Judge blocks JetBlue from acquiring Spirit Airlines
Judge blocks JetBlue from acquiring Spirit Airlines
The ruling is a victory for the Justice Department, which had argued that the merger would reduce competition.
There is a discussion on Hacker News, but feel free to comment here as well.
JetBlue really dodged a bullet on this one. That judge did them a favor they must not understand.
Spirit is absolute shit. There is no redeeming it, not even for its parts.
This is the best summary I could come up with:
A federal judge on Tuesday blocked JetBlue Airways’ proposed $3.8 billion acquisition of Spirit Airlines, a victory for the Department of Justice, which argued that the deal would harm travelers.
JetBlue planned to reconfigure tightly packed Spirit airplanes to match its own roomier layout, meaning it would reduce the number of seats.
President Biden hailed the ruling as a win for consumers in a post on the social media site X and said that his administration would aggressively enforce antitrust laws.
Jonnathan Handshoe, an airline analyst for CFRA Research, said JetBlue shares had risen because the rejected merger represented a $3 billion cost-saving measure for the company.
“We continue to believe that our combination is the best opportunity to increase much-needed competition and choice by bringing low fares and great service to more customers in more markets while enhancing our ability to compete with the dominant U.S. carriers,” the companies said.
In May, a federal judge blocked a partnership between JetBlue and American in Boston and New York after it was challenged by the Justice Department, which argued it dampened competition for flights in the northeast.
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