JetBlue-Spirit ‘last rites’ meeting sets up possible DOJ lawsuit

Executives for JetBlue Airways and Spirit Airlines met with Justice Department officials Wednesday in a final bid to persuade the antitrust agency to approve their $3.8b merger, said people familiar with the matter. The agency is expected to decide whether to challenge the deal in the next several weeks, the people said, asking not to be named discussing a pending probe. A meeting between the companies and the Justice Department’s top antitrust officials — who make the final call on whether to file a case — is one of the last steps before a lawsuit or a settlement is filed, often referred to as a “last-rites” meeting. The agency, which has taken a more aggressive approach to mergers under President Joe Biden, is concerned the Spirit acquisition would eliminate a low-cost carrier, removing downward pressure on prices for all customers, even those who don’t frequently travel on discount airlines. JetBlue has offered to shed Spirit assets in Boston, New York and some parts of Florida to help secure federal support. The carrier confirmed that it’s in talks to sell those assets to other airlines on Friday, adding that any agreement would be contingent on the merger closing. The airlines have acknowledged an antitrust challenge was possible; Spirit said last year while it was fending offers from both JetBlue and Frontier Group Holdings Inc. that a JetBlue deal could raise antitrust concerns. As a result, the merger agreement was crafted to allow time for at least nine months of litigation ahead of the deal deadline in 2024. The lawsuit would mark the second against JetBlue by Biden’s antitrust lawyers, who are also seeking to unwind the airline’s alliance in the US Northeast with American Airlines Group Inc. A judge has yet to issue a decision in that case following a trial last year.<br/>