For the first time in two decades, the federal government is blocking an airline merger.
© Alicia Devine/Tallahassee Democrat + © Alex Gould/The Republic / USA TODAY NETWORK
(New York, NY) – Two US airlines had the “urge to merge,” but the Department of Justice said “no.” Last March, the Department of Justice sued to block the tie up agreement between JetBlue and Spirit Airlines. The deal would have seen JetBlue acquire the ultra low cost carrier (ULCC) for $3.8 billion.
This marks the first time in over 20 years that the federal government moved to block an airline merger. JetBlue had argued the deal would create better, stronger competition that would put pressure on the four largest airlines in the US — causing fares to become cheaper over time. But the DOJ and Attorney General Merrick Garland rejected that argument. Garland says the deal would reduce traveler’s options and choices, making fares eventually go higher as a result.
