Thrifty Banker
  • Politics
  • Business
  • World
  • Investing
  • Politics
  • Business
  • World
  • Investing

Thrifty Banker

Business

Judge blocks JetBlue-Spirit merger in a major win for Biden’s Justice Department

by January 17, 2024
January 17, 2024
Judge blocks JetBlue-Spirit merger in a major win for Biden’s Justice Department

A federal judge blocked JetBlue Airways’ purchase of budget rival Spirit Airlines, a major win for Biden’s Justice Department, which sued to stop the merger, alleging it would drive up fares for some of the most price-sensitive consumers.

JetBlue’s proposed $3.8 billion purchase of discounter Spirit would have produced the country’s fifth-largest airline, a deal the carriers said would help them better grow and compete against larger rivals like Delta and United.

The decision, handed down Tuesday by a federal judge in Boston, marks a victory for a Justice Department that has aggressively sought to block deals it views as anticompetitive.

“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,” the Justice Department alleged in its lawsuit in March.

Spirit shares plunged after the decision was announced and were down 60% shortly after 1 p.m. ET. JetBlue shares were down about 5% after briefly spiking.

Neither airline immediately commented on the decision.

JetBlue has said access to Spirit’s similar fleet of Airbus planes would allow it to grow quickly when planes and pilots are in short supply, growth it argues it needs to compete against bigger airlines. Years of previous consolidation left United, Delta, American and Southwest in control of about three-quarters of domestic market.

The decision leaves New York-based JetBlue grappling with next steps, tasking incoming CEO Joanna Geraghty with steering the airline on a new path. Geraghty was announced as successor to CEO Robin Hayes after he said earlier this month that he would retire.

The airline operates in highly congested airspace in New York and other cities, and had planned to use Spirit as a way to gain access to more routes and travelers.

JetBlue planned to remodel Spirit’s yellow planes by removing the branding and seats from the tightly-packed planes to provide more of a full-service model.

Spirit had grown rapidly in recent years by offering cheap fares and fees for everything else from seat assignments to carry-on luggage.

This post appeared first on NBC NEWS
0
FacebookTwitterGoogle +Pinterest
previous post
Beyond Lithium Intersects 2.30% Li2O over 3.84m in Wider Pegmatites Zone of 0.46% Li2O over 36.25m at the Ear Falls’s Wenasaga North Zone
next post
As EV sales growth slows, some drivers could buy one for as little as $10,000 this year

Related Posts

48,000 mattresses sold at Costco may have been...

September 24, 2023

Universal’s ‘Wicked: For Good’ creates a unique marketing...

January 26, 2025

Government shutdown November deadline: What happens to Social...

November 15, 2023

Dow closes more than 570 points higher to...

June 1, 2024

Restaurants are rebounding — but Starbucks and McDonald’s...

January 30, 2025

Star witness says FTX head Sam Bankman-Fried told...

October 11, 2023

Reddit co-founder Alexis Ohanian takes minority stake in...

May 16, 2025

Macy’s to cut more than 2,300 jobs and...

January 23, 2024

Why Trump’s iPhone tariff threat might not be...

May 25, 2025

Nestle to launch frozen pizzas, other foods targeting...

May 22, 2024

    Sign up for our newsletter to receive the latest insights, updates, and exclusive content straight to your inbox! Whether it's industry news, expert advice, or inspiring stories, we bring you valuable information that you won't find anywhere else. Stay connected with us!


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Popular

    • 1

      Top 10 Countries for Natural Gas Production (Updated 2024)

      April 6, 2024
    • 2

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 3

      Top 10 Uranium-producing Countries (Updated 2024)

      April 18, 2024
    • 4

      A GOP operative accused a monastery of voter fraud. Nuns fought back.

      January 3, 2025
    • 5

      Top 9 Nickel-producing Countries (Updated 2024)

      April 23, 2024
    • 6

      Australian abolitionist, Grace Forrest, receives coveted ‘Freedom from Fear’ award

      April 13, 2024
    • 7

      LME Sanctions on Russian Metal Push Copper, Nickel and Aluminum Prices Higher

      April 17, 2024

    Categories

    • Business (1,028)
    • Investing (2,046)
    • Politics (2,977)
    • Uncategorized (20)
    • World (3,347)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: thriftybanker.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 thriftybanker.com | All Rights Reserved