The Biden administration is trying to block the merger of JetBlue and Spirit Airlines, arguing the deal will lead to higher fares and fewer choices for travelers.
with its fellow ultra low cost carrier Frontier in a bid worth $2.8 billion and initially tried to fight off JetBlue's hostile takeover, but by upping the ante a couple of times times, JetBlue ultimately won over Spirit's shareholders and the company's board of directors.
And while some travelers might appreciate the extra legroom, the Justice Department argues others will be turned away by the higher fares that would result.The DOJ calls Spirit"a disrupter" in the airline industry But JetBlue's CEO Robin Hayes has argued that by flying the planes more often and more efficiently, fares will not increase after the merger, and that the the deal will ultimately benefit consumers by creating a stronger competitor to the big four airlines - American, Delta, Southwest and United, which currently control more than 80% of the market share.that he was disappointed but not surprised by the DOJ action filing the antitrust lawsuit.
Some Democratic lawmakers and consumer advocates have been pressuring the Biden administration to try to block the merger, citing a slew of mergers of the last two decades that have left just four airlines controlling more than 80% of the U.S. air travel market. "We have never before enthusiastically supported a merger," says AFA president Sara Nelson, noting its strong opposition to eight previous airline consolidations over the last decade, saying the union"does not offer our support lightly."
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