JetBlue expects US move to block merger with Spirit

JetBlue Airways said Monday that it saw a “high likelihood” that the Justice Department would sue the company this week over its planned acquisition of Spirit Airlines. The $3.8b deal could create a new challenger to the nation’s four dominant carriers, but would add to industry consolidation. JetBlue said that it had long prepared for such a lawsuit and that its timeline for closing the deal was unchanged, provided it overcomes the expected challenge in court. “We believe there is a high likelihood of a complaint from DOJ this week, and we have always accounted for that in our timeline to close the transaction in the first half of 2024,” the company said. The Justice Department and Spirit did not immediately respond to requests for comment. Buying Spirit would allow JetBlue to accelerate its plans for growth. Today, JetBlue controls more than 5% of the US airline market. After the acquisition, it would have a 10% share, making it the fifth-largest airline in the country. United Airlines, the fourth-largest carrier, has a 15% market share. Southwest, Delta and American Airlines each have a more than 17% share. “JetBlue’s combination with Spirit allows it to create a compelling national challenger to these dominant airlines,” JetBlue said in a news release on Monday describing some of its arguments in favor of the deal. The acquisition would benefit consumers and disrupt the industry, it said, allowing JetBlue to bring low fares to new markets and forcing those large airlines to match its lower prices. JetBlue also said it had committed to giving up some of Spirit’s holdings in markets such as Boston, New York and Fort Lauderdale, Fla., where the combined airline would have an outsize presence. In addition to the Justice Department, the Transportation Department could also stand in the way of the deal by blocking the transfer of operating certificates, opponents of the sale have argued.<br/>