Up In The Air: JetBlue-Spirit Merger Appeals Reach New Heights In Legal Battle

JetBlue Airways Corporation JBLU and Spirit Airlines Inc SAVE approached a U.S. appeals court with a plea on Monday to reverse a previous court decision that halted their proposed $3.8 billion merger.

This appeal was made following a block by the U.S. Department of Justice, challenging the merger's legality and potential impact on market competition.

The airlines contended in their legal brief that the merger, contrary to the court's decision, would bolster competition and lead to lower prices for a vast majority of consumers, Reuters reported. They argued the acquisition of Spirit would enable JetBlue to significantly expand its operations, positioning it as a formidable competitor against the four major airlines currently dominating U.S. air travel.

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Despite acknowledging the potential competitive benefits of the merger, U.S. District Judge William Young ruled against the deal on Jan. 16, citing concerns over federal antitrust laws. Young's decision emphasized the potential harm to consumers by removing Spirit's low-cost options and its competitive pressure on other airlines with higher fares.

The legal battle is set to continue, with the Justice Department expected to present its counterarguments on April 11. The appeals court has scheduled hearings for June, which precedes the July 24 deadline set by the companies to finalize their merger agreement, Reuters reported.

This appeal follows an antitrust lawsuit initiated by the Justice Department, supported by Democratic attorneys general from six states and the District of Columbia. The lawsuit argued the merger would result in reduced flight options and increased prices for millions of American travelers.

To mitigate regulatory concerns, JetBlue had previously agreed to divest certain assets, including gates and slots at key airports across New York City, Boston, Newark and Fort Lauderdale.

This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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