Lawsuit Alleges JetBlue’s Purchase Of Spirit Airlines Violates Anti-Trust Laws

Several more states have joined a federal lawsuit opposed to JetBlue’s purchase of budget airline Spirit Airlines.

California, New Jersey, Maryland, and North Carolina all oppose the $3.8 billion purchase as many, including the Biden administration, believe it would reduce competition and drive up airline prices.

The lawsuit also adds that it would impact over 150 flight routes making them less competitive and thereby allowing airlines to increase prices without other options.

Yet, JetBlue argues that it will make them a stronger competitor against US leaders American, Delta, United, and Southwest. These airlines control approximately 80% of the domestic US market, whereas JetBlue and Spirit together account for approximately 10%. JetBlue believes that they could offer more national low-fare options through this merger to contest the large market players.

But the lawsuit claims that since Spirit accounts for approximately 50% of the ultra-low-cost market in the US,  merging Spirit with JetBlue could reduce the airline’s ability to offer these extremely cheap fares and overall make flights in the US more expensive.

The trial is scheduled to begin on October 16 in Boston.

Check out the video below to see why the Justice Department is opposed to JetBlue purchasing Spirit Airlines:

Featured image from Spirit Airlines

Written by
Danielle Levy

Danielle Levy is currently enrolled in University of San Diego’s MBA program with a concentration in Corporate Social Responsibility. She is the cohort representative, VP of Student Organizations for the Graduate Student Business Association, and Director of Operations for Net Impact. Danielle has several years of experience in the sustainability education world and has held various positions in human resources and intern management. She also worked at a local coffee shop for about 2 years. Danielle is passionate about the ties between sustainability and social impact. She spent 8 years in colorguard, including 3 international competitive seasons.

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