💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

California, three other states join U.S. bid to stop JetBlue-Spirit merger

Published 03/31/2023, 02:29 PM
Updated 03/31/2023, 03:52 PM
© Reuters. FILE PHOTO: Airplane model is placed on displayed Spirit Airlines and jetBlue Airways logos in this illustration taken, June 21, 2022. REUTERS/Dado Ruvic/Illustrations/File Photo
JBLU
-
SAVE
-

WASHINGTON (Reuters) -California and three other states on Friday joined the U.S. Justice Department lawsuit aimed at preventing JetBlue Airways (NASDAQ:JBLU) from buying rival discount carrier Spirit Airlines (NYSE:SAVE) for $3.8 billion.

In addition to California, Maryland, New Jersey, and North Carolina signed on to the lawsuit filed in early March.

"We look forward to litigating this important case alongside our state law enforcement partners to stop JetBlue from eliminating its rival, Spirit," Principal Deputy Assistant Attorney General Doha Mekki said in a statement.

The U.S. Justice Department sued on March 7, seeking to stop the transaction, saying the planned merger "will lead to higher fares and fewer seats, harming millions of consumers on hundreds of routes."

Both airlines declined immediate comment on the new states joining.

JetBlue CEO Robin Hayes defended the deal in a Reuters interview this month, saying it would save consumers money and boost available seats.

Adding state attorneys general to the lawsuit could mean extra staffing for litigation, and additional expertise regarding potential effects of the deal on particular states.

© Reuters. FILE PHOTO: Airplane model is placed on displayed Spirit Airlines and jetBlue Airways logos in this illustration taken, June 21, 2022. REUTERS/Dado Ruvic/Illustrations/File Photo

The lawsuit is the latest attempt by the administration of President Joe Biden to push back against further consolidation in industries dominated by a few powerful companies.

Separately, Florida Attorney General Ashley Moody had resolved a state probe into the deal after the airlines agreed to increase seat capacity by at least 50% in both Fort Lauderdale and Orlando airports if the merger is completed.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.