Biden admin. leaning toward blocking JetBlue-Spirit merger: report

FAN Editor

The Department Justice is reportedly likely to sue to block a pending merger between JetBlue Airways Corp. and Spirit Airlines Inc. 

Some of the five individuals with knowledge of the matter that Politico cited told the outlet on Friday that the department could file suit as soon as March. 

They cautioned that the investigation is ongoing, no final decision has been made and that people in the department’s antitrust division are divided about whether to bring a case.

Politico noted that attorneys for the Justice Department had been scrutinizing the proposed $3.8 billion merger, which would create the fifth largest U.S. airline, since last summer – and said a separate person with knowledge of the deal said the airlines had long anticipated a lawsuit from the department. 

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FOX Business’ requests for comment from the Justice Department and the airlines were not immediately returned.

“We continue to work through the regulatory process to demonstrate how this merger will increase competition in the airline industry,” JetBlue said in an emailed statement to Reuters on Friday. A spokesperson for the airline told Politico the merger would create a “long overdue national low-fare challenger” to the other four largest airlines.

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Joanna Geraghty, JetBlue’s chief operating officer, told Reuters earlier in the week that the airlines are still optimistic they can avoid a lawsuit.

“We hope that the Justice Department recognizes that a bigger JetBlue is a great thing for consumers,” she said. 

JetBlue officials answered questions and gave depositions as the department has continued with its anti-trust review of the merger. 

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On Feb. 8, Spirit Airlines said it expects anti-trust regulators to make a decision about the merger in the “next 30 days or so.”

Spirit’s board approved a sale to JetBlue in July over fellow discount carrier Frontier Airlines. 

Reuters contributed to this report. 

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