- The Massachusetts, New York, and the District of Columbia AGs joined the U.S. DOJ in filing an antitrust lawsuit challenging JetBlue Airways Corporation’s proposed acquisition of Spirit Airlines, Inc., arguing the acquisition violates Section 7 of the Clayton Act and should be enjoined.
- According to the complaint, Spirit Airlines occupies a unique position in the airline industry because it operates on an ultra-low-cost, “no frills” business model, and the AGs and the DOJ assert that data shows that the presence of a Spirit route between two destinations forces other airlines flying the same route to lower their prices, and that Spirit’s low fares allow cost-conscious consumers to access flights. They argue these benefits will disappear if JetBlue is allowed to acquire Spirit.
- The complaint seeks a permanent injunction preventing JetBlue from acquiring Spirit.