joanna Geraghty, called the merger “a bold and courageous plan intended to shake up the industry status quo” and speed JetBlue's growth.
“However, with the ruling from the federal court and the Department of Justice’s continued opposition, the probability of getting the green light to move forward with the merger anytime soon is extremely low,” Geraghty said in a memo to employees of New York airline. She said uncertainty over the merger's fate was distracting the airline from its effort to return to profitability.
Spirit CEO Ted Christie said he was disappointed that the airlines could not combine and create a new challenger to the nation's four biggest airlines but said he is confident that Spirit — which has been losing money since the pandemic started — can succeed on its own.
The Justice Department sued to block the merger last year, saying it would reduce competition and drive up fares, especially for travelers who depend on low-fare Spirit.
In January, a federal district judge in Boston sided with the government and blocked the deal, saying it violated antitrust law.
On Monday, the Justice Department took a victory lap.
“Today’s decision by JetBlue is yet another victory for the
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