(CTN News) – The Justice Department filed a lawsuit against JetBlue Airways’ acquisition of Spirit Airlines, claiming the move would increase faresAs a result of a federal judge’s decision, the Justice Department has won an important victory.
Purchasing discount airline Spirit for $3.8 billion would have created the country’s fifth-largest airline, a deal JetBlue and United said could boost their growth and competitiveness.
A federal judge in Boston blocked an anticompetitive deal earlier this month.
In light of JetBlue’s plan, the Justice Department alleges that millions of travelers will face higher fares and fewer options as well as losing out on Spirit’s unique competition.
In response to the announcement, Spirit shares plunged 60%, while JetBlue shares fluctuated between gains and losses.
It iswhether either airline has commented on the decision. JetBlue has said access to Spirit’s similar Airbus fleet will allow it to grow quickly when pilots and planes are a growth it says it needs to compete with airlines. years of consolidation.
The decision leaves JetBlue scrambling to figure out next steps, leaving incoming CEO Joanna Geraghty to navigate the airline’s future. Robin Hayes recently announcedand Geraghty has been successor. Spirit Airlines had planned to use Spirit to gain access to more routes and passengers congested airspace in New York and other cities.
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